Financial services institutions must gain a better understanding of the mobile payments market as new research indicates there is still confusion about how to proceed in the mobile payments market. According to research by Ovum, without a clear understanding of the relationship between mobile payments and the existing payments infrastructure, industry players will significantly miss out on the long-term potential of the market. With the market still in the early stages of development, consumer-facing mobile payments are predominately tied to existing cards or current accounts, meaning that the payment infrastructure underneath the user interface remains the same. This has resulted in questions about the ability to generate revenue from mobile payment systems. Value-added services, such as targeted advertising, loyalty services, couponing, and ticketing will be key to ensuring profitability, Ovum said. The research firm added that significant investment in the necessary infrastructure will therefore be required, particularly for value-added services. These will remain crucial to the long-term success of mobile payments in developed markets. Release
