m-payments takes another step towards reality in the US

Otis, my dog, has learned to wait at the top of the stairs when we leave the house for a walk.  This is because Otis is a smart dog, and he knows that I’ve likely forgotten one of The Critical Three – cellphone, wallet, and keys, and will have to rush up the stairs, grumbling, to get whatever it is that’s sitting on the kitchen table.

But it seems like we’re getting closer to the day when I will only have to worry about the cellphone and the keys – mPayment, or the ability to use a mobile phone like a swipeable credit card, is taking strides towards reality.  Already in use in Japan and Korea, this technology allows the consumer to go into a store, grab their items off the shelf, and pay for them by waving their phone at the cash register.  Like many other mobile initiatives, this work is hampered here by a lack of standards, multiple carriers and device manufacturers angling for dominance in a rapidly changing market, and a relative lack of awareness on the part of US consumers.

However, there have been a few noteworthy changes in the past few months.   The Financial Services Technology Consortium (FSTC) announced on June 5th that they will be working to explore different technology models used to support mobile payments, and make recommendations on approaches to facilitate interoperable mobile payments in the future.  25 industry players, including large banks,  wireless carriers, and technology providers, are collaborating to research the baseline by which this important technology might become a reality in the not too distant future.  In April, Sprint and PayPal inked a deal to enable person to person mobile payments.   MyMoneyManager enables Sprint customers with PayPal to transfer funds to other users.   When the transaction is completed, they get a voicemail or text message alert.    Phone manufacturer Motorola invested in Vivotech late last year.  Vivotech makes units which can interact with cellphones in a number of places, includingstores, movie theaters, taxis, and vending machines.

The financial vertical, overall, is seen to be a great place for mobile to flex it’s muscles and show consumers how useful the third screen will be.   It’s an exciting time, and hopefully, as the system matures and evolves, will be widely adopted and provide our clients with a great opportunity to reach out and provide value to, our customers.  And best of all, Otis will only have to wait at the top of the stairs for The Critical Two – the wallet can stay safely on the kitchen table while the keys and the phone come with me.