Adopting mobile payment channels: Key challenges for US financial institutions

Abstract

A cultural communication change is happening around the globe. The world is going wireless. This paper discusses the evolving trend of wireless communications and how it relates to future business marketing, planning and activity. In particular, it examines the impact that text messaging and using mobile devices as a preferred method of communication across specific generations in the US will have on financial service institutions. As the text messaging generation is entering the job market and becoming the next core customer segment, financial institutions need to identify ways to attract this group to maintain and grow their businesses. The unique challenges that financial institutions will encounter in the race to gain the business of this core market segment are discussed. The choices and challenges facing each financial institution, including types and venues of mobile services and timing and target markets of service launches are examined. Additionally, reviewed alongside project management and marketing issues are the options and choices related to security and authentication in the new mobile channel. Lastly, the difficulty that financial institutions face when creating the business case for entering the mobile channel as an extension of banking services is explored.