Ecosystem stakeholders - Mobey Forum's new paper looks at evolving business models

Industry group looks at evolving mobile payment models

The recent squabble between Google and Verizon Wireless has highlighted some important questions that are being asked in the developing mobile payment space. One big question is who "owns" the customer? And is there a business case that supports one stakeholder over another? 

When Google said Verizon had requested it turn off its Google Wallet application, and blocked the app's access to the embedded secure element in new Galaxy Nexus phones running Google's mobile operating system, it sounded like Verizon was claiming ownership. The secure element is the crucial chip that holds and safeguards private account data and can be embedded in the phone or attached or inserted in a variety of ways.

To observers, Verizon's position made some sense. After all, Verizon owns the actual relationship with the customer. Plus, Verizon also owns part of Isis, the $100 million joint venture looking to compete with Google Wallet.

But then Verizon responded to the charge by saying it did not, in fact, block any application from its phone. A Verizon spokesman said all discussions are still ongoing about Google Wallet and its access to the embedded secure element.

So the question remains: Which stakeholder in the payment ecosystem will own the secure element and the data that goes on it? Is it the mobile network operator like Verizon or the mobile operating system provider like Google? Or what about financial institutions, credit card processors and handset manufacturers?

Mobey Forum, a non-profit industry organization established in 2000, is dedicated to fostering the emergence of a mobile financial system worldwide. Its counts among its members mobile network operators, banks and handset manufactures, the very players embroiled in the mobile payment battle. Klaus Jansen-Knor, a member of Mobey Forum's working group on mobile payments, told Mobile Payments Today that several different successful business models are possible.

Read the rest of the story at: http://www.mobilepaymentstoday.com/article/187947/Industry-group-looks-at-evolving-mobile-payment-models