Mobile Payments - the last Inch

Started reading up on mobile payments/ mobile wallets- fascinated by the opportunities in this space. The activity around the best solution to enable NFC is interesting, but my money (and fond hopes) is on the work being done by Giesecke & Devrient with NFC enabled SIM cards over other possible solutions (Micro SD, Device embedded chips, Stickers!)

•  Every Phone needs a SIM. Every Phone can use a SIM. You can take your SIM from phone to phone as you upgrade/downgrade. (Micro SIMs, GSM and CDMA notwithstanding!)
•  Putting NFC on the SIM will ensure the fastest possible rollout, especially into emerging markets where Mobile banking is a necessity and not a fashion. The Carriers would have an incentive to replace SIM’s for all existing subscribers to stop them migrating to competition to get this facility. Believe network operators have already been asking for this in order to get a foot into the payments space!
•  Subscribers will buy in as there would be no additional costs related to upgrading your phone. Much as I like the concept, can’t see myself buying yet another expensive phone just to get a mobile wallet!
•  A wider rollout of capability will incentivize retailers, merchant acquirers, and terminal manufacturers to fund the upgrade POS capability. Nothing focuses attention more than having lots of people walking in and asking for this capability - threatening to take their business elsewhere if you don’t. Most of us nowadays would avoid restaurants/shops that don’t accept cards as carrying huge wads of cash around has gone out of fashion. Can easily see this happening in other areas of retail as mobile wallets become prevalent.
•  A supplier/carrier independent NFC capability incentivises wallet/payment/card providers to come in and offer application based services competing on pricing, flexibility and convenience. The user would have a wider choice and the ability to use multiple providers at the same time. If we are smart, NFC will become a utility – much like WIFI and 3G and simply a platform to provide the last bit of connectivity to the development of mobile payment systems.

Frankly, most of us carrying multiple cards in our pockets and would find it less than appealing to be restricted to a single card on a MicroSD/Card Issuer solution. On stickers, the less said the better – with all due respect to Bling and to a few banks toying with this idea - why on earth would I want to take a beautifully designed phone ( Confession – I own an Iphone and an HTC Desire ) and put all sorts of bright, multicolored stickers all over it to use your services !

Watching the space closely to learn more…. Comments welcome