The mobile banking/payments/commerce space is rapidly evolving all around the world and Pakistan is no different. With some good globally recognised successes in the banking space, there is now a growing need to extend this reach and services coverage to cater to a more aware market, specially within the masses.
With commercial and microfinance banks, and telcos, each trying to gain some traction withinthe lucrative "consumer transaction banking" business segment, it is becoming imperatively clear that unless this unique ubiquity of mobile presence is not channelized for a larger countrywide benefit, it would get lost in translation for the intended masses. In this regard, I believe it is important that the government and the relevant regulators start working with banks and telcos to formulate a singular countrywide mobile commerce/payments transaction framework that caters to the various needs of the population, with respect to convenient services.
The framework proposes the establishment of a singular Mobile Payments Switchin the country, managed by the financial regulator, where the bank-led model' enablers, ie all banks/NBFIs can connect their cross-telco customers to provide for a plethora of internally relevant or3rd Party enabled services to all customers. The best part of this single platform is the availability of all technology touch-points to customers based on their effective usability needs and a generic services component, which can be extended through independent service providers,as and when available.
This platform would allow each bank or telco or any 3rd party service provider / aggregator to use and offer each other's transaction services for a commercial fee, which can then be recovered from the customer and shared with all relevant parties involved. This cross bank / telco transaction and services ennoblement could significantly add a lot of value for each participating organisation and in turn provide their customers the trust needed to increasingly conduct their financial and non-financial transactions on the mobile or otherwise through online channels.
The completely absent Retail Merchant Acquiring component in the overall business proposition for the mobile payments is the next essential addition that needs to be quickly adopted by the industry. The merchant network organisations - banks and otherwise, can easily extend their facilities to mobile based purchases through debit and/or credit card backed transactions, to enable effective increase in reach and convenience.
Another element that is still completely absent within our market is the availability of content or applications within the mobile phone space. With global mobile app market gaining significant ground, especially due to the increased utilisation of smartphones as compared to basic phones (86% vs. 14%, respectively), it is essential that a payments infrastructure is made available in the local market that allows for purchases and financial transactions from within locally developed mobile applications. This, along with the increased need of the corporate sector for mobile presence, could serve as a major catalyst to promote in-app purchases for a growing smartphone enabled youth and middle market.
The greatest problem cited for not taking the 'single platform' approach is the competitive landscape of the banking and telecom industry of the country and their relevant ardent approach towards doing things their way and keeping the spoils to themselves. I believe that it is most relevant to realise that this technology is more than an individual mandate and corresponds to the overall national interest that encourages the establishment of convenient financial and non-financial transactions platform that serves the interests of the masses than their own.
As the economy slowly emerges from the downturn, it has augmented itself to be a more aggressive marketplace, where organisations are seeking to gain that all important edge over their rivals. I believe that with a singular Mobile Payments Platform in the country, there is significant possibility for companies to differentiate their presence by bringing forth unique payment services to the whole, and make it viable and fruitful for their and all customers to increasingly trust and transact using this proposed'singular'services platform,that makesa commercial sense for all parties involved.
The writer is a Director - Business Consulting with Echelon Consulting (www.echelonc.com) and can be contacted at akbar.moghal@echelonc.com for any queries and comments.