With smartphones now having the bandwidth to handle sophisticated payment transactions, I see this as the year when mobile payments will really start to take off. This
is down to the tremendous growth opportunity in mobile
payments, not only for banks wishing to capitalise on the ubiquity of the
mobile phone, but also for operators to offer their customers added
functionality for their devices.

A 2009 Gartner report predicts that by 2012 the number of mobile payment users will reach more than 190 million, representing more than 3 percent of total mobile users
worldwide – making this mainstream.
Barclaycard’s recent strategic partnership with Orange to offer a mobile wallet
handset for payments is further proof that mobile payments are gaining momentum.

The reality is that consumers are fickle and are likely to move to the provider that offers the services that benefit
them the most. This is all the more reason for card issuers and operators to
use innovative loyalty programmes that differentiate themselves from the
competition by providing rewards and balances in real-time. Loyalty programmes
not only encourage new customers to join or use new services with the lure of
earning points or rewards, but also serve as an incentive for current customers.
The benefits don’t just end there, increased knowledge of customer behaviour
will enable businesses to understand their preferences and work toward better
serving their needs.

As I see it, loyalty solutions that bridge the gap between the mobile phone and the use of cards, and reward customers
however they choose to pay will be paramount over the next few years. With users
benefiting from loyalty rewards and operators, retailers and banks maintaining
their customer base – it is truly a win-win situation for everyone.