Banks and mobile network operators should work together on a mobile payments business model that plays to both their strengths, says Citi’s Dickson Chu.
When it comes to mobile payments, banks and mobile network operators should work towards a ‘hybrid model’ that combines the ‘bank grade’ traditional payments model with the new advertising-funded models being rolled out by the likes of Google and Apple, Dickson Chu from Google Wallet partner Citi, has told delegates attending the GSMA’s Mobile Money Summit in Singapore.
“It is about players within an ecosystem understanding each other’s roles, but there are business model complexities that need to be solved,” Chu explained. “Providing a great user experience, retail distribution and customer service — this is a role for the MNOs. Trust, safety and regulatory compliance — this is something the banks do well. Once these players come together, they will figure out how to co-operate and make money.”
Chu also addressed the question of who should own the customer in this hybrid scenario. “In this new era, it is the customer who owns the customer,” he explained. “Power is shifting to the consumer.”