Over the past couple of years I have been intrigued by the concept of a 'digital wallet' that will combine mobile payments with a variety of other benefits for customers. The more people I talk to, the more convinced I am that mobile digital wallets will mark a big shift in retail payments. A mobile digital wallet is more than just a mobile payment system because it combines:
Mobile payment. Digital wallets are likely combine several different payments systems into a single service, including mobile contactless payments, online (i.e. web) payments, and over-the-network mobile payments, making it easy for customers to make a variety of different types of payment from a mobile device.
Barcode scanning. Scanning barcodes or QR codes will let customers get more information about products, and let them pay for items on their phones before showing an on-screen receipt to leave the store.
Loyalty rewards. Instead of carrying (and sometimes forgetting) a separate loyalty card, digital wallets will track customers’ spending and offer merchant-funded rewards, either on the phone or at the point of sale.
Coupons and offers. Digital wallets are likely to offer customers coupons and location-based offers.
Without naming names, I’m struck by the sharply different perspectives these executives have. Simplistically, their view of mobile banking falls into two camps:
Mobile is just another channel. These executives see mobile banking as a way of letting customers do old things, like checking their account balance, in new ways.
Mobile will revolutionize retail banking. These executives believe that mobility could turn the retail banking industry upside down, by enabling customers to do entirely new things like scanning bills to make payments, responding to location-based offers, and receiving rewards at the point of sale.
We are very excited to announce the hiring of our newest analyst in the eBusiness and Channel Strategy team – Tiffani Montez.
Tiffani joins Forrester from Wells Fargo where she spent 20 years managing various aspects of digital strategy, implementation, operations and cross-channel integration across lending, investments and customer service. Tiffani joins a quickly expanding team which includes Peter Wannemacher, Bill Doyle, Ellen Carney and myself in North America dedicated to eBusiness and channel strategy for retail banking, lending, investments and insurance.
Tiffani’s will focus on digital financial service technologies including areas like mobile banking, personal financial management, online banking, person-to-person payments, automated account opening, etc. Tiffani will explore the vendor landscapes for these and other areas to help clients understand about how to make strategic vendor choices, implement new technologies, and create a operational team to manage the solutions once installed.
Additionally, Tiffani will expand on Forrester expertise in the lending area as well as cross-channel integration to drive sales and service strategies.