Mobile Payments: Are You Ready for the Early Majority?

M-payments refer to the use of mobile devices such as mobile phones and PDAs to make cashless financial transactions on the move. M-payments can offer a wealth of revenue generating possibilities for mobile telecom operators facing limited growth in ARPUs. Telcos in the Far East have already stolen a march on Europe and the US in this space. The market is likely to be shaped and powered by supply side technology standardization, financial services drivers, and growing consumer acceptance. The authors' believe that there are three key strategic options for mobile operators: m-payments as a core business, provision of m-payments as an add-on service, and no direct, or limited m-payments business.