BRUSSELS, 8 May 2012 – In a new white paper, SWIFT stresses the importance of mobile payments for the financial industry and recommends that banks could make a bolder move in the mobile money transfers business – working together to deploy a global mobile payments service for international money transfers and remittances.
The new SWIFT white paper argues that mobile payments are rightly a top investment priority for banks globally – unsurprisingly, since out of a world population of 7 billion, more than 5 billion (70 per cent) have a mobile phone, while only 2 billion (30 per cent) have a bank account. This fast growing market is predicted to carry USD 1 trillion in transaction value by 2015.
However, non-banks like mobile network operators and e-commerce companies are currently deploying many of the mobile payment solutions. Several banks have already embraced mobile payments, but banks all around the world could do more to strengthen ties with their customers in a new “experience banking model” (c.f. Correspondent Banking 3.0).
In its Mobile Payments White Paper, SWIFT outlines three areas of strategic opportunity for banks:
- Actively invest and expand mobile banking, in particular for corporates;
- Partner with e-commerce companies to gain experience in mobile commerce;
- Develop a global service for mobile money transfers.
In particular with regard to international money transfers, banks should collaborate to develop a global service that is mobile enabled. This can increase their market share and help address competition from non-banks.
“Banks have the power to shape the future of mobile payments. Collaboration with room for differentiation is key. All it takes is for a few leading banks to take initiative”, says Wim Raymaekers, Head of Banking Market at SWIFT.
Explore in detail the new SWIFT white paper by downloading a copy from swift.com.
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,000 financial institutions and corporations in 210 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.