Page 26 - Pay Magazine s2014

companies & people
Industry Views: Let’s Get Physical
Why do plastic cards matter in a mobile world?
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Count me in the camp that believes the adoption of mobile in place of plastic is going to reach a waterfall
effect, and it will be a rough fall if you’re not prepared. Everyone can feel the pace
of this river of mobile adoption finally quickening and with the recent high-profile splashes, you can hear the faint sounds of that waterfall ahead. Before you bail out of plastic entirely, however, take caution of the winding river ahead. Plastic will linger alongside mobile for
years as we navigate multiple turns, including mer- chant adoption, consumer education, mobile battery life and mobile reliability.
Make no mistake—the analogy of plastic going the way of candles after the invention of the light bulb
is spot on. But remember, even today we all keep a candle available in case of emergencies. Twenty years from now, our plastic cards may likely be stashed in our disaster recovery kit along with bottled water and those candles. But until then, plastic cards will remain in our wallets; we’ll just be getting them out a little less often.
—David Prochnow,
vice president, prepaid product manager, MB Financial Bank NA
Plastic cards matter a great deal and will continue to matter in the mobile world for a long time to come. The majority of the current mobile payment solutions rely on NFC capability at the POS and, whilst we’ve seen great penetration across Europe over the last
number of years, retailer adoption of NFC terminals remains at approximately only 23 percent across Europe, so there’s still a long way to go. Contact- less ATMs also are very much in their infancy.
Another major ally for the plastic payment card in the mobile world is the poor battery life of smartphones. This is an area that clearly needs to be addressed if mobile payments are to become mainstream.
Whilst there are more increasingly innovative mobile payment products being launched—we ourselves are launching our own HCE solution, Boon—these mobile products will continue to be supported by plastic cards.
—Brian Lawlor,
director of sales and business development, Wirecard Card Solutions Ltd.
As an e-money issuer, we
look at each program to decide which form factor is best. While virtual cards in- side mobile wallets or for use online have their place, in most cases, we still pick plastic. Plastic cards are sim- ple and consumers under- stand them—not to mention the challenges mobile battery life and non-ubiquitous accep-
tance present. The user experience is an important part of payments. It should be simple and, at its best, rewarding. The winners in payments will be those that ensure the process is easy for consumers (and merchants) and works every time a card, phone or any other form factor is swiped, dipped, tapped or scanned.
—Lee Britton,
commercial director, Prepaid Financial Services