Mobile Payments Spurts Up, Apple Seems to Lost the Plot

People are taking up the mobile payment platforms whole heartedly rather than being extremely concerned in the recent times. An Accenture survey brought out some interesting facts which show that 40 percent of the North American consumers are actively using the Smartphones to make a payment at merchant location. Furthermore the 60 percent consumers who had kept themselves aloof from the mobile payment cited mainly security worries and privacy concerns. But still they show a tendency towards using it once these issues are sorted out.

Payment Technologies Improvement Is Demanded By Consumers

This survey also pointed out that the consumers are embracing the alternative forms of payments as they are quicker and much swifter than the traditional banking methods. Banks are quite sceptic about it and they are paying their keen interest on further developments. The payment technologies are expected to continue to evolve in coming times and the financial intuitions would be required to upgrade their middle and back-office systems in order to supports the customer demands for faster and more real time digital payments. It is the consumers who are driving the changes in the payments and the institutions have to adapt o fulfil their needs.

Apple Pay Promises To Provide Better Services

The Apple made biggest shake up in mobile based payment platform when it announced its feature rich payments system, tentatively titled Apple Pay. This NFC compatible system would allow the users with iPhone 6 and 6 Plus to make payments over 200,000 retail locations in the United States. Apple boasts a number of features which is expected to eliminate the consumers top mobile payments concerns.

Apple Gets a Jolt from MCX

MCX is a consortium of over 70 of the largest retailers in the United States which had came up with their own version of mobile wallet called ‘Current C’. These merchants have a huge clout and they are control in one in five retail dollars spent in the US stores. Furthermore they had also announced that they would be accepting the Apple Pay in their stores.

Consumers Sticks With Major Card Providers

This survey has also pointed out toward the trend of sticking up with the established and trusted credit card companies such as Visa, MasterCard and Amex which stands at 72 percent. Another 70 percent has said that they use PayPal as an alternative. 79 percent mobile users who find discounts and coupons based on their past purchases find it attractive. 29 percent had affirmed that they are willing to be tracked but only by trusted merchants.

Millennials are driving the changes in the mobile payments systems. They come from the age group of 18-34 and they are actively using mobile wallets. Report suggests that 30 percent of them are eager to try out wearables as a payment device, 29 percent of them uses PayPal at least weekly and 13 percent use digital currencies today. Apple Pay has a unique ability to change the consumer behaviour on a larger scale but their efforts would be based on satisfying the millennial first, if they wish to win over other competitors.

Virtual banks

Virtual banks are increasingly popular among investors. Since they have combined more advantages than the regular banks, people are attracted towards it. Now a day we are hearing more positive news about them. As the name suggests, almost all their entire activities happens online. Having all their activities focused on the web platform their operating cost minimized. No need for branches and no need for high paying multiple advisory. Consequence of all these the money savings are passed on to the customers virtual banks. In banking industry, the bank charges are very high and they are charging for each withdrawal but this kind of charges can be avoided in the online banks.

In virtual banks the administration fees and other regular bank charges are absent. You not only pay less but also the offer higher interest rates for your money deposited with then unlike the other street banks. With online banking, you can access your money at any time, 24h/24 and 7 days / 7. Sites are secure and the customer service is often of good quality. You can also automatically save practicing payroll deductions and pay yourself first. This behavior is preferred to achieve affluence smile icon Virtual banks. Finally, there is no bank fees charged; no minimums and most importantly, no limit transactions.

The variations in multi- channel strategy

The challenges of a multi-channel strategy are varied:

* Analyze the appetite canal of each client to use the appropriate channel.

* Update in real time all the information collected on the client and actions taken by the various channels.

* Provide a customer reference and not a contract or agency and reference different keys depending on the location of the system where you enter.

* Reorganize the network with the integration of multi-channel approach.

* To improve reception and increase the return rate to increase the effectiveness of campaigns.

* Controlling costs for greater profitability: to avoid cannibalization of a channel with one that would raise the cost of distribution for an identical volume of business.

The most delicate issue is to control the consistency of the channels. Indeed, the proliferation of channels only reinforces the risks associated with direct marketing campaigns: a campaign will generate even more inadequate for dissatisfaction it has been sent two or three times through multiple channels. Each pipe has its constraints that can undermine the effectiveness of a marketing campaign. The combination of more channels and interactivity allow them to circumvent these risks. To do this, the use of multi-channel increases the requirement on the supply, logistics, commercial pressure campaigns, performance monitoring and adjustments as well as organizational, process information system.

In conclusion, this multi-channel strategy, which appeared some years ago, remains in the crosshairs of the current issues. We have well established the online insurance cyber banking and have not had the desired penetration in the market. The trend can still be reversed and for the moment, many drivers have yet to be exploited:

* Messaging customized web portals of all institutions,

* The design of targeted advertising based on the behavior of the user,

* Improved tools subscriptions on the Internet and telephone (secure sites: electronic signature ...)

* Agency home with the setting up of terminals advisors.

A Vector of Innovation

The French are increasingly using more online banking with nearly 60% of Internet users who visit the website of their bank. Despite this, the agency remains the focus of customer relationship: 27,435 bank branches were recorded in France at the end of 2006, more than 1,000 additional branches in two years. Also, the banking and insurance from a distance, 100% online, limited for now to a few organizations: foreign banks, some credit institutions and insurance so it is important to link the distribution channels.

Personalize the communication and efficient use of distribution channels following the logic of process costs and customer value is the major axis of a multi-channel strategy. Depending on the objectives, policies can be differentiated.

In this logic, combinations client use x x channel are put forward to maintain the equivalence between the link type of transaction / channel and the link type of customer / channel.

Whatever the entry point used by the client, processes are implemented, depending on the task at hand to guide the client to the appropriate channel in terms of palatability and cost (programs incentives such as offers for online subscriptions).

In addition, indirect methods largely complete the distribution of offers and services such as the Broker (TV operators), the network affinity (automobile association for insurers) and the General Agent as an extension of networks of insurance agencies.