The document outlines 7 barriers to widespread adoption of mobile payments: 1) fees being too high and complex, 2) over-regulation slowing adoption, 3) no clear winner emerging among payment options, 4) players hedging bets slowing standardization, 5) unclear benefits of NFC technology, 6) security, simplicity and speed not adequately addressed, and 7) messaging around convenience and speed being flawed. The document argues that addressing these barriers is key to accelerating adoption of mobile payments.

1. Seven barriers
to mass adoption of:
Mobile payments
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2. Mobile payments will not work if:
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3. Mobile payments will not work if:
Number one:
Fees are too high and too complex. Customers know
that credit cards charge the merchant up to 3%, but
when a merchant tries to pass that fee on to us, are we
happy? With banks, payment processors, app store
owners, telcos and merchants all in a new eco-
system, charges need to be low and simple.
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4. Mobile payments will not work if:
Number two:
• Regulation is too heavy handed. Mobile payment
success depends on speed. If regulators from every
part of the eco-system try and add their little piece to
the puzzle – and then add tax - then there will be
delays and confusion and objection.
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5. Mobile payments will not work if:
Number three:
• A winner does not emerge. Merchants simply will not
accept the inconvenience of installing multiple
terminals and managing different payment providers.
Big initiatives have failed before. There are too many
choices – NFC, QR codes, apps, contactless cards etc.
NFC is not a sure thing – 1 million $100 terminals are
needed in the US before we start.
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6. Mobile payments will not work if:
Number four:
• Players keep hedging bets. This will not accelerate the
take up of mobile payments. As NFC becomes the de-
facto standard of the hype cyclists, credit card
companies, telcos and banks are investing in multiple
solutions. This does not help merchants or customers
trust them – and ultimately the choice is theirs.
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7. Mobile payments will not work if:
Number five:
• We do not work out which question NFC actually
answers. PayPal is now on track to process $3.5 billion
this year, QR codes and apps are becoming popular
and proprietary solutions devised by retailers, such as
Starbucks, are making ground with their top up cards
- and building loyalty in the meantime.
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8. Mobile payments will not work if:
Number six:
• The three ‘S’s’ - security, simplicity and speed - are not
addressed immediately. All of them are cited as
reasons for the slower than predicted take up of
mobile payments. Education to breed trust is needed
before customers commit. Customers see mobile
payments as extra not a replacement – so ubiquity is
still a dream.
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9. Mobile payments will not work if:
Number seven:
• The key customer messages are not rethought. The
current messages of convenience and speed are
flawed. It is not more convenient and it is only
marginally faster. The whole mobile payments process
needs to have an obvious and significant advantage
for customers. It also needs to work as
advertised, first time, for it to succeed.
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10. We are at the
tipping point!

11. Alex Leslie, Publisher
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