U.S. Mobile Payments Landscape – Two Years Later

by Marianne Crowe, Susan Pandy, and Elisa Tavilla, Federal Reserve Bank of Boston; Cynthia Jenkins, NACHA
May 2013

The Federal Reserve Banks of Boston and Atlanta through their Payment Strategies and Retail Payments Risk Forum Groups have released a paper based on several meetings of the Mobile Payments Industry Workgroup over the last two years. This paper updates the original version issued in 2011 and reflects on the evolution of the mobile retail payments industry over the last two years, which has witnessed considerable changes including collaborative efforts across a diverse set of industry stakeholders despite a market still characterized by considerable fragmentation, increased channel and technology convergence, participation by new non-bank entrants, and continuous technological innovation and experimentation. The paper concludes that while the market is still nascent, progress is being made towards achieving benefits within this ecosystem such as improved security and fraud reduction, cost efficiencies, value-added services, revenue and monetization opportunities, and data privacy. As a result of changes in the mobile payments landscape, the MPIW has updated its original strategic principles and has carved out a long-term vision that embraces technological disruption and is committed to interoperability and ubiquity but realizes the need for a concerted effort to develop industry guidance and standards to ensure a secure and cost-efficient ecosystem.

Full paper pdf