The payments industry is going to begin seeing various wireless carriers around the world working with operating-system providers, banks and card companies to “prop up mobile-payment services,” says Todd Ablowitz, president of Double Diamond Group LLC of Centennial, Colo. Carriers especially need banks because they understand how to handle money and are best suited to prevent money-laundering issues, he adds.

Eventually, “consumers will have a mobile-wallet system that allows them to pay through a variety of methods such as credit, debit and prepaid cards as well as loyalty cards,” Ablowitz says.

The concept of enabling a multiple payment-type system is important because consumers often have a long list of reasons why they choose a specific payment method. Many mobile-based payment services will start out with one payment method, but the services will evolve to support multiple payment methods because of consumer preference, Ablowitz says.

Payments Source, February 8, 2011
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