Global mobile commerce: How to distinguish between myths and reality

In some countries you may even see biometric registration. One thing to note is that technology will continue to play a critical role.

Integrating mobile commerce, mobile wallets and cross border mobile money transfer, coupled with the need to seamlessly integrate traditional distribution channels (such as legacy Western Union and MoneyGram retail locations), with the mobile environment will present many distinct and unique technological challenges.

It is all upside for the mobile carrier —it’s their network, their subscribers and a fresh, new revenue line. But carriers must be careful not to give the business to the banks.

The banks and financial institutions must engage. If they do not defend their existing customers, they lose. If they can capture a piece of the unbanked population, it’s a win. At worst, the mobile operators encroach on the banks’ traditional business.

At best, banks maintain their customer base or add to it. From any perspective, it is a tough road ahead for the banks. Technology companies with solutions to support the new mania will love it -- new challenges, new business and all of it unique; first generation deployments will lead to continuous innovation and improvement.

True challenge
Remittance companies beware —their strong suit is their distribution network, but they rely too heavily on too many pieces of the chain not under their control. (Mobile-to-mobile money transfer is already being conducted between Hong Kong and the Philippines.

A very slow start, with very tight margins.) We are looking at changing cultural and behavioral habits that are not decades or centuries old, but millennia old.

The future of mobile commerce is exciting, challenging and even daunting -- but acceptance will not be either as quick or as pervasive as many currently believe. The true challenge is creating and sustaining a profitable business.

Peter A. Rinfret is the CEO of IrisWireless