Mobile payment to be mainstream in four years - report

13 July 2011Mobile payment to be mainstream in four years - report As companies race to take advantage of the mass adoption of smartphones and rapid development of new technologies to offer mobile payment services, executives believe the use of a mobile phone or device to make payments or conduct banking transactions will require four years to become widely accepted by consumers, according to a global survey of business executives by KPMG International, a global network of firms providing audit, tax, and advisory services.

The KPMG survey of nearly 1,000 executives in primarily the financial services, technology, telecommunications, and retail industries globally found that 83% of the respondents believe that mobile payments will be mainstream within four years, compared to only nine percent who see them as mainstream today.
 In fact, 46% believe mobile payments will be mainstream within two years.  

"We believe that exploding smartphone growth and myriad opportunities will grow mobile payments at a much faster rate than our respondents anticipate," said Gary Matuszak, KPMG Global Chair of the Technology, Communication and Entertainment practice.  "A wide variety of payments is ready for adoption, as several key players already provide or are rolling out mobile payments, and interest among consumers in utilizing mobile payments is growing, in line with the industry's readiness to deploy them."

Seventy-two percent of the executives said that mobile payments are now or will be reasonably important in the future, with specialist online systems building on its leading position as a payment method, and m-banking and near field communication (NFC) gaining significantly greater traction than today.  
Fifty-eight percent said they have a mobile payments strategy in place.

"While there is consensus about the significant value of this opportunity among executives across geographies and industries, the type and size of opportunity varies between developed and developing countries depending on depth and reach of the financial infrastructure  in place. We believe that those firms willing to engage in cross-industry partnerships and coopetition are more likely to succeed and dominate the market due to the complex set of business relationships required to deliver mobile payments to a mass market," said Matuszak.

While the majority of the business leaders surveyed believe consumers are currently concerned about security and privacy when using mobile devices,  they believe other factors are  more compelling attributes of a successful mobile payment strategy.  
Specifically, 8% believe convenience/accessibility is the highest attribute, followed by simplicity/ease of use, at 73%, security, at 57%, and low cost, at 43%.  

At the same time, business leaders, globally and in the USA, view security as the main challenge to developing mobile payments strategies.
Technology and adoption of the technology is a distant second, followed by privacy.

"The business leaders understand that when it comes to consumers choosing a provider based on security, reputation can make the difference, and any damage to a business' brand can prove costly, even to the extent of being a showstopper," said Sanjaya Krishna, KPMG US Digital Services Leader in the TCE practice. "As a result, leading businesses are adopting multiple approaches to alleviate customers' privacy and security concerns."

Matuzak added:

"One surprising result of our survey is the absence of divergent views across both industries and geographies, which speaks to the consensus that mobile payment is regarded as an opportunity for players across the value chain of commerce."

With the mobile payments industry poised to make a major leap in the coming years, several players are expected to play significant roles, though two groups of financial institutions are the current front-runners, say respondents.

Banks, which scored the highest in level of importance in the value chain, and credit card companies will have the most important roles, according to business leaders globally.
They placed telecommunications companies third, ahead of specialist online payment players (eg. PayPal, Boku, Obopay), online service provider giants (e.g. Google, Facebook, Amazon), retailers and technology companies.
Among US respondents, online service provider giants placed third, followed by specialist online payment players and telecommunications companies, which were rated of equal importance, retailers and technology companies.

Each of these companies' success can be tied to the prospects for the five current payment methods which are battling for a share of the market.

The KPMG survey respondents, globally and in the USA, see specialist online systems leading the pack, due to the fact that this method already has significantly greater penetration than alternatives, and its penetration is expected to increase.

Respondents said that specialist online systems have the greatest prospect for success, followed by mobile banking, NFC, carrier billing and the "mobile wallet."

"While KPMG believes that these forms of mobile payment will all gain some traction, our view is that M-Wallet is one of the most exciting and promising payment opportunities. M-Wallet provides the momentum to move beyond payments to participate in the entire chain of mobile commerce, from consideration and brand awareness to purchase after-sales loyalty and care," said Tudor Aw, Technology Sector Head, KPMG Europe.

M-wallet – uses mobile device as a wallet with account and transaction information stored on the devices' SIM card.

M-banking – direct access to bank services and information via the mobile device

NFC – short-range (millimeters) wireless communication technology that enables exchange between devices, such as between a cell phone and a point of sale device at a checkout counter.

Specialist Online systems – online payment processing systems such as Google checkout and PayPal.  

Carrier billing – purchases are charged to the mobile phone bill

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Amazon Android tablet to launch in October - report

Amazon Android tablet to launch in October -

14 July 2011Amazon Android tablet to launch in October - report Amazon.com has battled Apple over digital books, digital music and mobile applications.

Now the two companies are taking their clash to another front:
The tablet market.

Amazon plans to release a tablet computer by October, people familiar with the matter said, intensifying its rivalry with Apple's iPad.

While Amazon has long offered digital content on its Website, it has lacked much of the hardware to go with it.
Now the Seattle, USA, company hopes customers will use its tablet to buy and rent that content, said people familiar with its thinking.

An Amazon spokesman didn't respond to requests for comment.

Amazon's looming entry into the tablet market, which Chief Executive Jeff Bezos has hinted at in his appearances this year, is the latest example of how technology companies, once focused on a particular segment of the industry, are increasingly jostling one another on multiple fronts.

That trend is evident in the enterprise-technology arena, where onetime partners such as HP and Oracle became enemies in markets including server computers, and it is now becoming evident in consumer technology.

In recent years, Apple, Amazon and Google have found themselves competing in areas such as the mobile software market and digital content.
The overlap stems from a race to tap into the young and growing field of selling digital goods, such as video, music and books, which are potentially vast markets as more consumers turn to downloads.

Apple and Amazon have already had some bitter clashes.
In March, Apple sued Amazon alleging the online retailer had violated the trademark on the name "App Store."
Apple Chief Executive Steve Jobs also has poked fun at Amazon's Kindle electronic-book reader, saying that few people read and that general-purpose devices like the iPad are superior to single-purpose ones.

"Amazon and Apple are frenemies" — both friends and enemies — said Sarah Rotman Epps, a Forrester Research analyst.
They "rely on each other as partners" — Amazon, for example, sells digital books via its Kindle app in Apple's iTunes Store — but "at the same time, they aggressively compete for customers' attention and dollars," she said.

Amazon faces a tough road against Apple in the tablet market.
Since introducing the iPad last year, Apple had sold 19.5 million of the devices as of the end of March 2011.
It is far and away the leader in the tablet market.

The iPad has been bolstered by its connection to Apple's App Store, which sells videogames and other software, and Apple's iTunes store, where people can easily download music, videos and books.

Apple officials didn't respond to a request for comment.

Amazon's tablet will have a roughly nine-inch screen and will run on Google's Android platform, said people familiar with the device.
Unlike the iPad, it won't have a camera, one of these people said.
While the pricing and distribution of the device is unclear, the online retailer won't design the initial tablet itself. It also is outsourcing production to an Asian manufacturer, the people said.

One of the people said the company is working on another model, of its own design, that could be released next year.

The introduction of a tablet poses a conundrum for Amazon on how to keep from cannibalizing sales of its popular Kindle.
Amazon has long said the Kindle is its best-selling device, though it has declined to disclose sales.

A person familiar with Amazon's thinking said it still figuring out how to market the tablet computer.
One issue is whether customers will want to buy both the tablet and Kindle, which is viewed as a dedicated-reading device for bookworms.

But Amazon will be facing competitors other than Apple.
Sony unveiled prototypes of a tablet and a wallet-shaped dual-screen portable device that will offer movies, apps, music, books and PlayStation games.
Sony said the devices would be available later this year.

Amazon plans to introduce two updated versions of its black-and-white Kindle in this year's third quarter, people familiar with the matter said.
One of the new Kindles will have a touch screen, which current models don't have.

Amazon is better-positioned than other companies to go up against Apple, said Ms. Epps, the Forrester analyst.
Part of the reason is because Amazon already has a digital-content store with a significant selection and following.

Amazon has heavily promoted its digital offerings this year.
It launched a streaming video service in February. And in May, it undercut Apple's iTunes store by selling an album by pop singer Lady Gaga for 99 cents.

Amazon is also in a position to offer a cheaper alternative to the iPad, said Ms. Epps.
It could sell the tablet for a loss while hoping to make money on sales of movies, music and books.

Customers are "looking for a cheaper alternative, and they're looking for a compelling experience, in terms of both content and shopping," which Amazon can offer, Ms. Epps said.

Nonetheless, she noted that unlike Apple, which has its own retail stores, Amazon lacks a natural brick-and-mortar outlet to sell its products.
In addition, Amazon's product may be less refined than the iPad, which is in its second generation.

"I don't know whether Amazon will be able to compete with Apple head-to-head on hardware sophistication," she said.

 

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Church of England faces being wiped out, report warns - Telegraph.co.uk

The Archbishop of Canterbury, Dr Rowan Williams, has acknowledged that the Church must devote more energy to increasing the number of regular worshippers over the next five years Photo: PA(router,verizon wireless,wireless network,wireless internet,i phone,i phone verizon,my verizon wireless,wireless adapter,att wireless)

In the last 40 years the number of adult churchgoers has fallen by half while the number of children regularly worshipping in public declined by 80 per cent, the study says.(router,verizon wireless,wireless network,wireless internet,i phone,i phone verizon,my verizon wireless,wireless adapter,att wireless)

The Bishop of Southwell and Nottingham, the Rt Rev Paul Butler, will present findings to the Church's national assembly, the General Synod, in York on Saturday.
Synod members will be urged to vote for a new national drive to recruit more members.
The Archbishop of Canterbury, Dr Rowan Williams, has acknowledged that the Church must devote more energy to increasing the number of regular worshippers over the next five years.
The report, Mission Action Planning in the Church of England, states that the "sharp" fall in churchgoing since 1970 poses a significant threat.
"This decline in membership, and the accompanying rise in average age, means that fewer people are becoming disciples of Jesus Christ, and that the Church is able to have less impact and influence in the public realm, both nationally and in the transformation of local communities," it says.
"We are faced with a stark and urgent choice: do we spend the next few years managing decline, or do we go for growth?
"In other words, do we accept the continual numerical decline of the Church of England as inevitable, or do we dare to believe a different future, that God might want his Church to grow, in holiness and in numbers?"
According to official figures, the number of worshippers attending church each week fell by 30,000 between 2007 and 2009, to 1.13 million.
Church of England officials argue that the decline partly reflects the nature of modern society, in which many kinds of membership organisation - including political parties - have lost supporters.
The House of Bishops is expected to oppose Bishop Butler's motion calling for a "national mission action plan" to help parishes grow. His critics argue that recruitment is most effective at a local level.
The General Synod will also hear a call for an emergency debate on homosexuality. Church officials will be accused of "woeful" failure to protect the institution of marriage from erosion by the rise of civil partnerships and Coalition plans to allow same-sex couples to register their partnerships in religious settings.
A lay member of Synod, Andrea Minichiello Williams, will urge the Archbishops of Canterbury and York to calls an "emergency" debate to discuss Church's stance on marriage reforms.
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Stocks drop as job report disappoints - CNNMoney

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NEW YORK?(CNNMoney) -- U.S. stocks posted broad losses on Friday as Wall Street dealt with a dismal June jobs report that showed hiring crawled to a near standstill last month.

"We now have a clear indication of a stall in the U.S. economic recovery," said Frank Davis, director of sales and trading with LEK Securities.

The Dow Jones industrial average (INDU) sank 62 points, or 0.5%, to close at 12,657. The S&P 500 (SPX) fell 9 points, or 0.7%, to 1,344; and the Nasdaq Composite (COMP) fell 13 points, or 0.5%, to 2,860.

Investors focused on the Labor Department's jobs report, which showed the U.S. economy created only 18,000 jobs last month, a fraction of the 120,000 jobs that a CNNMoney survey of 27 economists had forecast.

June's unemployment rate rose to 9.2% from 9.1%, versus the decline to 9% economists had expected.

"There's no way to spin today's number into a way that's positive," said Liz Ann Sonders, chief investment strategist with Charles Schwab.

Investor reaction to the report was broadly negative. Twenty three of the 30 Dow members ended the session in the negative, with Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500) the biggest laggards among the blue chips.

Meanwhile bond yields swooned as investors flooded into the relative safety of government bonds. Gold prices rose as well.

The yield on the benchmark 10-year note briefly fell below the 3% mark, down from Thursday's yield of 3.14%. Energy-related commodities also sold off, with oil falling more than 2.5%.

"We have had many, many months to stimulate this economy and still not seeing businesses hire," Davis said. "It's a real concern."

The government's jobs report came as a sharp contrast to two stronger-than-anticipated reports released Thursday on the employment market, which helped U.S. stocks rise sharply yesterday.

Despite today's losses, all three indexes posted gains in this holiday-shortened week. The Dow rose 0.4% while the S&P rose 0.2% and the Nasdaq rose 1.4%.

Companies: News Corp. (NWSA, Fortune 500) was the worst performer on the S&P 500 on Friday, sinking 4%, as the company continues to deal with the fallout stemming from the "News of the World" hacking scandal. Investors expressed concern that the hacking scandal may stop regulators from approving News Corp.'s bid to purchase British TV provider BSkyB.

Shares of JDS Uniphase (JDSU) fell 4.5% after Piper Jaffray lowered its price target on the stock to $21 from $25.

Economy: The Commerce Department said May wholesale inventories rose 1.8%, better than the 0.9% that economists had expected.

U.S. consumer credit rose by a seasonally-adjusted rate of 2.5% in May, the Federal Reserve said Friday. It was the eighth-straight monthly increase for that figure.

World markets: European markets ended Friday's session solidly lower after the jobs report. Britain's FTSE 100 ticked down by 1.1%, the DAX in Germany lost 0.9% and France's CAC 40 fell 1.5%.

Asian markets finished the week with gains. The Shanghai Composite ticked up 0.1%, the Hang Seng in Hong Kong jumped 0.9% and Japan's Nikkei rose 0.7%.

Currencies and commodities: The dollar fell against the euro, the Japanese yen and the British pound.

Oil for August delivery fell $2.47, or 2.5% to $96.20 a barrel.

Gold futures for August delivery gained $11 to $1,541.60 an ounce.  

First Published: July 8, 2011: 9:44 AM ET

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