I’ve talked before on this blog about ‘ewallets’ and the payment possibilities that are predicted to become ubiquitous on our mobile phones; consumer adoption of such applications has been discussed and debated across the industry for many years now.
However, a recent trial, conducted by O2, to test consumer demand for mobile versions of Oyster card and Barclaycard reveals that there appears to be clear demand for contactless services.
Ok, so the 6 month trial may only have included 500 people (mobile penetration in the UK is above 100%) but 67% of users found the mobile Oyster system more convenient to use than a standard Oyster card. Given that for each trip they only had to touch their phone against the reader, and that a phone is generally closer to hand than searching for a ticket in a bag or pocket, this is an understandable result.
Barclaycard Visa payWave was also tested by those using the required Nokia handset and more than 66% stated they would be interested in taking advantage of cashless payments on their mobiles in the future.
The user findings don’t make particularly astonishing reading; after all it’s easy to say you’ll take up a service in the future but the reality of adoption, when it becomes readily available, could be a different matter.
What this trial does offer however, is an insight into the customer applications and service levels required for the manufacturing of mobile phones in the, perhaps not so distant, future. Also, if the rollout of mobile payment technologies is really a step closer, it again raises the question of cost allocation on business use mobiles. If an employee is able to use their company mobile to load Oyster card and Barclaycard for business expenditure, how will the organisation manage the allocation of non-business costs? Additionally, travel is a non-VATable expense and will need to be discounted from the mobile bill before VAT bills can be accurately calculated.
Complexity already exists in the management of an organisation’s telecoms estate, the launch of mobile applications that blur the lines between business and personal usage seem sure to compound the situation. Food for thought to say the least?
Comments