If a mobile payment service requires any effort on the consumer side and does not support mainstream behavior, it will fail.
For adoption of mobile payments, 3 principles need to be in place:
1. Has a clear value proposition addressing a specific pain point at launch for either the payer or payee
(OK, check for Retailers)
2. Displaces a far inferior payment alternative which can not fight back (e.g. cash or check)
(Questionable as it’s unlikely ACH /bank payments trumps existing credit consumers would have)
3. Has no significant barriers to entry such as regulatory barriers, prohibitive infrastructure cost, or complex partnership requirements.
(Problem: a clunky consumer experience coupled with requirement to sign up bank account could cause too much hurdle for consumer adoption. Why clunky? Because consumers are used to having a bar code scanned rather than having to first scan a bar code, then have the bar code scanned… Also, consumers will likely be hesitant to sign up their bank accounts… and finally, who would want their health history data to be shared with retailers?!)
I hope for MCX’s sake that this TechCrunch article is not correct.
Else, we could see a big problem for consumer adoption of CurrentC.
Looking forward to hearing Dekker’s presentation at Money2020 and the resulting discussion.