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Mobile banking will continue to grow next year across a multiple fronts. Not only will more banks jump into mobile with optimized sites and application, but financial institutions will also build their existing mobile programs with a variety of new services.

Much of the interest in mobile banking is being driven by consumers, who tend to interact more with a mobile banking solution than they do Internet banking. On average, customers use a mobile banking app three times per week and only use traditional Internet banking two times per week, according Malauzai Software.

“We see a demand for mobile via the application and text messaging,” said Jim Simpson, vice president of information technology at City Bank Texas, Lubbock, TX, which has over 30 locations across Texas.

Visa this morning announced that it has agreed to acquire Fundamo, a specialist mobile financial services provider to network operators and financial institutions in developing economies, for $110 million in cash.

In a separate announcement, the giant payments technology company said it has entered into a new, long-term commercial agreement with Monitise, a provider of mobile money solutions for financial institutions in more developed regions.

Here’s how the duo of agreements was pitched: The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver best-in-class mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.

Orange and Barclaycard have launched the UK's first contactless payment service allowing customers to pay for purchases using a smartphone.

Orange Quick Tap allows payments of up to £15 in over 50,000 outlets around the country, including Pret A Manger, McDonald's and Subway.

Customers have to purchase a Samsung Tocco Lite smartphone to use the service, which is available for £55 on pay-as-you-go or free on a £10 per month, two-year contract.

It’s no secret that credit card companies are shelling out big bucks and aggressively forming partnerships and deals to start cashing in on the mobile and digital payments innovations currently taking place. American Express, which recently debuted its own digital payments product Serve, has been particularly aggressive on the partnerships front, striking recent deals with both Foursquare and Facebook. Mastercard has bet on NFC with a partnership with Google for Google Wallet and bought online payments gateway DataCash for $520 million last fall. And Visa has made a number of major moves in the mobile and digital payments space of late; including making an investment (and taking on an advisory role) in disruptive startup Square, buying virtual goods payments platform PlaySpan for $190 million, and acquiring mobile payments company Fundamo for $110 million. We sat down with Visa’s Global Head of Mobile Product Bill Gajda and the company’s Head of Global Product Strategy, Innovation and eCommerce Jennifer Schulz to discuss how the financial company is planning to compete in both mobile and digital payments.

In May, Visa announced its plans for the digital wallet. We’ll explain this initiative later in the post, but part of this platform would allow you to access your loyalty points, credit cards and more from your mobile phone at the point of sale. And the third pillar of Visa’s mobile strategy is incorporating value-added services like real-time alerts, contextual services, and offers at point of shopping based on where you are.

Gajda explains that Visa is licensing mobile payments applications PayWave for integration with the ISIS wallet and the company is actively looking for other ways to integrate with NFC into the company’s mobile payments structure.

12.7 million check-in done on smartphones in March 2011, says comScore report Nearly 17 million US mobile subscribers used location-based 'check-in' services on their phones in March 2011, found a new study by comScore.The study showed that users have done 12.7 million check-in on smartphones, representing 17.6% of the smartphone population.The check-in service users, representing 7.1% of the entire mobile population, showed a high propensity for mobile media usage, including accessing retail sites and shopping guides. They also displayed other characteristics of early adopters, including a stronger likelihood of owning a tablet device and accessing tech news, when compared to the average smartphone user.

The research firm said that of the 16.7 million people using check-in services on their mobile devices, 12.7 million (76.3%) did so via a smartphone device.Android accounted for the largest share of check-in service users with 36.6% checking-in from an Android device, while 33.7% of users checked in from an iPhone. Apple had the highest representation relative to its percentage of the total smartphone market.RIM accounted for 22% of check-in service users, while Microsoft, Palm and Symbian each accounted for less than 5%.The study showed that more than 95% of check-in service users used their mobile browser or applications. Nearly 62% accessed news. Check-in user behavior was also consistent with that of traditional early adopters, with 40.3% of users accessing tech news and 28.2% owning a media tablet, both significantly higher than average.

Further, check-in service users also showed a high propensity for accessing retail-related destinations on their mobile devices. Nearly one-third of users accessed online retail sites on their mobiles, while one-fourth accessed shopping guides.Check-in service users were also more likely to be exposed to mobile advertising, with nearly 40% recalling seeing a Web or app ad during the month, compared to just 27.5% of smartphone users.

Peer 1, the hosting provider, has joined the ranks of Rackspace, GoDaddy and other hosting companies that have decided to get into the cloud. On Monday, it launched its Zunicore service, which combines the elements of an Infrastructure-as-a-Service with those many would consider more akin to a Platform-as-a-Service.

For example, instead of a virtual machine, a customer buys a “resource pool” that they can customize to fit their needs, as opposed to buying a small, medium or large virtual machine.

The company also offers auto scaling, a feature more common in Platforms-as-a-Service such as VMware’s Cloud Foundry, Microsoft’s Azure or Heroku. However, the service is pay-as-you-go and deployed on demand. It includes a dashboard that functions as a fuel gauge for compute resources that shows IT pros when to spin up additional resources.

Cloud Computing is both an abstract concept which can reffer to every logical grouping of software services provided by one or more companies which may or may not be on the same hardware architectures. ted ar It also stands for the physical architectures involving SOA (services-oriented architecture) systems, server farms and a lot of hardware to provide on demand services 24/24 no matter what may happen. Not matter how one sees it, it’s all about regrouping services and taking responsabilities off from our good old PC or laptop standing on our desk. Not matter how one sees it, it’s all about regrouping services and taking responsabilities off from our good old PC or laptop standing on our desk.  Of course it’s a 2010 buzzword and I am personally seeing some kind of Terminal Server (Mainframes anyone?…) à la sauce New Millenium coupled with web technologies. The thing is… Cloud Computing along with Software Virtualization are really promising.  I put the second one with it because everything is about having almost nothing on the client side. ore.  You just log into the cloud and there you have your account and your services, may they be ga The idea of having every service in the Cloud is to ensure that eveything you need is always available from wherever you are on the planet.  You don’t need your PC or Laptop anymore.  You just log into the cloud and there you have your account and your services, may they be games, movies or any software.  And with the huge Mobile market, you’re about to have any of your services right there in your pocket. Read more at www.gamasutra.com 

The launch of O2’s mobile contactless payment “Wallet” app has been delayed after concerns that it is not yet offering an adequate customer experience.

The operator, which initially said it was planning to launch O2 Wallet in the “second half” of 2011, is choosing to take extra time trialling the service internally before opening up consumer trials and a subsequent public launch

O2 Wallet is currently being trialled by more than 300 O2 employees and this is thought to increase to about 500 staff in the coming weeks as the app becomes compatible with more devices and other O2 services such as its loyalty programme Priority Moments.

The infographic which outlines who does and doesn’t use location-based services and why, states a number of concerns regarding the use of these services. First, 50 percent of users don’t have smartphones (I was once among this group and have since been unable to imagine life without it). 48 percent of non-users cited privacy concerns, which is very understandable because it was at the root of my apprehension until I realized I control my own privacy when using these services, and 49 percent had no motivation.

Motivation to use location-based services like Facebook Places, which is utilized by 90 percent of people who “check-in” anywhere online, shouldn’t be waning. Companies should be offering more promotions to bring in local costumers because it’s basically free advertising! 54 percent of current users use the services for discounts and coupons and 44 percent of non-users would consider using a location-based service for discounts and coupons. Why aren’t they converted? There’s just not enough good deals, in my opinion.

What’s also interesting is users are more likely to check-in with large brands (perhaps this is because those are the ones that often offer promotions) but less likely to share those check-ins with friends. When it comes to the social aspect of sharing your location, who cares if you went to Panera for lunch? Friends want to know about the cool mom-and-pop places they’ve never heard of.

The initial set of documents from the Skyhook trial (which I analyzed here last week) gave a quick flash of Google's gamesmanship. But examining the larger set of documents from the initial phase of the Skyhook trial against Google is opening a window into Google executives' views on how they sought to reinforce Google's monopoly and collect personal information from its users. These  other batches of documents (see these PDFs here and here from the trial) highlight how Google both recognizes the monopoly nature of location-based services on smartphones and how it can keep extracting private information from users while maintaining a figleaf of "consent." As the New York Times noted in a story over the weekend, the emails flying back-and-forth give an almost minute-by-minute window into the workings of high-tech negotiations-- at least until some legal-aware top managers abruptly killed email exchanges with messages like "Thread-kill and talk to me off-line with any questions."  But in the meantime, we get some quite damning admissions by Google execs on their internal practices.

When Motorola and Samsung announced they were going to use Google-rival Skyhook for their location-based services on their Android smartphones, Google on one hand responded in these internal emails by noting the superiority of Google location information precisely because they were maintaining constant surveillance on customers and local wi-fi spots to update their location maps. "We are constantlyre-mapping through our users, which keeps the data re-refreshed," said one email (see p. 44) or, from another manager, the advantage of "the large volume of device distribution that helps the data collection. (see p. 32) Conversely, the managers bemoan the doom if Skyhook gets the business from manufacturers like Motorola and Samsung and Google loses the ability to spy on customer locations through the smartphones. "It will cut off our ability to continue collecting data to maintain and improve our location database.  If that happens, we can easily wind up in a situation we were in before creating our own location database and that is (a) having no access at all or (b) paying exorbitant costs for access."

Google managers recognize this market as a classic winner-take-all monopoly situation where controlling more devices let's you control more data which in turn gives you such an overwhelming advantage in providing location-based services that manufacturers will have to use your service.  With Android phones beginning to take off strongly in early 2010, who controlled those location-based services would create a tipping point for control into the future.

New mobile payment services help banks realise the future of payments

Visa Europe, Europe’s leading payments technology company, today announced the launch of Visa Mobile Person-to-Person payments and Visa Alerts: two new services designed to help consumers manage their money and make payments using their mobile phones.

the new services give Visa Europe’s member banks the tools to respond to growing consumer demand for fast, secure, convenient and innovative ways to make and manage payments using their mobile phones.

Without so much as a whisper from the retailer itself, Amazon’s Android tablet is heading our way. Rumoured to launch at the end of the third quarter in time for the holiday season, Amazon is hoping it can steal a little of Apple’s thunder and steal a little of its market share.

Amazon’s decision to launch an Appstore was a surprising one, especially because there was no shortage of alternative Android marketplaces at the time. Incorporating its patented recommendation system and its “Free App A Day”, the third-party application store won many fans in the US primarly because it has been providing customers with downloads of some of the most popular Android apps and games.

Amazon is one of, if not the world’s number one Cloud storage and service provider and is seen by many to have led the march towards the Cloud, with affordable and reliable online services that even the most bootstrapped startups could afford. Asserting itself in the hosting market has helped the company make the best of its other web-based services, namely online music downloads and its new Android Appstore.

Isis, the near field communication mobile wallet venture from Verizon, AT&T and T-Mobile, took another step forward with the announcement that it has selected SIM card maker and digital security specialist Gemalto as its trusted service manager (TSM) for the wallet. The deal means Gemalto will manage the secure element on Isis phones, overseeing the transfer of payment credentials from banks and payment services to the Isis wallet application on phones.

Gemalto will essentially hold the payment keys for Isis, controlling which service providers are able to tap Isis for contactless payments. It won’t participate in the actual transactions but will enable a host of applications, from payments to coupons and loyalty cards.

The deal is an important step for Isis, which is moving ahead toward a launch in the first half of 2012 in Salt Lake City and Austin before a larger nationwide roll out. The joint venture will compete with Google Wallet, which launched in September with partners Sprint, MasterCard and Citibank and First Data as its trusted service manager.

45 mobile operators have pledged their support for subscriber identity module (SIM) based Near Field Communication (NFC) implementations in an announcement made by mobile industry trade body the GSM Association (GSMA).

The large existing user-base of low-cost, mid-tier, NFC-less feature phones popular in emerging markets is a prime target for this technology. However, technical difficulties have prevented the adoption of SIM-based NFC. As the SIM card slot is located behind the battery, radio signals to and from the NFC module are effectively blocked in many phones.

Potential applications for this technology include mobile payments, public transit access, event ticketing, secure access to buildings or vehicles, identification, and person-to-person (P2P) data sharing.

Social media could transform the NHS and other public services in the same way that file-sharing changed the music industry, a conference has heard.Growing use of tools, such as Facebook and Twitter, offered an opportunity to reinvent services, delegates heard. “It’s happened to the music and travel industries and it’s going to happen to public services,” said Dr Paul Hodgkin, founder of the Patient Opinion site that organised the MyPublicServices conference. He said that conversations about people’s experiences with public services were going on all over the web and needed to be taken into account.“This is about turning things upside down so the thing that looks like a deficit, your experience, becomes the gift you have to give to other people.” “I’m not sure that the government can re-engineer itself from the inside out,” he said. “It’s going to take the demands of people to force it into shape.” Read more at news.bbc.co.uk

(http://www.researchandmarkets.com/research/f92935/global_mobile_br) has announced the addition of the "Global - Mobile Broadband - Location Based Services Insights" report to their offering. Despite the hype regarding this technology since around the year 2000; we have just recently begun to see applications for this technology become available to mass audiences. This is thanks to services like FourSquare and Facebook Places offering users the ability to check-in. The future of mobile Location Based Services will continue to emerge as handsets with smarter capabilities, new apps and user interfaces continue to permeate the market. This report provides a broad global overview of trends and developments in the mobile location based services industry, including a brief overview of GPS.

For more information visit http://www.researchandmarkets.com/research/f92935/global_mobile_br

SHAPE Services, a leading mobile app developer best known for its IM+ All-in-One Mobile Messenger app, today announced that their new location-based messaging service, named “Neighbors,” is now available as a free update to its IM+ Mobile Messenger.With “Neighbors”, user can now find new real life connections and friends, buy and sell local services and goods using an interactive map, chat with local friends as well as initiate conversations with other people who are nearby, and publish and view local offers and announcements as status updates on their profiles.

Features:Location-Based Messaging Functionality – Allows users to find real people in their local area and easily initiate conversations, catch up with local friends and post local announcements.Location Privacy – Easy-to-understand privacy settings for disclosing user location, which includes the user’s ability to define their location as wide as their house, street or city.Interactive Map – With just a tap of the finger users can see the person’s profile and status, allowing the user to visually identify people around them.

SHAPE Services also plans to incorporate a unique patent pending augmented reality interface that will let the users look around with a 360 degree camera view.

n advertising circles there is an axiom that says that a customer has to be exposed to your product or service at least three times before they will convert. It's called the rule of three. It's why companies run remarketing campaigns. It's also an explanation for two conflicting surveys concerning location based social media.

In the first survey by Dubit, a youth communications agency, they found that 48% of teenagers surveyed had never heard of location based social media services such as Facebook Places and Foursquare. And of the 52% of the teenagers that had heard of these services, few of them actually used those services. The survey consisted of 1,000 teens between the ages of 11 to 18.

The second survey by Comscore's MobiLens showed that 16.7 million mobile users accessed check-in services like Foursquare and Gowalla. And 95% of those users regularly accessed a mobile web browser. The medium age range was 18 to 34. So what's going on? How can teenagers, who practically live and sleep with their mobile phones, be so out of the loop when it comes to location based social media? The answer is that they simply haven't been exposed to the services often enough to see the value.

Damage control: Internet discussion about the service outage that struck Amazon Web Services in April spiked as soon as problems began (April 21st) and again when Amazon explained the cause (April 29th). The data is based on selected mentions on Twitter, blogs, and in online media. Alterian

Just ask Jeff Malek, cofounder of BigDoor, a Seattle company whose game software is hosted on the public servers of Amazon. Last April, problems in a Northern Virginia data center crippled Amazon's northeast operations, affecting many cloud-based businesses. Spotty service over four days left BigDoor scrambling to find technical solutions and issuing a steady stream of apologies to its 250 clients. Since then, BigDoor has joined a growing number of companies that are seeking new ways of building outage-resistant systems in the cloud, often at additional expense and inconvenience.

Even though outages put businesses at immense risk, public cloud providers still don't offer ironclad guarantees. In its so-called "service-level agreement," Amazon says that if its services are unavailable for more than 0.05 percent of a year (around four hours) it will give the clients a credit "equal to 10% of their bill." Some in the industry believe public clouds like Amazon should aim for 99.999 percent availability, or downtime of only around five minutes a year.

The Dutch consortium of major banks and MNOs which in 2010 signed a letter of intent to jointly introduce mobile payments at the checkout in the Netherlands have taken their initiative one step further.

The partnership, which includes financial services providers ABN AMRO, Rabobank and ING as well as KPN and Vodafone, will notify the initiative for approval to the European Commission in Brussels.

It is expected that the EC will communicate its vision in the first quarter of 2012. After that, the consortium can start the actual execution of the plans. It is expected that Dutch consumers can experience payments with their mobile early 2013.