Michael Mullagh



Mobile and Payment










Mobile Commerce Risk Factors

Despite significant efforts and investments by large on line, mobile, payment, financial and technology players’ to pursue these mobile commerce opportunities, services and technologies  are fragmented, market adoption has been modest and risks remain. To ignite this market it is important for the players to understand and overcome root cause adoption barriers and risks. Otherwise much investment, and consumer and merchant good will, may well go down the drain
  • A complex ecosystem is required to provide an end to end payment or mCommerce “whole product” . However eco system players sometimes have conflicting and overlapping roles and ambitions, and are not yet collaborating in the interest of their ultimate customers, merchants and consumers, resulting in fragmented and limited offerings
  • Conflicts are exacerbated by clashing views on “ownership” of customers and transaction data. These tugs of war are limiting market adoption. 

  • No de-facto standard interface between the POS and the payment device has emerged. Different players are players are pushing mutiple solutions - NFC, Bar Code, Phone Number Entry, pure/partial Cloud solutions - adding to fragmenation and uncertainty
  • This has resulted in a classic “ chicken and egg” problem – merchants are reluctant to upgrade their POS equipment and back office systems to an unknown standard and service, and Mobile and POS device providers must provision multiple alternative solutions with little scale economics
  • Merchant needs and technology adoption cycles, and Payment industry practices, in particular the variety of international security standards, are not fully understood. 
Balancing Risks and Rewards
The consumer and merchant mobile commerce value proposition is so strong that I believe that these risk factors will ultimately be overcome. In the meantime participants entering or investing in these markets need a clear eyed and expert view on opportunities and on risk factors that will inevitability impact the scope and timing of their returns. Clients developing strategies and plans in this arena will benefit from: my domain expertise; my experience as a President/CEO/COO of two large MNO’s and three growth stage mobile companies, (including a mobile commerce leader); my strategic and operational experience; my analytical, financial and communication capabilities; and my extensive ecosystem and financing contacts .