Banks, digital wallets, and the future of mobile payments

Today, mobile payments. Actually, digital wallets. This annotation is important because the analysis’ centers around VR Bank HessenLand und Volksbank Mittelhessen introducing their pilot for smartphone-based mobile payment. Due to a payment-commoditization (payment goes from product to feature, see also PayPal and Raisin: payment-commoditization and FinTech-platforms), there is general agreement that mobile payment is to be integrated into another product. Candidates are banking apps, shopping apps, payment apps, and digital wallet. I am pro-digital wallets as they are inherently useful (they are better than analog wallets which are already – very effectively – used for mobile payment), combine the other products’ features and can create better solutions than those (e. g. contain new “things” such as virtual keys or to purchase new things such as parking tickets). Also, I argued that banks’ mobile payment solutions (exclusive for their payment methods) might make sense to them (by shutting out other payment providers they are prioritizing theirs) but not to the customer. As they give customers only a narrow choice of payment methods they turn customers’ payment behavior from paying with a wallet (with multiple payment methods) into paying with payment cards from one specific bank. Additionally, what speaks against such closed