The implementation of mobile payments across the UK requires banks to extend contactless infrastructure to support NFC. In addition, consumers will demand a choice of handsets that support NFC transactions. Nokia has been leading the NFC handset space, but other vendors are starting to make significant investments in the technology. If handsets are to take over from the traditional wallet, manufacturers must also solve a number of current technological restrictions, such as improving battery life and operating systems..
The potential power of new intermediaries such as the Googles, Amazons and E-Bays – often already having their own billing systems and payment mechanisms in place – is set to pose a major threat to the service provider's traditional dominance of the entire value chain. As the industry starts making the long awaited strategic shift from simple survival to positive growth, new challenges continue to emerge. Unless service providers of all shapes and sizes confront these, they're going to be reduced to little more than mere bit-pipe players. However, knowing where you've got to get to is only part of the problem facing operators as they try to transform themselves through the addition of content and applications to their service portfolios...
