Interview with Claire Maslen of the Mobile Ecosystem Forum

The mobile payments sector is rapidly evolving, driven by cutting-edge technologies and innovative solutions that are transforming how we manage and conduct transactions. In this exclusive interview with Claire Maslen of the Mobile Ecosystem Forum, discover how emerging trends, technological advancements, and regulatory changes will shape the industry in the coming year.  

What emerging trends do you foresee in the mobile payments sector over the next year? 

The mobile payments sector is one that continues to evolve and is exciting. The potential for adding value to consumers’ lives and helping them manage their money and finances hasn’t been fully developed yet, so there’s still so much to come. It’s clear that technology is continuing to advance with the introduction of more sophisticated handsets, integration of AI into the operating systems and the MNOs (Mobile Network Operators) continuing to invest in core infrastructure.  

These advances will offer opportunities for anyone developing mobile payment products and services. At the front of this, I think we’ll see the next generation of wallets evolve – at the Apple WWDC last month, there was mention of ‘Tap to Cash’ (Apple’s peer to peer payment mechanism) for the US base initially, but it’s sure to expand and stimulate more activity in the P2P arena.   

Solutions that are built on Open Banking is another area that is going to expand – these alternative payment methods (where a payment could be made direct from your bank to a retailer without using a traditional card), paired with behavioral data, offer retailers the chance to create more personalization to their customers. Our wallets have the potential to become the central repository or ‘vault’ for our secure transactions – payments, identity, entertainment ticketing and loyalty.  

How do you think advancements in technology, such as 5G and AI, will impact mobile payment solutions? 

New technology always presents new opportunities. As an industry it’s important we don’t force the tech debate on our consumers and instead, we talk about new and exciting experiences that will enhance their lives or make things easier.  

New technology always presents new opportunities. As an industry it’s important we don’t force the tech debate on our consumers and instead, we talk about new and exciting experiences that will enhance their lives or make things easier.

AI is a perfect example; for years businesses have been using machine learning tools to help traffic flow, or direct customer service queries; chatbots are commonplace. As these develop many are already equipped with AI. But if we listen to the media, AI is going to rule the world and displace everyone in the workforce. Instead, perhaps this should be reframed; the more sophisticated the AI becomes, the quicker you’ll be able to reach the customer service advisor you need to deal with the urgent issue you’re facing. Or look at how AI can help identify fraud patterns by scanning millions of transactions. 

From an infrastructure perspective 5G offers increased bandwidth and reduced latency. But what does that mean? Take real time payments – how can ‘real time’ ever be real-time, if the network that payment travels over is slow and unreliable? Or imagine being a medic in the field needing to access high resolution imaging immediately, through an unreliable network? Sometimes it’s forgotten how much the MNOs (Mobile Network Operators) must invest, to drive the evolution of our digital lives.    

 What role do you believe regulatory changes will play in shaping the future of mobile payments in the coming year?  

Regulation is significant. Protection for consumers and businesses alike, stimulating innovation and growth by introducing frameworks for efficiencies and also ensuring compliance by all parties in terms of KYC, AML, PEP etc. These are all areas that support delivery of mobile payments. Many of the regulatory bodies offer sandboxes for businesses to work within the safe confines of a development environment, to test ideas and models, but also to learn how to work with the regulator in question. 

What challenges do you anticipate for mobile payment providers in maintaining security and privacy? 

As we bring together more and more systems, the integration points and flow of data across disparate platforms, could present vulnerabilities. But we all have a responsibility for our digital security. Consumers need to be aware of potential scams and attacks, and technology providers must design with security in mind, not as a wraparound or afterthought.   

Consumers need to be aware of potential scams and attacks, and technology providers must design with security in mind, not as a wraparound or afterthought.

20 years ago when we were talking about mobile payments, the discussion was always about NFC and remote ‘scanning’ of our phones in our back pockets and then money being taken from our accounts. Global payment networks (Visa/Mastercard/AMEX etc.) worked hard to create the tokenisation services that now deliver our digital ‘cards’ into our mobile wallets. The number that’s in that wallet is a token of the real card – it’s not the actual card. We had discussions about losing your mobile device with all these ‘cards’ embedded. But as time has gone on and people understand the security, they have learned to trust these solutions and with appropriate care and attention, minimize their own risk.  

There’s no question that the more we drive the digital agenda, and the more connected everything becomes, the potential for bad actors increases. But with education to consumers, Regulators having the correct measures in place to enforce legislation, and with technology providers developing systems that are secure by design, we have the right foundations in place.  

How do you see the integration of cryptocurrencies and blockchain technology influencing mobile payment systems? 

Blockchain is an underlying technology layer which gets bundled in with commentary about Crypto and Central Bank Digital Currency (CBDC). It is a distributed ledger technology. And there are others.   

Cryptocurrencies are heralded as offering anonymity, the value is dictated by the market and of course that presents the potential for more volatility. By contrast, CBDCs are regulated, issued by a Central Bank and are under regulatory oversight. This is the evolution of our existing money. The use case often associated with CBDC is around transparency, speed and reducing the cost of transaction – which really could play into the financial inclusion debate for certain sectors.  

What strategies do you think mobile payment companies should adopt to expand their user base and market reach? 

This is a broad topic and one that could delve into so many disciplines. But in my capacity as an advisor, I always ask people to think about the ‘Why?’. We know there have been solutions that just didn’t work because timing was wrong – sometimes innovation is just too soon. If a business wants to invest in innovation, I will definitely say it’s a slow burn. I’ve been fortunate to work for tech companies who have carved out money and allocated it to create new capability or deliver innovation, they’ve been patient; they’ve allowed people to fail and to change direction. I’ve also worked for organizations who fell off the digital wagon as quickly as they tried to jump on it – they weren’t truly committed and didn’t have the staying power.  Finding the change levers that are influencing your customers or could attract a new base, will mean exploring the macro trends – how our world is changing, how societies are evolving – these are big topics. And even with all the planning, throw in a black swan event such as COVID19, things can be thrown off course!  

How important is the role of partnerships and collaborations in driving innovation within the mobile payments industry? 

Partnerships are hard. And often not from a technical integration or from a commercial perspective. Culturally, you’re asking people from different organisations, from different sectors, with different backgrounds, to come together and work to 1) enhance their existing proposition to their existing base and 2) jointly expand or develop new propositions for new customers. Both businesses need to be clear on their USP and what they bring to the partnership – and they also have to be open to understanding the value of the other party. But when done well, partnering can change the trajectory for both businesses. 

Over the past decade or two, we’ve seen the value that the Mobile and Payments industries have delivered by working together. From delivering financial services to remote, unbanked and underserved communities, to being the primary payment method for some of the world’s leading transit agencies moving millions of passengers into our cities on a daily basis, the role of mobile in payments, has been truly transformative. 

Executive Profile 

Claire Maslen is Programme Director for Commerce and Payments at the Mobile Ecosystem Forum. The Mobile Ecosystem Forum (MEF) is a global trade body established in 2000 and headquartered in the UK with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.