Inside MasterCard’s Three Point Plan for Mobile Payments Success

For anyone out there who’s been thinking about bringing out a mobile payments app, there’s some great news ahead.

A new report out from MasterCard laid out a roadmap to likely success with almost stunning clarity, reducing the needs for success in the field down to just three points. While it may not be enough to make any mobile payment firm a success—particularly if enough firms follow this map—it’s going to be hard to pass up any of the points MasterCard offered up.

The MasterCard study notes that there are really only three things users must have in a mobile payments app: convenience, flexibility, and simplicity. Having these three in place will likely give early adopters a significant edge in the market, and will bring the product right in line with customer expectations.

MasterCard’s study, conducted by Prime Research, covered the responses of fully 1.6 million online interactions across 61 different markets, so it’s safe to say that these result will likely prove universal regardless of the region the mobile payment system serves.

Convenience, flexibility and safety were indeed top priority, and of these three, the one to have above all else seems to be convenience. The other two were certainly important, but convenience had the edge over its brothers on the survey.

However, there were some other points to consider as well. Mobile payments systems may want to consider building in a rewards program of some kind to get the fullest impact, as customers are eager for reward in the process. Also, the range of use is likewise important, as customers want to be able to use mobile payments systems at those places most preferred for shopping.

Carlos Menendez, MasterCard’s executive director for international markets, had a few things to say about the study, noting “The wave of social engagement we see every time new payment innovations are rolled out truly reflects the demand and desire for new and more convenient ways to pay.”

We’ve already seen the kind of impact a rewards program can have, and several apps have already taken this point to heart, giving users discounts on purchases for turning to an app to make the payment. It’s not so much a matter of users needing to be bribed, but rather users needing just a little extra reason to turn to mobile payments. After all, mobile payments are convenient and flexible, and safe on many fronts, but there’s no mobile payment system yet that’s as convenient and flexible—and in some ways even as safe—as plain old cash.

There has to be an inducement, a reason to not use regular cash payments in favor of mobile payments, and that answer is a rewards program. Punch cards are great and all, but they get lost, hard to keep track of. Mobile payment systems know just how many sandwiches you are away from your tenth and free sandwich, and that also adds convenience that cash can’t match.

In the end, it’s clear that there are some points needed in order to make the best mobile payment systems happen. Security, convenience and flexibility are right at the top of the chain, and there’s a lot more competition out there than just the other mobile payment systems in the market.