7 Reasons Banks Should Build Their Own Mobile Wallets

(Image: ShutterStock)

Consistency Consistency

Banks have to provide a consistent presentation of account features across all devices. By blending a payment function into their own mobile app, banks avoid fragmenting the user experience. (Image: ThinkStock)

Control Control

Some wallet providers, such as Merchant Customer Exchange participants, have made it clear they want control of customer data. If banks want to keep control, they may want to choose a different path. (Image: ShutterStock)

Open Loop Open Loop

Some mobile wallets, such as the Starbucks Card app, are closed-loop systems that treat bank cards as simple funding sources. An open-loop system provides more opportunity for the issuer. (Image: ShutterStock)

Trust Trust

Consumers place a lot of trust in banks, and banks can maintain that trust by being the focal point of consumers' mobile-payment experience. (Image: ShutterStock)

Competition Competition

Mobile-wallet providers such as Isis have made clear that the market can support multiple mobile wallets. If this is the case, banks can build their own wallets without ruling out other partnerships. (Image: ShutterStock)

Distribution Distribution

Banks can control the enrollment process of a wallet they design. However, third parties such as Google are tackling this issue, making it easy for bank partners to enroll consumers in its wallet from the bank's website. (Image: ShutterStock)

Middle Ground Middle Ground

Some mobile wallet providers are hearing banks' concerns. Isis provides a space in its app for banks to design and control, and Google recently updated its Google Wallet to make it easier for banks to participate. (Image: ThinkStock)

Many third-party mobile payment providers, such as Google and Isis, are seeking bank partners for their mobile wallets. Should banks agree to their terms or go it alone?