The presentation by Barclays Head of UK Corporate Payments, Mike Walters, at the Association of Corporate Treasurers Cash Management conference on 13-14 February was an important review of some of the main drivers and issues in mobile payments. He started with a chart on 'The evolution of alternative payments - The future of money?':

Source & Copyright©2013 - Barclays

This linking of the alternative payment systems, not just mobile payments, with the emergence of digital currencies and then possible movement to bartering is both interesting and important.

Mike then asked the audience (well paid corporate treasury people and bankers): Do you currently use your smartphone to make mobile payment? Audience response was:

1. I don't have smartphone: 17%
2. My smartphone doesn't have the ability to make mobile payments: 14%
3. My smartphone has the ability to make mobile payments but I don't use it: 42%
4. Yes - I am a mobile payment early adopter: 26%

He pounced on this as another example of how mobile payments are taking off. Other examples he cited were: the forecast that there will be 2.4bn smartphone users by 2015, Internet mobile phone adoption is the fastest growing technology phenomenon ever, Amex are now accepting payments via Twitter, and the forecast that mobiles will be used for $617bm sales by 2016. Treasurers need to remember that these smartphone users are the most affluent section of the population and are the most likely to use mobile payments.

Virtuous circle
Mike then showed how mobile payments have created a virtuous circle:

Source & Copyright©2013 - Barclays

In this circle, some of the key points for corporate treasury are that:

• mobile is becoming a major alternative to cash and cheque, and offers an opportunity for paperless transactions
• gives a new meaning to distance selling
• the remittance data no longer just gives details of the payer but also includes where they were, what phone they were using, etc.??
• companies can choose the payment reference meaning all payments can be allocated to customers if they need to, reducing customer complaints due to payments getting 'lost'
• improved cash flowing forecasting - none of the delays associated with paper based payment methods – payments are immediate and irrevocable meaning exact cash positions are known
• it is a means to pay the unbanked.

Inevitably, Barclays showed a video of their world first: the Pingit corporate collections mobile payments service which provides quick, simple and secure payments, automated reconciliation of funds, irrevocable receipts with immediate value, cost reduction - no paper, and enhanced management information. Importantly, the average transaction value is £71.

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There is no doubt mobile payments are growing fast and companies will have to prepare for multi-channel payment collection. What this intriguing presentation made clear is that to really exploit the opportunities that mobile payments provide, companies need to work out how they will use all the enhanced management information. It is the key to so many insights into customer behaviour and new marketing opportunities.