08/05/2013 by Keith Brown, MD at Paythru
The Mondata article raises some interesting issues on digital wallets ostensibly seen through the lens of the proprietary offers… Google, PayPal etc. However, like the MCX model, there may well be a bigger demand for interoperable merchant wallets.
In this context I define the wallet as something that can store value (money), virtual money (coupons, offers etc) and data/ID (authentication)… maybe even cash? Rather like Apps, consumers are only likely to subscribe if they have an enduring relationship with the brand or service; brand advocates. Rather like the proprietary wallets it supports "pre-payment" albeit legitimately from a card scheme perspective as the consumer, merchant and transaction are all "visible". The key difference is that the relationship and transactional data are owned and can be used by the merchant. A merchant wallet would be the first step to "re-intermediation" allowing the merchant to engage directly with the consumer and bypassing the myriad cash back, offers and competing "show rooming" applications.