Best Mobile Marketing Business: “Trusted Service Manager” (TSM) for mCommerce Mobile Payment Options

Here’s an interesting take from the folks over at SoMo Technologies, Inc:

Interesting Mobile devices incorporating Near Field Technology (NFC) as means of mobile commerce (mCommerce) must contain specific account information personal to that very customer. Who’s going to assume that essential function? Provisioning is the process of getting that data transferred safely, accurately, and securely. But remember that users still must be able to manage their mobile payment accounts, which means user accounts need to also be “serviced”.  Many entities are entering this “Trusted Service Manager” (TSM) role and for good reason – it’s going to be extremely profitable.

In fact, the TSM will essentially control all mobile commerce which at some point in the near future will represent a large percentage of consumer spending. The cell carriers want to assume this lucrative role, but don’t have the infrastructure or data centers that comply with credit card processing industry standards. Existing credit card companies want to be TSMs since they do have the infrastructure necessary, but they don’t have access to complete banking data. Banks would really like to assume a TSM role, but with thousands of banks competing for customers, it’s unlikely that they can service the multiple account feature on a large scale required for mCommerce.  Existing transaction processors may make for a good TSM, but they’ll need to forge new relationships with mobile carriers and expanded relationships with banks to really make the process work seamlessly.

Perhaps the best TSM doesn’t even exist yet – it would have to be a separate organization offering complete and secure service for organizations offering accounts of any size, while processing secure customer data in a quick and efficient manner. Publicly held W Technologies is already making serious in-roads into this opportunity.

The biggest challenge to mobile payment processing is bringing multi-account services to the widening range of mobile devices via a variety of proprietary networks.  This is a huge issue since three things must happen for payment system to be functional: the consumer must physically possess the payment mechanism, the consumers must accept the payment mechanism, and the merchants must accept the payment mechanism.

The reward is that the possibilities for building customer loyalty are limitless when you are the TSM. With mCommerce options such as contact-less stickers and near field technology (NFC), merchants can create their own branded payment instruments, with no affiliation to a credit card association, but serviced by a TSM. They could sell them, give them away as an incentive, or use the sticker for advertising real estate on the back of the mobile device, creating an entirely new stream of revenue.

To borrow a phrase from the legendary Mel Brooks: “It’s good to be the TSM”

Share on Facebook

Related posts:

1. Credit Card Merchant Accounts – Credit Card Processing a Must in Mobile Marketing mCommerce, just as in eCommerce What good is a fantastic mobile marketing or SMS text...
2. Mobile Payment Options and Solutions for Industry Standard Mobile Marketing mCommerce The good news for mobile marketers involved with mCommerce is...
3. mCommerce Mobile Transactions to Exceed $1 Trillion in Mobile Payment Credit Card Processing According to the research firm The Yankee Group, mobile marketing...
4. Mobile Commerce (mCommerce) Mobile Payments a Game Changer With Near Field Communication (NFC) Technology Take a look at your credit and debit cards in...
5. How to Lower Credit Card Processing Costs with Mobile Marketing Credit Card Merchant Accounts One of the more overlooked ways to grow any eCommerce...

Related posts brought to you by Yet Another Related Posts Plugin.