New Battleground Emerging in the Crowded and Complex Mobile Commerce Marketplace, Finds TMNG Global

New TMNG Global White Paper Forecasts a Measured Mobile Commerce Adoption Rate With Rapid Growth Limited to Discrete Functions


OVERLAND PARK, Kan., Nov. 8, 2011 (GLOBE NEWSWIRE) -- A crowded and complex ecosystem of technology, Internet, financial services companies and wireless carriers is vying to take advantage of the nascent mobile commerce (mCommerce) opportunity, finds a new white paper from TMNG Global (Nasdaq:TMNG), a premier provider of professional services and software solutions to the global leaders in the communications, digital media, and technology industries. Released today, the paper entitled "Mobile Commerce: Jockeying to Create Value?", offers perspective on the complexities and disparities of global trials to date and forecasts a measured mobile commerce adoption rate with only a small percentage of total payments expected to be made via mobile devices by 2015.

According to the paper, while the widespread availability of NFC (Near Field Communications), a wireless technology that facilitates contactless payment, will support the development of many mCommerce services, service adoption will ultimately depend on how consumers and merchants weigh the benefits of mCommerce versus existing alternatives. As NFC technology becomes widely available on smartphones, TMNG Global expects that a growing number of retail merchants will accept NFC payments.

"Clearly, there is a rising global interest in mCommerce with new initiatives that have varied in success by geography," said Rich Nespola, TMNG Global's Chairman and CEO. "As these players struggle to position themselves, define business models, and forge strategic partnerships or engage in M&A activities, the results of the many mCommerce trials globally are cautionary. The battle for the marketplace will be won by those who overcome the twin fundamental hurdles of establishing an integrated and ubiquitous infrastructure and correctly incentivizing consumer and merchant adoption."

While the mCommerce value chain preserves many of the traditional roles for financial services companies, the paper shows how the new ecosystem will create opportunities for new players to enter the market. Specifically, the role of the Trusted Service Manager (TSM) which provides a platform for secure reliable provisioning and management of mCommerce applications has emerged as a key battleground. This central position, bridging between mobile and other solution components offers incumbents leverage in working with partners. Since mCommerce business models involve multiple partners, the key question is how power will be shared and returns allocated. As the value chain evolves, the TSM could exert substantial power and consequently capture significant value.

While the mCommerce market will evolve at a measured rate, TMNG Global expects the greatest potential for rapid growth to be in the following areas:

Large retailers in developed markets expanding the use of on-device applications to drive loyalty. MNOs (mobile network operators) forging partnerships with banks and other MNOs to support domestic and international peer-to-peer transfers and remittances. MNOs offering a subset of basic banking services (e.g. bill pay, check cashing, cash transfers) based on stored value accounts and focused on the unbanked. "The complexity of mCommerce leaves little room for a go-it-alone approach. Success will require multiple cross-industry strategic partnerships, whether from the perspective of building or participating in an integrated infrastructure or from the imperative for demand creation," added Mr. Nespola.