Techcrunch has an interesting article questioning the value proposition of mobile payments, especifically NFC in this case. Read here…

Even in the Indian context, there have been multiple companies trying to push mobile payments over time, and a clear use case has been missing. Cash or swipe cards function fairly well for physical merchants. Some of the more recent attempts are aiming to reduce the cost of POS roll out – a form in which the mobile device may be used as acceptance terminal, rather than as a replacement of swipe card. That seems slightly more interesting – however, the savings on the acquisition terminal is perhaps only a small fraction of the overall cost of acquiring and managing the merchant base. So its not clear if this technology innovation solves the critical path issue.

Other views?

Alok Mittal

Alok is a first generation entrepreneur, now in the venture capital business. Alok heads up venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Alok is also a founding member of Indian Angel Network - an organization comprising successful entrepreneurs looking to invest in seed stage businesses. Prior to this, Alok cofounded JobsAhead.com, a leading job portal which was acquired by Monster.com. Alok is an active charter member of TiE Delhi. Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.

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