Complex Landscapes: Mobile Payments in Japan, South Korea, and the United States

This Briefing article will provide an overview of the mobile payments landscape in Japan and South Korea and discuss developments in the United States. Though each country is unique in its progression toward adoption, challenges encountered are similar. Navigating the myriad relationships among stakeholders such as carriers, financial institutions, card issuers, handset manufacturers, etc., while dealing with issues of technology, has proven challenging for all. In Japan, carriers were instrumental in deploying the technology that enabled mobile devices to be used for payments. And businesses were instrumental in developing the platforms that enabled their customers to use them and merchants to accept them for payments. In contrast, in South Korea, though carriers were the first to offer mobile payments, financial institution involvement in offering mobile banking was critical to incenting consumer adoption. Thus far in the United States, several combinations of stakeholders have partnered to pilot mobile payments. Which partnership model(s) will likely prevail remains to be seen.