1) What went wrong with online banking.
Online banking has gotten more difficult in 2011 due to the introduction of hardware-based secure devices (commonly known as Chip-TAN, or Smart-TAN). Carrying around a physical device, and then having to optically scan something on a monitor (smartphones tend to be too small), in order to generate a transaction password is not a practical solution for mobile commerce – and users don't tend to like to carry around bulky physical devices (by bulky I mean bigger than a credit card or a smart phone). An alternative, which is not supported by all institutions, is the mobile TAN – an SMS sent to a mobile phone registered to the online banking users. While much more friendly to mobile commerce, this violates the dual-device hardware principle which was supposed to make transactions more secure.
A second issue is the actual online banking portals. Most web portals are designed for desktop monitors, and look horrid on a mobile phone – in some cases they don't work at all on a mobile device, with basic critical flaws such as displaying multiple password input fields and never accepting a login from a mobile browser. Given the potential security issue mentioned above, I'm not convinced that there is particular motivation to correct these issues anytime soon.
2) The needs of online commerce.
Obviously, consumers want easy-to-use payment systems that they can trust and are seemlessly integrated with their normal life. And this hurdle shouldn't be too difficult for online merchants to implement. Paypal is a system that does this rather well for users on the American side of the ocean, however less adequately on the European side of the ocean. I suspect this is due to the fact that direct transfers is a common payment method in Europe, which is not the case in North America (direct transfers are extremely difficult there), which is only supported with considerable delay in Paypal. There are alternative solutions – for example GiroPay or SofortÜberweisung or MoneyBookers – though none of them seem to offer merchants the easy, seamless integration that Paypal does. Of course, convincing users is the next hurdle… but without a nice mobile payment solution, there's still an open niche market waiting to be filled.
Reshared post from +SERVICE Insiders
“Aktuelle E-Payment Trends” – Mobile Commerce und Social Commerce künftig im Aufwind
Das Potenzial von E-Payment und elektronischen Zahlungssystemen am deutschen Markt ist weiter ausbaufähig. Zwar besitzen E-Commerce und E-Payment für deutsche Unternehmen kontinuierlich eine hohe Bede…