Analysts at IDC Financial Insights have announced a new report intended to aid financial institutions navigate the world of mobile payments. The report, "Business Strategy: Mapping the e-Wallet Landscape," categorizes the types of mobile wallets — or e-wallets, IDC's preferred term — and offers advice to FIs on how to thrive in the new world of mobile payments.

"Cutting through the superficial differences between various e-wallet services will allow financial institutions to focus on exploiting the technology to add value for customers and extend their influence into mobile and digital commerce," said Aaron McPherson, practice director for worldwide payment strategies at IDC, and lead author of the report.

According to IDC, e-wallets fall into three categories:

• Proximity e-wallet: e-wallets intended for in-person commerce, usually involving a point-of-sale terminal
• Remote e-wallet: e-wallets used for e-commerce
• Hybrid e-wallet: a proximity e-wallet using remote technologies to effect a purchase at the POS terminal

The new IDC report advises FIs not to attempt to control digital wallets. Rather, it says, they should use their position at the center of the payment ecosystem to focus on the value proposition of providing consumers a digital identity that is consistent across channels.

"With a clear view of the e-wallet market as heading toward open rather than closed models, the ideal strategy is one that is robust under an open model," McPherson said. "This requires the financial institution to focus on leveraging the information it has about its customers to influence their purchasing decisions, and thereby earn the right to charge retailers a commission."

Read more about mobile/digital wallets.