RBC MOBILE WALLET

Topic:

• For RBC Mobile Wallet, Royal Bank of Canada is changing the way customers shop. With RBC
Secure Cloud, customer data is stored on his RBC server, eliminating the need for a SIM card
(Subscriber Identity Module). This cloud-based storage will change the payments industry
forever.

• Customers could use their mobile devices to make payments with the RBC Mobile Wallet at
any time and from any location. All credit card information is stored in the app, which takes
the role of the conventional physical wallet. Additionally, it enables quicker purchases than
its conventional version; a purchase can be performed by waving your phone over a POS
terminal.

Problem Statement

• The main dilemma is “Whether or not to go through with their recently developed RBC
Secure Cloud”.

• RBC is examining its options regarding the freshly created RBC Secure Cloud. The main issue
raised in the case study is whether RBC should abandon the SIM card-based platform and
run the first-ever cloud storage system in the payments business. The fact that every
telecom operator and payment network supports the SIM card platform, is one of the
problems. Alliance dissolution is another danger. The case suggests that the payments sector
places a high value on alliances. RBC would probably be severing some ties if it abruptly
switched to a cloud-based storage strategy.

Alternatives/options:

1. SIM Card – Based mobile wallet

2. Cloud – Based mobile wallet

(Being the only company not on the SIM card system)

Analysis of the alternatives/options and impacts:

1. SIM Card – Based mobile wallet

● The fact that every telecom operator and payment network supports the SIM card platform,
is one of the problems.

● The payments industry values alliances heavily.

● The SIM card makes use of a wireless network provided by a telecommunications provider.

● If SIM card system stays as the gold standard in the payments industry, then this will be a
major setback for RBC and could result in loss of revenue.

● The provisioning process, which involves loading a single card onto the SIM card, might take
up to 60 minutes. The failure rate for loading the cards was substantial. The user experience
was impacted by the delay because the provisioning had to be done by the user.
2. Cloud – Based mobile wallet

• Being the only company not on the SIM card system.

• Switching to a cloud-based storage system RBC would most likely be breaking some
alliances.

• This would significantly cut costs while providing a better user experience. There wouldn't be
any worry about storage and renting space on a SIM card.

• The cloud would lessen reliance on a wireless partner, reducing its engagement to an applet
needed for traffic management.

Provisioning could be completed using RBC Secure Cloud in less than two minutes, with a success
rate of 99.9%, and it only needed to be done once.

Conclusion:

• I advise following the system through. They will have an advantage in the payments sector
by implementing this today because it is without a doubt the method payments will be done
in the future.

• The capacity to make mobile payments is just one of the numerous global issues that
technology has influenced. People are using mobile payments more often all across the
world, which has prompted some businesses to develop strategies for tapping into this
lucrative industry. RBC has made an effort to forge its own path toward adopting mobile
payments, despite obstacles including data security. RBC needs to improve its security
system, collaborate with other organizations, and engage in customer awareness in order to
fully capture the market.

• It makes it so much easier for customers to do their banking while cutting costs for the bank.

• By the time adolescents reach the legal age to begin making payments, they will be well-
acquainted with technology, which will lead to a huge growth in the mobile wallet business.
RBC will only gain in the long run by starting the cloud storage today. This innovation is going
to revolutionise the payments sector, and soon other banks won't be unhappy that RBC
broke partnerships and stopped storing SIM cards; instead, they'll be rushing to RBC to
discuss moving their institutions to the cloud. In conclusion, I think this will be good for RBC
as a business.