ORLANDO, Fla. — Is now the time for mobile payments? Or is thisstill a big myth with no real substance for financialinstitutions?

A standing room-only crowd packed a large breakout room atNACHA's Payments 2014 conference at the Orlando World CenterMarriott on Tuesday to hear talkers address exactly thosequestions.

Moderated by Fiserv SVP Ginger Schmeltzer, the panel consistedof Jeff Dennes, head of digital at $175 billion SunTrust Bank inAtlanta, and Paul Amisano, vice president, electronic moneymovement and emerging payments at $182 billion BB&T inWinston-Salem, N.C.

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Both speakers agreed on a key point: a lot of mobile paymentsalready are happening; they just do not involve mobile wallets.

Amisano indicated a case in point is the wildly successfulStarbucks mobile app which, he said, accounted for 11% ofStarbucks' in-store sales in 2013.

Said Schmeltzer, “We are already seeing a ton of activity on mobilephones.”

Added Dennes, “As consumers get more comfortable buying thingswith their phones, there may be a tipping point when it becomesmore convenient for them to pay at retail point of sale with theirphones.”

He openly worried that the future for financial institutions inthe emerging mobile payments mix is uncertain. “A lot of innovationis happening. Financial institutions may get passed by,” saidDennes. “We have the most to lose.”

Amisano elaborated that as mobile payments and wallets becomemore commonplace, it will become clearer that they are not aboutpayments per se but about enriching the overall consumer experiencewith better rewards and loyalty programs.

He sharply added that a confusion in today's discussions is, “Weare held hostage to the term wallet.”

There is no probable point coming when digitized credentialswill replace state-issued driver's licenses, for instance, andbecause of that, the phone will not soon replace the wallet, atleast not entirely, suggested Dennes.

He added, “The mobile wallet is very real but it is waydifferent from what we talked about five years ago.”

As for next steps, Amisano urged financial institutions, “Getyour cards in as many wallets as possible,” meaning forgerelationships with Google, PayPal, Square and others. The reason:that's a way to fairly easily gain experience in mobilewallets.

Bottom line: mobile payments are happening, now, said thespeakers, and it is up to financial institutions to have a strategyfor staying relevant.

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