Reasons behind Nokia’s Exit of the Mobile Money Business.

The news of Nokia’s exit of the Mobile Money business caused quite a bit of a disturbance amongst some Nokia fans. One of the main reasons is that were wasn’t any clear answer for the decision by Nokia.

http://mynokiablog.com/2012/03/12/nokia-exiting-mobile-money-business/

Whilst we could speculate the logic, there were two polar opposite camps that saw heavily opposing ideas as to why.

This Hindu Times published an article on why Nokia Money was axed.

http://www.thehindubusinessline.com/features/eworld/article3007049.ece

They reason a difficulty in the maintenance of the service, difficulty signing up and maintaining customers, less efficient and control than the competition. They say Mobile money might have made sense in 2009 when Nokia was trying to branch out in internet services but conclude that the Ovi Strategy did not work in arresting the slide in marketshare (How could it, it was so poorly executed?!).

Under Stephen Elop, The Hindu Times says Nokia is taking the steps to focus its energies, exiting non core areas and concentrating on building devices.  Apparently, prospects in mobile money was not high enough to include in the new strategic focus. Whether this is a good or a bad thing, THT can’t say one way or the other.

Whether this strategy pays off or not is yet to be seen but Nokia’s decision to terminate its mobile money business could just turn out to be the game changer.

thehindubusinessline.com/features/eworld/article3007049.ece

Category: Nokia