Qualcomm to buy mobile banking solution

Qualcomm has announced plans to purchase Firethorn, a mobile banking solution provider for $210 million in cash. While Qualcomm claims that the acquisition is meant to “help financial institutions accelerate consumer adoption of mobile banking services”, it has the potential to assist the company to go beyond mobile banking into the mobile payment and general financial transaction arena. Firethorn is still riding high from recent deals with both AT&T and Verizon Wireless. The acquisition will allow Qualcomm to connect mobile phones directly to banks accounts – a strategic, early investment in a platform with future potential. On the flipside, the problem of exclusive partnerships between carriers and banks is likely to put a dent in the multi-bank, multi-carrier model that mobile banking really requires to be successful.