News and insights from the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Business Insider on the Future of Digital: Business Insider’s “The Future of Digital: 2013” slide deck contains excellent charts which show the current state of digital media, platforms and devices, and predict future trends. Mobile is the only form of media consumption growing: 20% of people’s consumption in 2013, up from 12% in 2012. Mobile is now around 20% of ecommerce traffic and 11% of ecommerce sales. Mobile ad prices are still lower than desktop: $0.75 vs. $3.50, which suggests that there is an opportunity for improvements, such as relevant ads to a targetable mobile banking audience. Search is the largest mobile ad category and Google owns the majority of the global mobile search market. 43% of ad revenue at the 20 biggest US companies is digital, which is much higher than the average.
ComScore on 4 Key Online Spending Trends: In a new report, ComScore highlighted the four key trends they believe will influence holiday shopping this year: Social Commerce, Smartphones, Sit-Back Shopping and Showrooming. 50% of US Internet users now access the web using more than one device; in terms of retail spending growth by channel, mobile commerce (+26%) is outpacing eCommerce (+13%), especially in categories such as toys and video games. Evidence for Social Commerce’s rise comes from Pinterest’s sales-per-pin figure, which has risen 25% since December 2012. The report also shows that 44% of showroomers never intended to buy in-store.
US Banks May Start Charging for Deposits: The Financial Times reported that leading US banks claim that they may need to begin charging depositors if the Federal Reserve cuts the interest it pays on bank reserves. Cutting the interest would further squeeze bank revenues, which are already under pressure. Monitise’s Bank Anywhere, Pay Anyone and Buy Anything products enable financial institutions to create new revenue streams, which may lessen the chances that banks will have to levy unpopular fees on their customers. Read More »
Rollout with key regional partners comes as Monitise joins China trade trip with British Prime Minister
Monitise announced that it has deployed and launched, with regulatory approval, its globally recognized Mobile Money platform with full access for Chinese speakers. The initial launch in Hong Kong is a key pillar of Monitise’s plans to extend its services into mainland China.
‘Easy TopUp’ offers a simple, secure and convenient real-time mobile service to top up PCCW-HKT pre-paid SIM cards with payment taken direct from their bank account, as opposed to purchasing vouchers from convenience stores.
The green light to launch the service follows the granting of regulatory approval by the Hong Kong Monetary Authority and comes as Monitise joined more than 100 British companies accompanying Prime Minister David Cameron in China on a trade mission to secure new business opportunities.
“I am delighted that Monitise are joining me in the largest British business delegation to go to China this century,” Prime Minister David Cameron said.
He added. “This Government’s priority is to secure the economic recovery and we are determined to do all we can to help British companies to succeed in the global race. I am firmly committed to playing my part which is why I have taken more than 130 business delegates to China, including Monitise. My aim is to open the door for them in this fast-growing market, creating opportunities for them to expand their business.”
Monitise Chief Executive Alastair Lukies said: “I’m delighted to be in such good company on this trip alongside many leading interests representing British industry, academia and the arts all seeking to strengthen our trading ties with one of the world’s most dynamic economies.”
Lukies added: “Britain plc is perfectly placed to reap the commercial benefits that can be unlocked by enterprising business and technology. With the launch of our first Chinese language Mobile Money service we are proud to be playing our role through collective collaboration with our partners to create new ways to bank, pay and buy via mobile handsets and tablets in our increasingly connected world.” Read More »
News and insights from the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Javelin US Mobile Banking Rankings: According to Javelin Strategy & Research, 73% of financial institutions (FIs) offer SMS text banking, browser-based banking and downloadable apps, and 45% of consumers have accessed mobile banking in the past 90 days, compared to 26% in 2012. Javelin rates Bank of America’s mobile service as giving the best experience thanks to the range and quality of offerings; BBVA offers the best mobile functionality and Citizens Bank and USAA have the best apps. While this gives a detailed look at the breadth of mobile banking functionality in US offerings, one thing it misses – because few banks disclose it – is usability. An app that is accesses 25 times a month by consumers is far more valuable to an FI than one accessed 5 times a month, meaning that pure functionality breadth is not the only way to measure a mobile banking app’s success.
Accenture on Digital Banking: A recent report by Accenture shows that while 26% of bank customers use mobile banking at least once a month, 80% of people claim they will visit branches just as frequently 5 years from now. Full-service banks stand to lose about 35% of their market share by 2020 to competitors with advanced digital offerings.
ath on Small Business Mobile Banking: The ath Power Small Business Banking Study finds that small business mobile customers use mobile banking services more frequently than their retail banking counterparts. According to ath, 66% of small business mobile customers would consider leaving their current bank if they could find an alternative with better mobile banking. The most desired mobile functionality is Credit Card Acceptance at 65% (offered by only 43% of mobile offerings), followed by Credit Checking of Customers (desired by 52% of customers and offered by only 26% of banks). Small business customers are used to paying for banking services and 63% (double the number of retail customers) are prepared to pay for mobile banking.
Europe and United States Slow on Banking Innovation: Jim Marous’ blog uses an Infosys study to examine how banks are prioritizing innovation. 73% of banks in the Americas are increasing innovation this year – less than banks in the Middle East, Africa and Asia Pacific, but more than Europe. Legacy systems and risk aversion are blamed most often for US banks’ reticence to innovate. Mobile P2P payments have been deployed by 29% of banks, mobile location offers by 18% – with a further 51% planning on doing so – and gamification, an interesting way of encouraging deeper engagement, by 9%. Read More »
News and insights from this week in the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
TSYS US Consumer Payments Survey: The TSYS Consumer Payment Choice Study provides good data on consumer online and offline payment choices. Debit cards remain top choice for general spending, with credit cards a close second. Online, credit is the top choice at 41%; however, PayPal has caught up with debit, with chosen by 22% of respondents as their preferred means of payment. Cash-back is the prime influencer for using a payment card more often (65%), followed by discounts of various types (57 – 60%). 12% of respondents have received offers for discounts while checking their online bank statement, nearly all from major FIs. 48% of respondents are interested in receiving special discount offers from their credit issuer based on transaction data.
Morgan Stanley on Square: Morgan Stanley’s equity research team surveyed 380 US small and medium-sized enterprises (SMEs) and concluded that emerging payment providers such as Square don’t pose a near-term threat to merchant acquirers. Only 4% of respondents said they were very likely to switch to an emerging provider, despite 80% of them being pitched to by new suppliers each year. 40% cited price as their key supplier determinant.
Hong Kong NFC: While the Bluetooth-based iBeacon from Apple is generating contactless excitement, NFC continues to plug away. The contactless travel/cash card Octopus has started trials with PCCW and Sony; the project seems to be premised on the hope the consumer is willing to pay HK$100 ($13) for the convenience of having the Octopus card embedded on the SIM of a particular Sony NFC-enabled smartphone. This prompted the ATM switch Jetco to announce that it will provide a common central NFC service (TSM) to its members.
Square Cash: This email-based P2P service saw a lot of press coverage recently. Consumers who have registered their debit cards can send money to others with debit cards by entering a monetary amount in the subject line. Debit card details only need to be entered once, the transfer is in real-time and, unlike the trials, it is free. Currently only available in the US, the service is simple and a good way for Square to build up its network. Consumers may still have concerns over the security of email, but this is a good example of how simplicity presents a smooth user experience, which translates well to mobile. This is also yet another “sliver” potentially being shaved from the bank’s relationship with consumers.
Facebook Ad Profit on iPhones Dwarf Android: A study of more than 200 billion ads showed that mobile ads on iPhones generated 1790% more ROI than ads on Androids. Advertising on Android actually costs more than it makes. This is more evidence that iPhone owners should be the first target for mobile commerce plays, despite Android having more end-users – iPhone owners earn and spend more than Android owners.
Monitise announced today that it has agreed to acquire full ownership of Monitise Asia Pacific Limited (“Monitise Asia Pacific”), its 50:50 joint venture with First Eastern Mobile Investments Limited (“First Eastern”), a leading Hong Kong-based investment group controlled by Victor Chu.
Following the transaction, Monitise will take full control of Monitise Asia Pacific’s 49% stake in its Indonesian joint venture with PT Astra Graphia Information Technology. That partnership, which was entered into in 2011, was created to develop new mobile services for financial institutions targeted at both banked and unbanked consumers in Indonesia.
Monitise Group Chief Commercial Officer Lee Cameron said: “First Eastern under the guidance of Victor Chu has been a formative partner for us, playing an extremely valuable role in the development of our relationships and capabilities in the Asia Pacific region over the past three years. At Monitise, we have a track record for taking control of joint venture relationships to help streamline and simplify the international structure of our global business.”
Lee Cameron, who accompanied UK Chancellor of the Exchequer George Osborne on the government’s trade trip to China this week, added: “We are excited by the growing opportunities we face in a region that has nearly 10 of the world’s top 15 countries by population and markets with the highest new mobile subscription rates globally.”
From a regional base in Hong Kong, Monitise is currently working with local partners PCCW-HKT mobile and JETCO, the major ATM switch serving the majority of banks in Hong Kong, to launch new mobile payments services. Bank of China (Hong Kong) will be the lead partner bank and the initial service, which allows the mobile operator’s customers to top up their mobile airtime and data SIM cards, will go live once regulatory approval has been secured. It is based on Monitise’s proven technology platform and will also represent Monitise’s first Chinese language mobile app.
Monitise was named the winner of the Best Peer to Peer Program category last week at the Emerging Payments Awards for its Indonesian BlackBerry Messenger payments service, BBM Money.
Winners were announced at a celebration dinner for both the Emerging Payments and Prepaid Awards, held on October 2 at the Lancaster London hotel. Graham Johnson, EVP Professional Services and Enterprise Engineering at Monitise, accepted the award on behalf of the company.
The Peer to Peer Program category recognizes the best live P2P payment programs and innovations around the world. It was open to any type of solution – whether based on an open loop or closed network, and across cards, mobile, or online.
Developed by AGIT Monitise Indonesia, the joint venture between Monitise Asia Pacific and Astra Graphia Information Technology, part of Astra International Group, and issued and managed by PermataBank, BBM Money gives consumers the ability to create and access a Mobile Money account from their smartphone and make real-time payments to their BBM contacts who are also signed up to the service. They can also buy mobile airtime credit, transfer money to bank accounts, pay bills and make cardless cash withdrawals using the service.
Commenting on the award win, Monitise Chief Information Officer Mike Keyworth said: “We are delighted that BBM Money has been globally recognized as a winner amid such strong competition from other innovative brands. This is yet another example of the power of partnerships that Monitise champions as it works to help its partners make money totally mobile around the world. The service was built and deployed by members of our team from around the world working to launch a truly unique, mass-market innovation. Indonesia is an incredibly exciting market for Mobile Money and provided the perfect environment for BBM Money.”
Click here to view a list of all the Emerging Payments Awards winners.