News and insights from this week in the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Aite on Bill Pay Channels and Methods: According to a new report by Aite, online and mobile payments will account for nearly half of all bills paid in the US in 2013. Online payments already account for 45% of bill payments; 30% of these bills will be paid via a bank site, but 69% will be paid via the biller’s site. Mobile currently accounts for just 3% of bill payments but Aite notes that device adoption happens faster than behavioral changes, and banks’ and billers’ development of better bill pay capabilities will increase consumer demand for the functionality.
Ron Shevlin on MCX Economics: Aite analyst Ron Shevlin wrote an article in Snarketing 2.0 asserting that retailers will probably end up paying more than the 0.8% fee per debit card transaction to get the MCX consortium off the ground. He estimates that merchants will actually pay about 1.7% per transaction, thanks to the advertising campaigns and discounts likely needed to get people to use the MCX payment app instead of their credit cards.
Monetizing Mobile Deposits: Jim Marous’ bank marketing strategy blog explains how financial institutions can rationally charge fees for mobile deposits. Consumers may be willing to pay for new and emerging premium services such as remote mobile deposit – which are perceived as acceptable “value-added” services – much more readily than they would accept paying fees for traditional services such as checking accounts.
The key to success in generating revenue from mobile deposit programs is to 1) communicate the value of the service, 2) provide customers the option of not having to pay (or use the service), 3) reinforce the importance of 100% acceptance of the process to all internal teams through education, mandate and incentives, 4) continuously market the service, 5) build a segmentation strategy and 6) measure results.
Intuit Partners with Square: Intuit is offering Square customers a way to push data from their mPOS readers into Intuit’s QuickBooks accounting software. Intuit already offers its own mPOS service that integrates into QuickBooks directly.
Facebook Goes Live with Mobile Commerce System: The in-app purchase system first trialled in August went live recently, albeit with only two retailers. The Autofill With Facebook button will use personal details, including credit card numbers, already stored in their system. Facebook is working with Braintree on both live apps and has a commitment from PayPal to join the test.
eBay Click and Collect Deal with UK Retailer: eBay and Argos (a big UK homeware player) announced their joint Click and Collect service last week, to be launched first in the UK. Shoppers can buy online from eBay and select a physical store where purchases can be delivered. If the online retailer doesn’t have physical stores of their own, deliveries can be sent to an Argos store. At the same time, eBay said it is bringing its same-day delivery service (eBay Now) to the UK.
I will be at the Money2020 event in Las Vegas next week (Monday- Wednesday). Stop by the Monitise booth (#432) and say hello!