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Growth in m-payments depends on user experience, says paythru
Added: (Wed Oct 21 2009)
Amersham, 21 October 2009 - Achieving the predicted explosive growth in mobile payments in the retail sector depends on providing a positive user experience, according to Martin Porter, Sales Director for mobile payments specialist, paythru. Speaking at the Telemedia 360 conference in Liverpool today, Porter says that while mobile Internet penetration is driving demand for mobile payment systems, many retailers will miss out by not providing a simple user experience and a card-based payment method on mobile phones.
Porter highlighted three things that will tip mobile payments into the mainstream for retailers:
1. A positive mobile retail experience. This should combine an easy-to-use and well-designed mobile site with a simple payment system based on the payment methods that consumers already understand, ie. debit and credit cards. Premium text messages have their place for micropayments, but for consumers to increase their spend over mobile, they will expect to be able to pay by credit or debit card.
2. PCI DSS (payment card industry data security standard) compliance, which governs the security around processing and holding debit and credit card information. This is proving to be a major headache for many mobile companies struggling to meet compliance rules. paythru is already PCI DSS Level 1 compliant.
3. Understanding the importance of impulse and repeat purchases. Porter emphasised that while complex, first-time buys are likely to be done either in person or on the web, mobile payment systems increase the chance of impulse purchase or buying on the move, by offering an instant facility to buy (which could have a positive impact on response to marketing campaigns, for example). This offers the potential for a new revenue stream, as opposed to cannibalising other channels.
According to Gartner, the number of mobile payment users worldwide is forecast to reach 73.4 million this year, with more than 190 million by 2012 (reported in Cellular-News).
Porter said: “In the past, a lot of effort went into trying to develop new payment systems for mobile, such as reverse billing, mobile wallets and premium texts. But people already use credit and debit cards in every other area of their lives, so they expect to use them on their mobiles. Mobile should be another way of consumers accessing the retail experience, and should provide all the same systems – including security – that we expect of other access points.”
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Notes to editors:
paythru is a mobile payment specialist that provides retailers with a new sales channel allowing consumers to purchase what they want, when they want, where they want through their mobile phones.
paythru is confident that m-commerce will shortly reach its tipping point with mass adoption being driven by the ‘all you can eat’ data packages available from all mobile service providers, 3G access and new handsets delivering browsing speeds close to that of fixed line access. The impact of these developments can be seen in statistics from Buzz City (February 2009) with 87 per cent of users accessing the mobile internet more than once a day and 50 per cent accessing it more than five times a day.
For more information please contact:
Kate Hartley
Carrot Communications