by Yichun Liu
April 19th, 2010
Surveys show that incremental revenues are much more affected by payment conversion rates than by transaction costs. Mobile payment, with its advantages, completes purchases over 67%. Most of such reports present the statistical results. Yet numbers are a fluctuating reference. For a service provider and a marketer, it is crucial to understand not just the effects but the market factors in order to make the business substantial.
Based on our user experiences, here are the four causes that drive people to adopt mobile payment.
It’s EVERYWHERE Mobile phones have worldwide reach and are always within our reach. From the research of Bank of Finland, it shows that the US mobile penetration has passed 91%, with 234 million mobile phone users compared to 176 million credit/debit card holders. It has fundamentally become the can’t-do-without tool that one carries. The accessibility is always the first factor to take into consideration and consumers opt for what’s within their reach at all times.
It’s SECURE Mobile payment allows you to have full control of every single transaction. To ensure the message is coming from you, the purchase is identified remotely using some identifiers like entering the code from the reply message. No more worries on being spied by viruses or Trojan horses that memorize your ID codes and make fabricated payments without you noticing it. With the commands and data input fully under your control, you are guaranteed with total payment security.
It’s ANONYMOUS Mobile payment ensures you a high level of privacy for personal data and preference. We all know that card payment takes your personal information and sends you the bill with product/service names and transaction details. Contrary to that, the only info that mobile payment requires is your phone number. It is anonymous and gives you the privacy of purchasing things that you’d prefer to keep a low profile;)
It’s IMPULSIVE Mobile payment is perfect for impulsive buyers. We buy what we need and what we want. Wanting something doesn’t necessarily equal to in need of it. The complicated card payment process encourages re-thinking whether the product is needed, and more often than not, leads to the withdrawal of the purchase. On the other hand, thanks to the small amount involved in each mobile transaction and the simple buying process, buyers complete the payment instantly without hesitation.
Simple enough: the four causes that consolidate the whole cycle of mobile payment ecosystem. And it only gets better.
Any thoughts on mobile payment? What would you like to know more about it? Speak up and leave us your feedback. As always, Fortumo meets your requests : )
http://blog.fortumo.com/2010/04/19/mobile-payment-ecosystem-cause-and-effect/
Have a website or portal?
Start earning SMS-revenue in 5
minutes! No startup & monthly fee
fortumo.com
