Posts tagged Mobile Commerce

Canvas8 event - Mobile Money round-up

Last night Canvas8 hosted ‘Mobile Money’ with David Birch of Consult Hyperion and Anil Malhotra of Bango. For those of you who weren’t able to attend, or those who’d like a quick refresher, we’ve provided a recap of the event’s key points.

Mobile transactions are an increasingly important part of the retail landscape. Ebay predicts that there will be $8bn made in mobile sales in 2012, and Ofcom predicts that mobile retail will be worth $29bn to the British economy by 2021.

As well as the banks and mobile service providers, there are a range of external players innovating in this space, including Square, PayPal and Simplytap. Barclays’ Pingit registered 400,000 users within the first eight weeks of its launch.

Speaker recap:
There has been a movement away from cash to cards and, increasingly, smartphones. This offers innovation opportunities for businesses big and small.

There are more mobile phone subscriptions in the world than toothbrushes.

Smartphones are more than just cashless wallets – they are transaction devices which enable payment processes.

When it comes to mobile usage and mobile payments, the world can be segmented into four main groups: the US and Canada, Korea and Japan, developed markets and emerging markets. Korea and Japan are trailblazers in both fields, with one in six Japanese people using their mobiles to pay for services. In Japan, one in eight people use mobile phones to pay in McDonald’s; in the UK mobile payments in McDonald’s are “rarer than a forged £50 note”.

Mobile transactions provide opportunities for innovation; in Kenya, for example, they have enabled banks to offer short-term insurance policies. M-Pesa accounts for between one quarter and one third of Kenya’s GDP.

Mobile has the potential to be a global payment system; Starbuck’s Cards, for example, are accepted internationally.

Mobile payments offer brands more than swift financial transactions – they can help build brand loyalty as phones combine customer promotions with payments.

In the future, smartphones could house many wallets in one device - ‘the operator wallet’, ‘the bank wallet’, ‘the platform wallet’, ‘the retailer wallet’ and ‘the cloud wallet’.

David and Anil both highlighted how important mobile payments are likely to become over the next few years, driven by technological advancements from companies like Bango, the rising cost of cash and the ubiquity of global mobile phone usage.

Their presentations can be found here and here on Canvas8’s slideshare.

Canvas8 Event - Mobile Money with David Birch

Relationships, healthcare, shopping, and even our identities have been radically reshaped in the digital age. And now money – that commodity so necessary to our everyday survival – is being redefined by the advent of mobile commerce.

The potential of mobile money is significant and is the reason Barclays, Google, PayPal and Visa have all declared their interest in the area; Eric Schmidt announced last year that mobile money was one of Google’s highest priorities.

In our upcoming Canvas8 will welcome respected thought leader David Birch. Described by The Daily Telegraph as “one of the world’s leading experts on digital money”, David will address the future of finance in the digital age, where smartphones are becoming smart wallets that change the ways we conduct everyday transactions, offering exciting opportunities for businesses big and small.

Barclays’ Pingit

Barclays strides ahead of the mobile commerce game with the launch of its new  app Pingit, which enables users to transfer up to £300 into an account using their smartphone. In a short time Pingit will be available for any banking customer in the UK with a current account and mobile number.

Practically, how could it be used?

We’ve all experienced the occasion when, sweating and flustered, you realise you’ve forgotten your wallet. With Pingit your friend can take out cash to cover you and within minutes, using mobile money transfer, you can send the money back to their bank account. 

With 20,000 downloads in just two days, Barclays is undoubtedly on to something. The app has massive potential to disrupt the traditional model of money transfer -  not just between friends and family, but also for small business owners who will no longer be tied to using credit card machines for payments.