Telco payment for startup companies


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A first introduction for startup to integrate with telco payment method.

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Telco payment for startup companies

  1. 1. Payment with TelcoAlternative payment method that can boostyour apps purchase in emerging marketsAnton Rifcoanton.rifco@gmail.comSaturday, 4 May, 13
  2. 2. Why Telco Payment?Your potential customers in emergingmarkets most likely doesn’t have CCThere’s “only” 7.8 mio CC holders in Indonesia*. Thepopulation there is 240 mio (3000% of its CC holders).While the forecasted mobile penetration will be 173.5%by 2017**Too many CC Fraud cases in Emergingmarket, which makes VISA & MasterCardreject transaction originated from there* )**), 4 May, 13
  3. 3. Why Telco Payment?Because it’s convenient for usersSaturday, 4 May, 13
  4. 4. Type of TransactionsSMS purchaseUsers send SMS with “keyword” to specific short-code (4545)USSD purchase• Users press USSD short code *123*1*2# then press call. Or...• Users enters tree based USSD (UMB) on short code *123#WAP (browser-based) purchaseUsers click purchase button in a specific websiteSaturday, 4 May, 13
  5. 5. How to ?Different telco has differentimplementation for the integration.But.. these are the common generic flows:• Incoming MO (Message Originating) with trxid• Charging Request in MT (Message Terminating)• Charging Response (DN) arrives within few secondsSaturday, 4 May, 13
  6. 6. How to ?Some other Telcos implements:• MSISDN* detection in HTTP headerHTTP_X_UP_CALLING_LINE_ID• One-time-password method (sms) per eachtransaction• HTTP redirection to Telco’s WAP gateway to detectMsisdn / perform the charging*) MSISDN, Mobile Station International Subscriber Directory Number. Or, known as phone number in international format,+62812222Saturday, 4 May, 13
  7. 7. ProblemsDue to the inexistence of standardacross Telcos, it’s very hard forContent Providers (CP) to dointegrationNormally Telco wants bigger portion(>50%) of the revenue share,especially with new players (CP)*) Content Providers (CP) is the company to provide the value added service to end users (e.g. game, ring back tone,etc.)Saturday, 4 May, 13
  8. 8. Alternative for CPDue to the problems mentionedearlier, Normally smaller CP* goes tobigger CP for the payment integrationThis way, those smaller CP only gotvery small portion of the revenue*) Content Providers (CP) is the company to provide the value added service to end users (e.g. game, ring back tone,etc.)Saturday, 4 May, 13
  9. 9. Situation in theTelcoIn the era of communication, servicesare provided by websites and appsThose services override most Telcoservices, such as callings,messaging, and even value addedservicesTelco seems to have sad future,becoming dumb pipes :(Saturday, 4 May, 13
  10. 10. The Telco WaysTelcos are struggling to find ways tobecome smarter pipes :)To act smarter, they need to takesmarter strategiesEspecially, for the messagingchannel, instead of giving away freesms promotions, they can alter theSMSC* resources to Content App*) SMSC, Short Message Services Center, centralized machine to manage the text communication b/w subscribers, orsubscribers to applicationsSaturday, 4 May, 13
  11. 11. Telcos for StartupToday is the era of start-ups*More startup, result in more servicesStartups need alternative of paymentsystem that can reach every people(remember, most people own phone)*) startups or Startup Companies, is a company, a partnership or temporary organization designed to search for arepeatable and scalable business model.Saturday, 4 May, 13
  12. 12. Telcos for StartupIf only Telcos can reducebureaucratic process in their PaymentSystem integration, they can havemore partnersMore partners result in well-occupiedresourcesThen, they can reduce their revenueshare to <20%. pleaseee... :)Saturday, 4 May, 13
  13. 13. Resurrection ofTelcoSaturday, 4 May, 13
  14. 14. Thank youThe writer is a telco and startup enthusiast and practitioner.He worked in the biggest Telco company in Indonesia, one of the biggestTelco vendor in world, and in a Singapore-based Content Provider. Currentlyhe’s starting his own venture in digital tourism industrySaturday, 4 May, 13