Payment by Cellphone!Because No One Likes to carry cash &credit cards...
Who Likes Big, Bulky Wallets???Our research using SurveyMonkey found that most peoplelike the idea of not having tocarry a wallet. Some howeverare concerned about security....What do we keep in our wallets: Credit/Debit and ID cards,photos of loved ones, change, membership cards, changeAll of this is quickly turning into the "digital wallet"The digitally savvy (people with iphones and androids) areready to make the shift, if we can get over the securityconcerns
Options already out there, Side by side of 4 existing companies offering cellphone payment:how do they compare? Google Wallet, Isis, Boku and Square
From our online research we found:There are differences in what companies offer:A. Payment Options. Either favor one credit card company overanother - making the consumer pick one based on their credit cardpreference. Also, some only offer a paypal type card or do not offerdebit card use. Same goes for customer loyalty cards.B. Phone Type. Some companies only serve iphones while othersoffer both.C. Transaction Costs. How the payment gets handled varies:Some retailers pay direct to the credit card companies (often with a4% fee), an intermediary like Square (2.7% fee), or directly to themobile phone companies.The later option sets up the mobile phone industry to take overcredit card payments which would be a big shift in the industry.Currently there are 2 billion credit card users, but more than 6 billionmobile phone customers (via Boku).D. Advertising. This can be built into the transaction/receipt and ifyou have your phone on while shopping the retailer can wirelesslytransmit offers to the customer.
One of the Most interesting Differencesis how we are able to make Payments: Tap the Phone Swipe a Card Pay with your Phone Number
What is our Market Size in $$$: 200 million wireless subscribers 100 million phones sold each year 3-4 People in the U.S. are wireless users 20,000 retail outlets that accept mobile phone payment Source: Isis 2 Billion credit card users world wide 6 Billion Mobile phone users world wide Source: Boku
What we learned from customers:Yes its great not to carry your wallet for thoseof us into tech....The early adopters are people that alreadyown an iphone or androidWhat we learned from the competition:Its not enough to have the consumer willing to make the shiftBusinesses have to be willing to shift to the new infrastructure. And thatadoption needs to be cost neutral or even a cost advantage. Small LocalBusinesses do not have large profit margins. Any mass-market solutionneeds to fit into both large and small businesses cost structure.Square and Verifone are pursuing small business owners with offers of freeswipe accessories that allow for point of sale transactions (see above) withouta large infrastructure cost and a lower transaction rate.Maybe we could pursue a different angle like....focusing on pre-payment theway that Fandango does. That is not strictly a cellphone payment.
Cellphone Payment - Current Available Use: Google Wallet: Online onlyIts the future, we think that Isis: In Austin and Salt Lake City at approx. 30 retailers ea. Boku: Online currentlyIts worth pursuing with a pivot Square: Retailers - amt. Unknown
Cellphone Payment - Current Available Use: Google Wallet: Online onlyBeta Test Isis: In Austin and Salt Lake City at approx. 30 retailers ea.Partner with Restaurant.com - widely used Boku: Online currentlyand trusted by consumers. Square: Retailers - amt. UnknownTwo limited test markets to validate concept -Los Angeles and San Francisco.Data gathered will be used to determineusage information, work out bugs, getfeedback.