Mobile Banking Competition

BANKBOX

COMPETITIVE BRIEF

Chicago Lean Startup Challenge | 30 July 2012

Even though we don’t know what our final product
will look like we are putting together a list of
companies that operate in the same space and/or
have similar value propositions.

As we see it that includes the mobile banking space,
anything having to do with p2p payments, and how
people organize groups either around specific events
like a group vacation or for a specific reason such as
splitting the bill at dinner.


Here are the companies that we consider to be our
competition:
Collecting money for group pay
// Pay it Square // Buyvite

Sending people money over the internet
// PayPal // Dwolla
// Chase Quick Pay // Venmo
// Amex Serve // Wrapp
// Popmoney

Mobile Wallet
// Apple Passbook // Lemon
// Pay with Square

Easy mobile banking
// Simple


Companies that focus on collecting money for
group pay:

// PAY IT SQUARE

// BUYVITE


PAY IT SQUARE
Value Proposition:
// Collect money from any group for anything
Description:
//use a collect money page to organize and track payments you're collecting
//notify your friends, donors and attendees that you are collecting for a group
payment, fundraiser or event registration
// your friends, donors or attendees use credit cards, bank accounts, or PayPal
balances to make their payment online
The good:
// connects people who use service with people who pay in person
// embeddable with personal websites
// Facebook app
The Bad:
// online only
// fees (credit cards fees, PayPal fees, pay it square fees
// must use PayPal or credit card(high fees)
How they make money:
// 99 cent fees


BUYVITE

Value Proposition:
// Group pay by collecting money before purchases are made
Description:
// start a buyvite page and invite friends in order to collect money via email,
fbook and sms.
// transfer funds into your bank account
// there is another option where you can pay for things with a buyvite coupon
for merchants that are partnered with buyvite (not currently available)
// charges on peoples cards are only charged once the organizer closes the
group and decides enough money has been raised
The Good:
// mobile and web developed
// invite friends through many channels
// transferring money to your bank account is free
The Bad:
// takes time for transfer to process (1-3 days)
// admin fees (3.5%)
// Buyvite Account Members agree to pay a service fee of 3.5% of the
transaction price per Buyvite contribution.


Companies that facilitate sending people
money over the internet:

// PAYPAL // DWOLLA
// BUMP PAY // VENMO
// AMEX SERVE // CHASE QUICK PAY
// WRAPP


PAYPAL
vs. DWOLLA

Description:

// allows people to send money // empowers anyone with an
without sharing financial internet connection to safely
information to other people (p2p) send money to friends or
// allows merchants to accept businesses.
payments from consumers (b2c)
The Good:

// extremely large network of
// cheaper than PayPal
users

The Bad:

// high fees
// not well known to merchants
// users aren’t satisfied w/ policies
or average people

// takes 2.9% + $0.30 per // take $0.25 from receiver
transaction of any transaction over $10


VENMO

Value Proposition:
// send and collect money from with your friends over SMS, email, and Facebook
Description:
// pay friends back with their mobile app
// invite friend to pay you or to pay them via sms, email or fbook
// pay for things at select merchant stores with venmo
the good:
// transfer money in multiple ways (venmo accts, bank transfers, credit card)
// only fee is for credit card
the bad:
// requires you to have their app to collect money
how they make money:
//charging vendors a small percentage to be able to accept venmo
//holdings (venmo is transferring $10mm a month)


BUMP PAY

Value proposition:
// Send and receive money from people using bump tech
Description:
// Two people with iPhones can bump phones and send/receive money to their
PayPal accounts
the good:
// comes with PayPal's security
// you don’t need to enter any financial info
the bad:
// have to use PayPal and the fees PayPal incurs
// $1000.00 limit
// internet connection needed
// only iPhones can use it
// People have to be an arms distance away
// both people need Bump Pay
//they currently don’t on Bump Pay


AMEX SERVE

Value proposition:
// send, receive and request money from friends via email/txt/fbook
Description:
// With a Serve account you can transfer, send, receive and request money
// attach a debit card to this account to use at merchant stores
the good:
// debit card that is hooked up to account
// service and security of AMEX
// free to receive money from another Serve user
the bad:
// its a separate account that you need to fund from your regular bank account
//more people are using AMEX
// 2 dollar fee for withdrawing at an atm
// 2.9% + $0.30 fee on loading/receiving money onto your Serve account


CHASE QUICK PAY

Value proposition:
// pay another person from your personal banking account over txt and email
w/o fees
Description:
// As part of the mobile banking app you are able to pay or request money
from another person money regardless of their personal bank
the good:
// only one person needs to be part of chase
// channels are email/sms
// secuirty and service that comes with Chase
// no fees
the bad:
// someone has to be part of chase
// goes into someone's bank account so that a group would need an official
bank account
// offered as a service for chase members


WRAPP

Value proposition:
// give free and paid gift cards to your Facebook friends
Description:
// send a free or a paid gift card to your friends on Facebook to say thanks, get
well, or anything
// send an amount of $ to a friend with which they can choose to allocate to the
gift card of their choice
// the gift card then can be used at stores via smartphones or online
the good:
// virality effect from Facebook, people see it on newsfeeds and can join or send
other cards
the bad:
// can only choose gift cards from the merchants partnered with Wrapp
// a cut of total redemption amount


POPMONEY

Value proposition:
// send, receive and request money from friends via email/txt
Description:
// using your Ally bank account login and instantly send money to
anyone in the US through an email or a txt
the good:
// customer support and security of Ally bank
// can send/request an invoice from anyone including ppl who don’t use
Ally
// no fees
// don’t see financial info of either parties (added security)
the bad:
// not mobile
// offer it as a service to engage their consumers


Companies that are attempting easy joint bank
account solutions:

// SIMPLE


SIMPLE (joint bank account feature)

Value proposition:
// Banking without the red tape
Description:
// Simple is a company that offers all the features of regular banks with
less hassle. (FDIC insured accounts, atms, transfers, checks, security,
mobile platform, etc)
// they are planning on releasing a joint bank account feature soon!
the good:
// an easier way to set up a joint bank account than traditional banks
// comes with a credit card (accepted everywhere Visa is)
// few fees
// security and service of big banking
the bad:
// not currently available
// while its easier to set up than a traditional JBA it’s still an application
process
// offered as a feature to get more customers
// interest margin and|interchange (by being a bank)
Chicago Lean Startup Challenge 30 July 2012

There are many companies that now offer p2p payments and there are
many more that are beginning to break into that space. This includes
the big names like PayPal and is now becoming a feature of most of the
big name banks. E-commerce companies are also starting to offer this
feature including Amazon.com and smaller companies that specialize
in this feature like Venmo. Some banks are building/buying their own
platforms for this and others are building on top of existing platforms
such as clearXchange.

While we still do not know what BankBox will ultimately look like we do
not consider it to be a p2p platform. We are looking at BankBox less in
terms of paying someone back for a one time IOU and more in terms of
splitting the cost of an event or a reoccuring cost structure.

It might help to think of us as a simple joint bank account for groups
with an expiration date. Either for a couple who isn’t ready to enter into
a joint bank account through the big bank channels but may want to
split groceries or for a group of ten friends planning a bachelor party.


THANK YOU!
@harrislevine
@naterock101

Mobile Banking Competition

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