1. Colin White
December 2011
VicaW ©

2. Bigger Pipe = More Money
Better Conversion = More Money
More Customers = More Money
More Territories = More Money
VicaW ©

3.  Premium SMS
 Premium Voice
 Online Operator Billing
 Paypal
 Credit Card
 App Stores
 Near Field Communication (NFC)
VicaW ©

4.  Online games
 Social networks
 Virtual goods
 Services
 Physical goods
 Information & Alerts
 Transport & Parking
VicaW ©

5.  19 million UK households connected to Internet *
 Almost half via mobile data connections*
 71% of 16-24 year olds*
 31% of UK adult now owns a smartphone
 14% of UK adult now owns an iPhone
VicaW © *Office for National Statistics Internet Access 2011
~ Ipsos MediaCT Technology Tracker 2011

6.  Simple Txt to Buy Model
 Subscription Model
VicaW ©

7. 1. 2. 3. 1. User clicks
“Get game”
2. Pop up
payment
window
request
mobile No
5. 4. 3. Code sent
via Txt
4. Code input
into
payment
window
5. Payment
complete
game
downloaded
VicaW ©

8.  0871/2/3 cost anything between 5-10p per
minute
 09XX Premium rate numbers charged at any
rate up to £1.50 per minute & there can be a
connection charge up to £1.50
VicaW ©

9.  150 million customers, 5 million on mobile
 Recognised Brand
 Safe secure
 Easy & cost effective to set up
 Easy access to your money
 Can integrate into iPhone & Androids
 What it costs
◦ 1.4%-3.4% plus 20p
VicaW ©

10. Critical Factors PSMS Voice Credit Card Online Mobile
Price Points Few Few & Limited Unlimited Wide & Flexible
Accessibility for
Ubiquitous Ubiquitous Limited to 18+ Good
End User
Charge Backs Low Low Expensive Low
Conversion Rates High High Low Medium
2-4% with a
Costs 20-50% 30-50% 20-50%
transaction fee
VicaW ©

11. 1000 customers with £5 download
VicaW ©

12.  US: Google launches mobile wallet May 11
 UK: Orange and Barclaycard Launch 'Quick
Tap' NFC Service May 11
 UK Mobile Operators announce JV to deliver
mobile wallet & payments Jun 11
 Apple launches Easypay Nov 11
 Telefónica launches a Blackberry NFC trial in
Spain Nov 2011
There is technological wave sweeping across the world that will really hit the UK in 2012
VicaW ©

13. “Mobile Payments are reaching a tipping point in
Europe: we believe that 2012 will be the year that new
payment technologies such as mobile and contactless
achieve mainstream consumer acceptance”
Peter Ayliffe, CEO Visa Europe
“The mobile transactions market in Europe
alone will grow to €4Bn -€5Bn by 2013”
Frost & Sullivan
“Mobile payments for physical
goods will exceed $170 billion
worldwide by 2015. This is
nearly treble the $60 billion
forecast for 2011”
VicaW © Juniper Research

14. 1. Payment flexibility – give them choice
2. Get a mobile site to cater for mobile surfers
3. Check out the competition
4. Try out new ideas & keep trying
5. Review your metrics regularly
6. Test & test again your payment cycles
7. Give customer feedback priority
8. You need to innovate unceasingly
VicaW ©

15. VicaW ©