Research Notes

Utilization of Mobile Payment

Mobile payment will most probably become a part of everyday life, resulting in an increasing number of payments being made via the mobile phone. The developments in the number of transactions and the fact that the size of the average transaction will increase, will result in mobile payment becoming an increasingly natural method of payment for all sorts of daily needs.
Mobile payment will therefore become an important part of the future mobile market.               
During the past years an increasing number of retail chains have taken a more active role in the mobile industry by launching as mobile providers and many more retail chains are currently contemplating following in their footsteps. The retail chains can take advantage of the new possibilities that arise when launching a mobile provider. One of these advantages is to implement a mobile payment solution that their customers can then use in their stores.
With a mobile offering, retail chains can maintain and expand their customer relationship and a mobile payment solution can generate an increase in revenue for the retail chain. When launching as a mobile provider, retail chains have two revenue sources – mobile traffic and payment fees. Many retail chains are today using various types of coupons or rebates to attract customers to their stores. A retail chain can combine their mobile offering with various types of rebates and offers targeted at their own mobile customers and in that way both attract mobile customers and make it worth their while to shop in the retail chain’s stores.
A mobile payment solution can help retail chains reduce churn, resulting in more loyal customers that will subscribe for a longer period of time, due to the shopping advantages that the customers would lose if they switched to another mobile provider.

Much more information about retail chains doing business as mobile providers is available in our latest report How to get success in the second Generation MVNO Market , that analyses the retail chains future role in the mobile universe and why retail chains need to have a mobile strategy and which market phases the retail chains will go through. Included in the report is an analysis of retail chains’ assets/strengths and risks/disadvantages when doing business as mobile providers. The report examines relevant and inspiring cases that document that the retail chains entrance/involvement in the mobile area is not something that may happen in the future, but is in fact a very current phenomenon that will become even more dominant and visible in the mobile industry over the coming years.

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