With the world’s mobile industry packing its white shirts,
sports jackets and jeans for Barcelona, consumers – many of whom are in
track suits or suits – have been busily getting stuck in to buying things on
mobile. And it seems that given the right payment mechanisms, they are happy to
spend more than just the normal micropayment for goods and services.
New research from performance marketing company Intela finds
that more than half of UK smartphone users are happy to spend more than £10 on
their mobile phone, while the numbers coming out of ImpulsePay about Payforit
suggest that some merchants are getting around £6 average spend and a
conversion rate of nearly 80%.
Does this mean that mobile payments has arrived? Well, it
already had, I’d argue. What this truly augers is that consumers are readily
spending on mobile, aren’t now limited by price points and have shucked off the
fear of PRS, because no one talks about PRS anymore.
What we aren’t yet seeing are consistent ways in which
consumers can use mobile to buy physical goods – other than using iTunes,
Amazon or other pre-reg card services – especially at the higher end of the
market. That said, I bought a new iPad on my old iPad, which felt strangely cannibalistic,
but at the same time fittingly mobile.
While Intela’s data is heartening and interesting, for the
telemedia community the ImpulsePay Payforit numbers are the real meat here. The
revamped design – which now includes in some instances one click for returning
customers – is delivering huge conversion rates, high spends and some
impressive average spends. No wonder Three’s Rory Maguire has joined in with
ImpulsePay – it will be interesting to see what he can do to increase its
penetration amongst merchants.
It will also be interesting to now see that, with Payforit
gaining some consumer use and trust, whether we are now witnessing the endgame
for PSMS. It still has its uses right now, but could Payforit now that it has a
brand image actually replace it? And what would the consequences of that be?
As I iron my best brogues for MWC next week, I have been
scanning the conference schedule and find that, while there is a lot about
mobile money, mobile payments is pretty poorly represented. I also would be very
surprised if Payforit gets a look in. Shame really, as these sorts of
technologies are the future of mobile payments and, as I argued last week in
this newsletter, are the future of network operators.
4G has singly failed to either fill the Treasury with gold
doubloons or set the business or consumer market alight. It's the same as 3G
only faster really – even the operators know that, that’s why they have only
stumped up £2.3billion in licence fees this time (3G licences went for
£23billion back in the day).
It will be interesting to see what the real talk about all
this stuff is at the new site of MWC. For those of you not going, I shall
report back anon.