Mobile Payments : Revenue Models and Market Strategies

Summary

Mobile Payments: Revenue Models and Market Strategies, a Thematic Research Report by Pyramid Research, examines the predominant service and revenue models in the mobile payments arena, as well as the market approach of selected players, in order to identify effective strategies and key success factors. The analysis is built upon in-depth case studies of selected mobile payments services around the world, including Alipay Wallet, Boku, Dwolla, LevelUp, RURU, Paym, Starbucks and Apple Pay. Our analysis concludes with recommendations on best strategic approaches to maximize the mobile payments revenue opportunity.

Key Findings

• One of the key challenges presently facing the mobile payments market is the high level of market fragmentation, defined both by the multiplicity of platforms/solutions technologies being deployed and the increasing range of service configurations being offered. This slows down merchant acceptance and makes it difficult for providers to gain scale. We expect the market to reach a point where consolidation among players and solutions becomes the best way to drive address this issue.
• Mobile payments are gaining momentum, yet still represent a small portion of total consumer payments. The main barriers to consumer adoption are security and privacy concerns. It is critical for new mobile payments schemes to address this issue and earn consumers’ trust from the start with secure schemes and straightforward use cases.
• Value-added models are becoming popular in the mobile payments arena. We see several players starting to monetize data-driven campaigns engines. Some of the value-added offerings take the form of white-label applications development for vertical industries. We expect this type of model to proliferate given the benefits it brings to all parties.
• The key to successful m-payment applications is the ability to make them pervasive, so users grow to rely on them. Partnerships with ecosystem participants from all sectors (banks, retail, service providers and public sector) are essential to building a ubiquitous network of acceptance points. In addition, having a well-defined pipeline of compelling use cases is key for mobile payment providers to leverage the ecosystem to growth their user base and drive transaction volume.
• To build a viable business amidst the wealth of competing solutions and applications for mobile payments, players must take a strategic approach to the market. There are a number of best practices to generate consumer uptake of mobile payments services and build transaction volume. These focus on four key elements specific to the end-user and merchant’s value proposition, the use case strategy and cross-sector partnerships.

Synopsis

The “Mobile Payments: Revenue Models and Market Strategies” report offers an in-depth examination of the global mobile payments ecosystem dynamics, revenue models and market strategies, highlighting unique challenges faced by the sector and best practices for effectively positioning mobile payments propositions. The report reviews supply and demand considerations for mobile payments providers, and provides specific examples of prevalent service and revenue models, and go-to-market strategies, through case studies of mobile payments players from Belgium, China, East Africa, Mexico, Russia, Sweden, the UK and the US.

The report is structured as follows:

• Section 1: Mobile Payments Market Context, provides an overview of the mobile payments ecosystem and solutions value chain, the companies entering the value chain, supply side constraints and opportunities, and the consumer perspective.
• Section 2: Mobile Payments Strategies examines consumer and merchant use cases and describes the various service and revenue configurations being offered by mobile payments providers around the world, including legacy revenue models, value-added models and closed-loop revenue models. Pros and cons of existing revenue models are illustrated with case examples of selected market players such as America Móvil, Bitcoin, Boku, Dwolla, iZettle, Kopo Kopo, LevelUp and MCX.
• Section 3: Mobile Payments Provider Case Studies is a detailed analysis of the strategic market approach to m-payments from leading players around the world: Alipay Wallet (China), RuRu (Russia), Paym (UK), Starbucks (US/global) and Apple Pay (US/global).
• Section 4: Key Findings and Recommendations. We conclude with a summary of key findings and specific success factors and recommendations for mobile operators looking to increase participation in the mobile payments space.

Reasons To Buy

• The “Mobile Payments: Revenue Models and Market Strategies” report provides a comprehensive examination the nascent mobile payments market opportunity to help executives make informed strategic decisions, develop effective partnerships and optimize return on investment.
• This report provides an in-depth overview of service and revenue model trends in the mobile payments industries, their advantages and limitations, and the related opportunities.
• The report incorporates case studies providing light on the key elements of a strategic market approach to maximize the mobile payments opportunity, and best practices to build robust user and merchant propositions, through compelling use cases and ecosystem partnerships.