Mobile Payment Magazine

The Mobile Internet Market in China: Outlook for 2011

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CCID Consulting has released highlights from its new research report summarizing China’s mobile internet market in 2010, and outlook for 2011, where the  company predicts strong growth in the development in the platform businesses along with intensifying competition for users in 2011:

It has been ten years since the start of the mobile internet as a WAP application in 2000. With the extensive construction of 3G networks, the gradual spread of 3G applications and the advancement of Internet Web2.0 in China last year, the mobile internet has began to reveal its huge potential.

2010: Rapid growth in the number of users & an emerging industry landscape.

Mobile internet saw rapid growth in 2010, with the number of users and revenue increasing constantly. According to the 26th Statistical Report on the State of China’s Internet released by CNNIC, as of June 2010, the number of users using cell phone for internet access amounted to 277 million, or about 40% of all cell phone users; among them 43.34 million were newly added in 2010, representing a growth of 18.6% from the end of 2009. The mobile internet revenue continued its fast growth on the basis of RMB 11.2 billion in 2009, and CCID Consulting expects the revenue of 2010 will exceed RMB 15 billion.

As for the terminals and platforms as carriers for mobile internet, hardware terminals led by cell phones also maintained their growth momentum, with annual shipment of mobile phones exceeding 700 million units in 2010, accounting for 60% of the global production. Smart phones and functional mobile phones also gained traction; smart phones saw an increase in its market share, while functional phones were still popular thanks to their low prices and ease of use. Currently, the mainstream mobile platforms include MTK-based Java, Symbian, Windows Mobile, Linux, Android, OMS, IOS and Brew, with the Java platform grabbing the largest share due to the huge number of functional phones, followed by Symbian, thanks to Nokia’s market share and Brew due to its monopoly of Qualcomm in the CDMA market.

The huge number of users helped accelerate the market maturation and business growth, characterized by an increased level of commercialization, continued advantages in entertainment features, and growing value as a tool of communication and information.

Mobile e-commerce represented by mobile payment saw a significant growth in 2010:

  • China UnionPay, in alliance with eighteen commercial banks, as well as China Unicom, China Telecom and mobile phone manufacturers, established the Mobile Payment Industry Union;
  • YeePay, a domestic third-party payment giant, acquired WestPay in Chengdu, ushering in the age of industry reshuffling;
  • Mobile entertainment represented by music, e-reading and games also continued its fast growth. In 2010, China Mobile’s music base in Sichuan contributed revenue of over RMB 10 billion;
  • following Hanwang, SDO leveraged its advantages in online literature to launch its own e.p.book.

Communications and information tools such as instant messaging (IM), mobile community and location services are gaining traction, with the number of active mobile IM users reaching 162 million and the number of mobile browser users exceeding 100 million.

Meanwhile, the business model of application stores is gaining popularity. MM (Mobile Market) launched by China Mobile last year now boasts 80,000 registered developers and 11 million registered users. It has sold a total of approximately 30,000 applications and has seen over 40 million downloads. Platform and mobile phone vendors such as SIKAI and Nokia have set up their own application stores. Diversity of businesses and services content has become a major feature of mobile internet development.

Despite the robust growth of mobile internet in 2010, problems still abound. Services and applications are mainly run on 2G networks while the 3G network are under utilized due to cost and bandwidth limitations; many applications are limited to functional phone plus WAP access uses due to the high prices of smart terminals; a significant proportion of the users are of lower age, poor education background, and low income; the mobile internet vendors have a relatively poor profitability and lack a sound profit model.

2011: Improvement of platform businesses & focus on competition for users

In 2011, the 2G plus WAP-based mobile internet model will become outdated while 3G and www application-based networks will usher in a new era of mobile internet.

In terms of terminals and platforms, smart phones priced around RMB 1,000 or below will encourage users to shift from functional phones to smart phones. With its bigger screen and more fascinating way of operation, touch-screen phones are for a better match for mobile internet and will gain popularity; it is worth noticing whether the Android mobile operating system launched by Google in 2009 will outdo Symbian to become the No. 1 platform; Microsoft Windows phone 7 (Wp7) will make a comeback, and its clout is too big to be ignored; openness will become a major characteristic of the operating system platform.

As for application delivery, with improved bandwidth and cost affordability, bandwidth-sensitive services like video download, video call and real-time monitoring will gradually gain traction. While with improved payment regulations and market environment, mobile payment will become popular in 2011, where mobile phone recharge, credit card repayment, utilities payment, ticket reservations, public transport payment, movie ticket payment and shopping payment may be easily done via cell phones. Moreover, application delivery methods such as application stores and application warehouses are bound to go mainstream, and major vendors’ application stores will generate significant cash flow; the advertising business will also help ensure the lucrative prospect of mobile internet.

Another major characteristic of mobile internet in 2011 will be the intense competition for users, with user access to become the hot spot for competition among vendors. Only by controlling “the first entry” for users can vendors be successful in the cut-throat market competition, no matter whether it is in the case of terminals or applications, platforms or services, instant messaging or location services, browsers or input methods.

Source: CCID Consulting

North Jersey Community Bank Launches Mobile Banking Service

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North Jersey Community Bank just launched mobile banking for customers with personal banking accounts. This new service will enable NJCB customers to access their personal banking accounts via cell phones and handheld devices. Additionally, mobile banking will allow NJCB to tap into the newest generation of customers – those who may never step into a branch, but are looking for a customer-focused bank for all their banking needs.

Mobile banking applications have been developed specifically for those who use the Android, Blackberry, iPhone, and iPad platforms, however, the service will be accessible to all service providers and phone models with an Internet connection.

“Mobile banking provides an innovative, convenient way to bank for our customers on the go,” said Frank Sorrentino III, Chairman and CEO of NJCB. “In this fast-paced, connected world, NJCB is demonstrating its commitment to meeting our customers’ evolving banking needs by offering the latest technology, providing a hassle-free way to manage accounts, and the opportunity to bank from any place they desire.”

NJCB’s customers who bank online will be able to utilize the mobile service to access their accounts to check balances, view transaction history, pay bills and transfer funds internally. Current personal banking customers can request access to mobile banking by logging onto NJCB’s online banking portal, where they can register their device and set up their secure information.

“Mobile banking is a convenient, secure, and easy-to-use method of banking that enables our customers to access their accounts from the palm of their hand. We have developed a safe and secure platform for our mobile banking program and are thrilled to provide this solution to our customers who want the option to bank through their iPad, cell phone or PDA,” said Sorrentino.

NJCB offers a range of financial services for both personal and business customers, and provides other banking products and services, including mortgages, home equity loans and lines of credit, as well as a wide selection of commercial services.

Source: PRNewswire

Fiserv Acquires M-Com to Boost Mobile Banking Offerings

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Fiserv, Inc., a provider of financial services technology solutions,  has acquired Mobile Commerce Ltd. (M-Com), an international mobile banking and payments provider, to enhance Fiserv’s existing mobile channel capabilities. The two companies have been partners since 2008, developing and delivering Mobile Money from Fiserv to hundreds of financial institutions. Financial terms of the acquisition were not disclosed.

M-Com, founded in 2000, is based in Atlanta, Ga., with an office in New Zealand. M-Com CEO Adam Clark and all employees of M-Com will join Fiserv as part of the transaction.

“Technology advancements and consumer usage patterns are converging across online and mobile channels,” said Steve Olsen, group president, Digital Payments, Fiserv. “The acquisition of M-Com will enhance our ability to provide anywhere, anytime access to consumers who want their finances at their fingertips. Together, we will deliver best-in-class digital solutions for our clients, enabling a superior user experience for their customers.”

As strategic partners, Fiserv and M-Com have hundreds of mutual customers in the U.S. and several in international markets, and the combination of the two companies will accelerate the development of innovative solutions for these clients. In addition, Fiserv will have the ability to integrate M-Com mobile banking and payment technology into current product offerings, as well as leverage that technology for transformative new solutions. Current M-Com clients will benefit from Fiserv’s digital banking and payments expertise, deep resources and ongoing investments in mobile financial services.

“Offering robust services through the mobile channel is now critical for financial institutions,” said Mr. Clark. “With the addition of M-Com’s proven technology and deep employee expertise, Fiserv is positioned to continue delivering with excellence in the rapidly evolving mobile space, both domestically and internationally. Together, we will set the pace for mobile banking and payments.”

Source: Business Wire

Clickatell Announces $12 Million Funding Round from Sequoia Capital and DAG Ventures

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Clickatell, has announced it has secured $12 million in a series B round of venture funding led by Sequoia Capital and DAG Ventures. The funding will be used to continue the company’s expansion into new service areas and geographies where automated, just-in-time mobile messaging is powering huge gains in customer engagement and value and opening the door to new mobile transactions. The company provides Personalized Priority Messaging as a service.

Clickatell is a profitable company with more than 13,000 customers that utilize its mobile messaging API’s and global delivery infrastructure to reach and respond to customers across some 869 networks in 223 countries and territories. Personalized Priority Messaging via Clickatell is embedded into virtually any business process to increase an organization’s capacity to offer new levels of customer help and engagement using mobile text messaging (SMS).

“Clickatell was early in recognizing the immense power of mobile messaging to transform the customer experience. With the capacity to reach some 70 percent of the world’s population, Personalized Priority Messaging can help companies of all sizes create more welcoming and helpful brands by delivering just the right message, to the right person at the right time,” said Pieter de Viliers, CEO and co-founder of Clickatell. “We’re excited by our continued relationship with Sequoia Capital and value their insight into various markets and sectors. We are also happy to welcome to our team DAG Ventures whom we enjoyed working with on this transaction. Mobile is the new medium of consumer engagement, and brands from Lagos to London are recognizing this. Clickatell is very well positioned to become an even stronger leader in Business-to-Consumer Mobile messaging and transaction enablement. We are excited by the future mobile has to offer.”

A leading provider to the global financial services industry, Clickatell is innovating new Personalized Priority Messaging-based services to enable financial transactions over the mobile phone in developing countries. In the United States, it is launching a new web-based solution that will enable small and medium sized companies to far more easily deploy Personalized Priority Messaging in their business. Its platform is used by organizations worldwide to deliver targeted, time-sensitive alerts, notification, reminders, responses, updates, answers, verifications and promotions with unprecedented levels of receipt, readership and response.

“Global adoption of mobile messaging as a powerful channel of engagement continues to astound,” said Mike Goguen, Managing Partner at Sequoia Capital. “Some 6.1 trillion SMS messages were sent in 2010, triple the volume of 2007. Clickatell continues to be a leader in this market, with both the vision and the execution capabilities to realize the opportunities inherent in this market.”

“Clickatell is well positioned to take advantage of the continuing growth of mobile messaging in both emerging and developed markets,” said Nicholas K. Pianim, Managing Director at DAG Ventures. “New Clickatell solutions to power mobile transactions in Africa and increase U.S. small business adoption of Personalized Priority Messaging represent exciting new opportunities for growth.”

Source: PR Web

Sutherland and Tyfone Partner in Mobile Banking Services

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Sutherland Global Services, a provider of Business Process Outsourcing (BPO) services, has announced a partnership with Tyfone, a global provider of unified mobile secure transaction infrastructure for mobile banking, mobile identity management and mobile contactless NFC payments.

Over the last twenty years mobile financial services have become the fastest growing distribution channel for financial institutions. Mobile channels have helped to reduce customer attrition and improve customer acquisition and provide new revenue streams.

The partnership combines Sutherland’s financial services domain expertise and global presence with Tyfone’s ability to deliver mobile financial services and mobile payments functionality on a single platform – extending any banking product to any mobile phone on any operating system over any network. The Sutherland-Tyfone combination also provides a means for delivering NFC contactless payment capabilities to customers via Tyfone’s u4ia pre-integrated mobile financial services platform.

“The financial services ecosystem is quickly changing and the ability to recognize and adapt to customer needs and demands plays a vital role in Sutherland’s success in the industry,” stated Dilip Vellodi, Chairman and CEO of Sutherland Global Services. “Tyfone’s technology innovation in the mobile banking industry and expertise in helping financial institutions to leverage the benefits of the mobile platform perfectly complements Sutherland’s specialized services in various Financial Services segments.”

Financial institutions are turning to specialized-services companies like Sutherland to maintain profitability and reduce time-to-market, especially in the current economic environment. By adding advanced offerings like mobile banking and NFC contactless payments, Sutherland enables financial institutions to quickly and easily provide their customers with secure mobile services and at the same time access potentially new revenue streams

“Bringing our proven, patented technologies to Sutherland’s sterling record of providing streamlined, cost-saving financial services is an excellent partnership opportunity for Tyfone” said Prabhakar Tadepalli, Tyfone’s chief operating officer and co-founder. “Through the implementation of our u4ia platform with its available companion SideTap, Sutherland will be able to provide its customers with the tools necessary to deliver a robust mobile banking solution to their clientele, making trusted, feature-rich mobile banking a reality.”

Source: MobilityWire

Mobile Money Summit 2011 – Singapore: June 27-30, 2011

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As the Mobile Money industry continues to grow, this has led to increased access to financial services as well as the development of new financial instruments around the world. Now, more than ever before, Mobile Money products and services are on the rise.

Since its inception, the GSMA Mobile Money Summit has brought together key players from every sector of the industry, providing an environment to forge relationships, expand ideas and foster the growth of Mobile Money.

This year’s event will be held at the Marina Bay Sands, and will include:

  • Conference agenda focusing on the latest topics and developments within the Mobile Money ecosystem
  • Exhibition showcasing innovative Mobile Money products and services
  • Forum for Mobile Money networking and deal making with the C- Level leaders of financial services institutions, mobile network operators, development organizations and solutions providers, as well as regulators and policy makers

Mobile Money Facts

  1. More than 1 billion customers have access to a mobile phone but no access to formal financial services
  2. There are more than 90 live mobile money deployments around the world, 27 of which are in South Asia
  3. Over 80% of these deployments are in developing markets
  4. Research has shown that mobile money products and services create significant revenue benefits not just from transactions but also cost savings from airtime sales along with churn reduction and a rise in ARPU. Mobile Money generates profits.

Week at a Glance
The Conference and Exhibition will be held on 28-29 June, with invitation only events occurring on the 27 and 30 of June. While the event schedule is still being finalized, the week’s events will include:

Monday, 27 June 2011

Executive Regulatory Workshop
This workshop, led by Bankable Frontier Associates, explores the link between regulation and strategy and explains the most important regulatory concepts of mobile money. Attendees work through a case study (similar to Harvard Business School case studies) and participate in a role-play with a Central Bank. In the role-play, participants have to convince a Central Bank to change a given regulation and receive honest and worthwhile feedback from the regulator on the effectiveness of their argument. This workshop is invitation only.

7th Mobile Money for the Unbanked (MMU) Working Group
The GSMA MMU Programme is designed to extend the reach and reduce the cost of Mobile Money services for the unbanked in developing countries. MMU Working Groups gathers the key players within the mobile money industry – mobile network operators, financial institutions, development organisations and mobile money technology providers – so that they can share their latest insights and best practice. This is an invitation only event.

Tuesday and Wednesday, 28-29 June 2011

Conference Agenda
This year’s Conference Agenda will address the most current and cutting edge topics affecting the Mobile Money marketplace. Topics include:

  • Business Models: A look at Emerging Asia
  • Untapped Markets & Opportunities for Mobile Money
  • Perspectives from Banks & Operators
  • Agent Networks: Successful Distribution for Mobile Money

Exhibition
The Mobile Money Summit Exhibition creates opportunities to meet face to face with key players in the Mobile Money eco-system. Here is a preview of some of the companies you’ll meet at Mobile Money Summit:

  • MegaPay
  • MoreMagic
  • Sybase365
  • VISA

Mobile Money Accelerator Classes
The Mobile Money Accelerator classes are back for Mobile Money Summit 2011. Once again these classes are designed for practitioners new the mobile money space with an interest in understanding the roadmap to commercial launch, the required partnerships, investment estimates and the business case. Special focus will be given to introducing and addressing the days conference agenda and providing background material on each of the topics.

This year we will also approach the topic from two angles; that of the mobile operator and that of the financial institution. The classes are open to all Mobile Money Summit Attendees and will run from 7.30am each morning before the main conference.

International Cocktail Reception, sponsored by VISA
Being held on Tuesday, 28 June from 17:30-19:00 after the last conference session.
Join your fellow attendees for a cocktail to continue discussing the topics of the day, make connections and expand your Mobile Money network.

Thursday, 30 June 2011

Leadership Forum – By Invitation Only

More information: Mobile Money Summit 2011

NXPI: NFC chip Maker Stock Soars 130 percent in Three Months

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Tech stocks are flying high again. During the past three months, none has climbed higher than NXP Semiconductors (NASDAQ: NXPI), the leading maker of near field communications chips that turn cell phones into digital wallets. Shares of the Netherlands-based company have climbed 130 percent during that period, more than any publicly traded stock in the world with a market capitalization of at least $2 billion, tech stock or otherwise. [Read more…]

Three Financial Institutions Switch to WAUSAU Financial Systems for Remote Deposit Capture

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WAUSAU Financial Systems, a provider of payment and receivables processing solutions, today announced that Westbound Bank, American Chartered and Alerus Financial have made the switch from their existing remote deposit capture (RDC) solutions to WAUSAU’s Deposit 24/7 RDC suite. Deposit 24/7, complete with risk monitoring and remittance payment capture functionality, is the most comprehensive RDC solution available, and includes merchant, consumer and mobile capture points which allow for convenient and secure check deposit from the office, at home or on-the-go.

For financial institutions previously unsatisfied with their check deposit technologies, WAUSAU Financial Systems’ RDC solution distinguishes itself through unique functionality, including automated risk monitoring, a necessity for financial institutions that plan to offer RDC to micro-businesses and consumers.

“After reviewing five potential RDC providers, many claimed comprehensive risk monitoring still wasn’t an option,” said Lisa Clark, IT manager, Westbound Bank. “Then, we were introduced to WAUSAU’s solution. Its full integration to Quickbooks, built-in lockbox capabilities and custom risk monitoring features truly set it apart from the other solutions.”

Understanding that risk strategies often leave financial institutions vulnerable, WAUSAU ensured its solution included components such as velocity and dollar limits and real-time decisioning, making the management of risk and compliance truly second nature for financial institutions and their risk management teams.

“Managing risk is always a bank’s primary concern, given the sensitive nature of our business,” said Kent Scharringhausen, senior vice president of treasury, American Chartered. “We were looking for one provider with a comprehensive RDC package including mobile and consumer options. We interviewed six vendors and WAUSAU was the only one that could provide complete assurance surrounding risk, in addition to a mobile RDC solution ready for deployment next month.”

Given the electronic, self-service options the technology provides, financial institutions like Westbound Bank, American Chartered and Alerus Financial can use WAUSAU’s RDC technology to retain and expand their customer bases, providing new levels of deposit convenience and reducing traditional branch deposit transaction volume and branch operating expenses.

“Introducing new technologies to our branches can sometimes cause uncertainty among our staff,” said Lori Laturnus, deposit platform manager, Alerus Financial. “With WAUSAU’s solution, however, we were given the proper training and resources to implement the new technology quickly, without the headaches new systems can often create.”

For innovative financial institutions looking for speed-to-market with mobile deposit solutions, WAUSAU’s Deposit 24/7 Mobile RDC application offers seamless integration options that allow them to get to market quickly without compromising on quality.

“Our unique mobile ASP solution is particularly fitting for community banks wanting to get to market quickly, given it can integrate with financial institutions’ existing mobile banking platforms or be used as a stand-alone application, if desired,” said Kathy Strasser, executive vice president of solution management for WAUSAU Financial Systems. “Currently, few financial institutions are offering mobile RDC. Those that make the decision to offer mobile will have a window of opportunity to attract new customers and capitalize on growth before the competition elects to follow.”

Industry analysts agree that many more financial institution RDC installations are to come.

“Celent estimates that more than a million consumers are registered users of consumer desktop or mobile RDC,” said Bob Meara, senior analyst in Celent’s banking group. “We’re beginning to approach mass adoption and see the recent RDC deployments as only the tip of the iceberg. A growing number of financial institutions, whether large or small, are sure to launch consumer directed RDC products in the coming year.”

For more information on WAUSAU Financial Systems’ Deposit 24/7 RDC solution, which has earned top ratings from industry analyst firms Celent and Aite Group, visit www.wausaufs.com.

Deposit 24/7 Mobile relies on technology from Mitek Systems, Inc. called Mobile Deposit, a patented application that allows users of many popular smart phones to deposit their checks simply by snapping photos with the cameras on their devices.

Source: PRNewswire

Mobile Payments in Afghanistan

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When someone in a far-flung rural mountain village in Afghanistan wants to transfer money to family in another part of the country, there are few conventional banking options. A new text-based payment service, backed by the country’s banks and telecom providers, now offers a simpler, more convenient alternative.

In 2008, telecommunications company Vodafone and Roshan, an Afghan telecom provider, teamed up to launch a mobile-phone payroll service called M-Paisa for the Afghan National Police. Now M-Paisa has been expanded so that anyone with a mobile phone and an M-Paisa account can transfer money across the country for a small fee.

via Technology Review.

European Treasurers Want Wider Access to Mobile Banking

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Mobile banking has a strong adoption rate among European treasurers and there is a clear demand for wider access according to Treasury Strategies, Inc., a treasury consulting firm with offices in New York, Chicago and London.

In a report issued this week, Treasury Strategies  indicated there is a clear vision for the capabilities and functionality demanded by European treasurers, however, mobile services are not widely available.

Treasury Strategies surveyed 160 treasury organizations across Europe and learned that 19 percent of them are using mobile offerings.

“This adoption rate is strong, given how recently these services first became available,” said Monie Lindsey, Managing Director of Treasury Strategies in London.

The primary reason why corporates are not leveraging mobile services is a lack of mobile offerings from their banks. Non-users are highly interested in mobile services, with 93 percent indicating they would like to view balance information via their mobile devices.

“Such strong interest is a call to action for banks to find a way to develop these services for a growing business segment,” said Lindsey.

The path for developing these services is clear. In addition to viewing balances, there is a strong and specific demand for mobile services that would enable a user to authorize and release payments as well as execute and confirm trades.

“The key for corporate treasury is that mobile banking services must be built into the larger technology scheme of the organization. Additionally, banks need to understand how their mobile offerings would fit into the daily operations of their clients in order to develop offerings that meet their clients’ needs,” added Lindsey.

Source: MarketWire