The mobile payment revolution, while not quite dominating the payment industry, is certainly becoming a fast growing discussion at boardroom tables and Skype conferences alike and will soon become something that all e-merchants (who have not yet considered mobile payments), will deliberate in order to keep up with online payment trends.
We often think about mobile payments in terms of offline NFC, type solution but actually, mobile payments are playing a significant role in e-commerce, across the board. We have had the good fortune of interviewing Gerald Tauchner, CEO at Dimoco (experts in and providers of mobile payment solutions) about this very topic, and he has answered our questions with thought provoking and helpful insights.
Payment Magnates: Tell us a little bit about Dimoco
Gerald Tauchner: Well, DIMOCO was founded in 2000 and is now a leading player in mobile operator payments and mobile messaging. Our focus is on covering more countries and offering our business customers even greater coverage. So, what we do in our daily business is develop country-by-country, billing technology by billing technology.
PM: Research is showing that mobile payments are not catching the attention of consumers as quickly as the industry predicted it would. Why do you think this is the case?
GT: First of all we have to clarify what is meant by mobile payments. If we are talking about mobile payment usage in the classic retail business with the aid of technologies like NFC (near field communication) then we are talking about a business which has a lot of potential but is still not as far along as the industry predicted. However, if we are talking about mobile operator payments in the digital content industry – which is what DIMOCO offers – then we already have a mass market. Consumers are more likely to pay for their digital content through their network operator bills because this payment method is easy and fast to use and they don’t need any extra registration to do it.
Juniper Research says that the total remote m-payment gross transaction value for digital goods will reach the 200 billion USD mark in 2017.
PM: What are the advantages of mobile payment for e-merchants?
GT: The advantages of using mobile operator payments are the broad range, the user friendliness and a secure and reliable billing method. Digital content can be billed quickly and easily with the cell phone bill. Per transaction up 150 euros and consumers don’t have to register to use the payment method.
Business customers also benefit from state of the art technical security thanks to carrier-grade infrastructure and the VPN connections between DIMOCO and the network operators.
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Mobile operator payment is successful because business customers get a payment product which can be easily integrated into their check out process and consumers get the advantage of frictionless payment. Different billing models like recurring payments and one-off transactions are also spot-on attractions for e-merchants and their businesses.
Last but not least, it’s the broad reach. No other payment method in the digital content industry can match it. With a market penetration rate of more than 100 percent, mobile operator payment simply provides the greatest potential.
PM: What are the challenges of mobile payments for e-merchants?
GT: To make mobile operator payments more known as an enormous opportunity with great potential. The only thing e-merchants have to do is integrate mobile operator payment in their check out process and see what happens. Namely, that their customer base and revenue will start to grow.
PM: How do you perceive the future of mobile payments?
GT: An increasing number of industries in the digital content business will realize that mobile operator payment gives them a head start in closing the revenue gap between those who have already paid and those who had no chance to pay because they had no access to a suitable payment method. Mobile operator payment already is and will remain in the future the most important method for monetizing digital content.
PM: Do you have any plans with regards to Bitcoin and do you think that this is going to be an important part of the future of online and offline payments?
GT: With our mobile operator payment products we have the opportunity to convert digital currencies into the country specific currency and if the consumer buys digital content in a digital currency, we service business customers in billing their consumers via the mobile network operator. In other words, we are taking over the exchange rate handling for them. We do not plan to offer our own digital currency.