Kobi Danon, CEO & Founder and Moti Levy, CRO & Founder - MobiliBuy

When we attended this last IRCE event in Chicago, a strong trend we noticed was mobile and Mcommerce solutions.

With keynotes on the future of multi-screen purchasing, and many Ecommerce solutions firms presenting their mobile products, it feels as the future of Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and online retail is moving to the small screen. One solution however did catch our eye in its simplicity and innovation.

Payment Magnates was invited by Israeli Mcommerce startup MobiliBuy’s CEO Koby Danon and CRO Moti Levy, both the founders of MobiliBuy, to see a demo of their new product. The demo included an Android smartphone, an iPad tablet, a computer screen, and print out of a virtual store shelf.

Moti simply pointed the smartphone’s camera to one of the products on the print out using the MobiliBuy mobile application and almost instantly a buy page appeared on the screen. “It also works with any QR reader” Moti added, and opened a generic QR reader and pointed it at the code located under the item, returning a mobile browser tab with the buy page for the product. Showing the solution is cross platform and works on video screens, the iPad stepped in starting the buy process by scanning images off the computer screen.

“It also works with any QR reader”

After the demonstration MobiliBuy’s invited us to their head offices in the Nielson Innovate center located in Caesarea Israel, about 30 minutes away from the busy streets of Tel-Aviv.

Nielson’s center launched in 2013 and serves as an incubator for Israeli startups, licensed by the Chief Scientist of Israel. Arriving at the building we were greeted with an open space sectioned off by large working areas, each housing new and exciting innovations in the high-tech space.

Since late 2013, MobiliBuy’s solution has offered a dynamic mobile shopping experience to where the store comes to the consumer. Storefronts based on location, populace, and time create the most appropriate setting for the items up for sale. One example given was a Valentine’s Day campaign carried out by MobiliBuy and local Israeli flower chain Zer4U.

“The customer experience can be summed with ‘snap and buy’, that’s it”

Rollup signs were placed in local high-tech offices on February 14^th, giving employees the ability to purchase last minute flower arrangements for their significant others. The campaign provided a solution for those who either forgot to order an arrangement, or simply did not have time to go out and order one. This example shows how MobiliBuy targeted a market based on based on location, populace, and time, and brought the store to them simply and efficiently.

Another campaign with multinational consumer goods distributor Unilever also proved successful with adverts and billboards spread out over the Tel-Aviv area for gift packages of Dove and AXE products.

We sat with Koby and Moti to further discus MobiliBuy and their ideas for the future.

Payment Magnates (PM): Can you walk us through the buy process on MobiliBuy?

Koby Danon (KD): The shopper first is presented with the store. It can be a sign, a screen, a billboard or a bus ad. The store comes to them, without the need to search for the specific item. If the shopper is interested in the item he simply needs to open the MobiliBuy app or any QR reader and point his mobile device at the item. After the initial scan the shopper gets a product page with an option to buy, afterwards it’s as simple as entering your PayPal information or payment details. Payment details are only asked for once and are then stored to streamline future purchases.

To make it short the customer experience can be summed with “snap and buy”, that’s it.

Moti Levy (ML): The shopper buys the product from the merchant. We provide the gateway, invoicing, and back-end, but the shopper deals with the merchant and the merchant is responsible for the customer communication and delivery.

The customer’s experience is in front of the merchant, but they will know that MobiliBuy is the payment platform.

PM: With such a dynamic storefront, what industry types does MobiliBuy support?

KD: Our platform can basically support any industry type. Cosmetics, merchandise, event tickets, and even homes and cars. Anything that comes to mind can be sold through MobiliBuy.

We aren’t sure yet as to what the possibilities are. Amazon started selling books, and Airbnb was short term rentals, look where those companies are now.

ML: There isn’t really an industry that cannot fit our model.We even see big ticket items like refrigerators, washing machines and even mattresses being sold on the platform.

We are not going up to companies like GE to sell through us, but we do think we will get there in time. MobiliBuy supports sales of services and physical goods. The idea is convenience and impulse buys, and as long as a storefront is strategically located you can sell anything.

The best way to target these high ticket items is through an “endless aisle”. A shopper can scan a fridge for example and be offered endless possibilities like model range and colors to get the exact item they want.

“There isn’t really an industry that cannot fit our model.”

PM: What markets is MobiliBuy targeting?

KD: We are currently doing a few more campaigns here in Israel. I can’t say much now, but they will involve screens rather than signs, offering more dynamic possibilities.

The US is the target market. They understand and use Ecommerce solutions better than the majority of other countries and are ready for a new type of retail experience.

PM: What are the supported currencies and alternative payment methods on MobiliBuy?

KD: We support PayPal since launch. Once we begin entering new markets we will also offer more localized solutions in local currencies. We don’t want to create a confusing experience for the shopper where he needs to calculate tax and currency conversion rates.

PM: With such a new idea, what are the conversion rates?

ML: There a few parameters to look at, those who were exposed to the store, those who scanned the product, and those who finalized the process and bought the item. When looking at a standard Ecommerce store online, the average conversion rate is between 1.5% and 2%. What we saw was a conversion rate of just over 10% from those who scanned the product.

The reasons for the high conversion rate comes from a few factors. First, the retailers behind the campaign lend their name and are not necessarily new companies, they are familiar and trusted. Another is the way MobiliBuy works. The store is strategically located to target the foot traffic around it. What could be an appropriate storefront in one place won’t work in another. The time of day can also have an influence, and with digital screens we can adapt to any environment.

KD: Because the store comes to you, it is designed to offer what you need now at this time and place. The shopper does not need to search for what they might think they need but it presented in front of them.

We have created a new shopping experience for both the shopper and the retailer, that’s why our conversion rates are so different than traditional Ecommerce.

PM: with the sales being placed on mobile devices over mobile networks, what security features have you implemented?

KD: We only provide the gateway. All payment data is collected using a Tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term system so we do not store any delicate or valuable data. We also offer PayPal, which in itself is a secure payment option.

When we see ourselves becoming bigger, of course we will look into bringing in more solutions in-house like risk and fraud.

ML: All the information is encrypted and tokenized, we do not deal with any sensitive card data.

Koby Danon, CEO and Founder.

A business leader with over 20 years of experience at Conduit, Amdocs, Cash-U, Verint, and others. Highly experienced in building and managing large-scale business units and growing start-up companies.

Moti Levy, CRO and Founder

A marketing and operations executive with a vast retail experience managing large P&Ls at Sears Holding Company. Over 15 years of experience in E-Commerce, online, and digital marketing.

To learn more about MobiliBuy, visit their website at: www.MobiliBuy.com.