- Mobile purchasing
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Mobile Purchasing[1] is a new term which some people are starting to use as an overarching term for mobile operator based payments. It incorporates traditional mobile payment solutions, including Premium SMS and WAP payment.
The different solutions incorporated within the banner of Mobile Purchasing provide [primarily online] retailers with an alternative payment method to offer to customers.
As there are more mobile phones than credit cards, many retailers feel that by including a mobile purchasing option they are being more inclusive – i.e. they can sell to those without bank accounts or credit cards. After cash, mobile purchasing is the second most ubiquitous payment solution.
Contents
Usage
Currently mobile purchasing is used primarily for online and mobile web based purchases and donations[2]
Advantages
Mobile purchasing offers an alternative payment method for consumers, for some (those without a credit card or bank account) it may be their only alternative to paying with cash. Some people prefer mobile purchasing as it can be a quicker payment method – fewer keystrokes to enter a mobile phone number than a credit card number. Also, as nearly everyone carries their mobile phone with them at all times it is an always available form of purchasing.
More retailers are starting offer a mobile purchasing option as they believe that it can increase the available market by opening it up to those without credit or debit cards. They also believe that it can help to increase the lifetime value (LTV) of a customer compared to a credit card purchase, by linking the sale to a mobile marketing programme.
Disadvantages
One of the main disadvantages of mobile purchases often cited are the lower than for credit card based payments[3]:
- Credit cards / PayPal: Between 80% and 90%
- Premium SMS: Between 45% and 60%
- Payforit: Between 45% and 89%
Notes
Categories:- Payment systems
- Credit cards / PayPal: Between 80% and 90%
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