Piercing Mobile Payment Mysteries: Myths and Realities

Mobile payments and virtual goods industry have built a strong monetary connection, and have been the hot topic of Fortumo’s recent posts, in case you haven’t noticed ;)

What is mobile payment anyway? What makes it the most favourable payment channel among the gamers? Why do people keep talking about this buzzword and publish tons of observations about it?

As the name implies, it is the payment method that processes real-time transaction via mobile phones, and is noted for its high mobility. Yet skepticism about mobile payments is not unusual. Having discussed so much about the upsides of mobile payment, today we’re here to help you better understand this billing channel by breaking the myths, stereotypes or preconceptions, whatever you name it.  The common myths associated with mobile payments can be broken down into the following three categories.

No more myths and doubts about mobile payments. Here we present to you the realities, the hard facts.

Money matters

  • MYTH: “high transaction fee?”
  • REALITY: Financial issue is always the key concern in business. Like mobile payment, card payment also takes transaction fee that is around 3% plus commission. Yet due to its ubiquity and real-time processing, mobile payment has been proven to have higher conversion rate than other payment methods. As the previous post pointed out, few clicks, anywhere, anytime. People takes the easiest path. Naturally, much higher conversion rate leads to greater revenue.
  • QUESTION: as a service provider, spending a bit more transaction fee, but converting greater numbers of clients to use your service, which payment option is of real business to you?

 

Person matters

  • MYTH: “only the unbanked use mobile payments?”
  • REALITY: Both the banked and unbanked sectors choose mobile payment for its high accessibility and convenience. Stats show that three-fourth of the current mobile payment users are with one and more bank accounts.
  • QUESTION: with the availability of mobile phone(s) to make real-time purchase anytime anywhere you wish, do you care at all whether yourself is banked/unbanked?

Security matters

  • MYTH: “paying via mobile phones = fraud?”
  • REALITY: no need of revealing your personal information or credit card numbers online.
  • QUESTION: Aware of the identity-theft cases or credit card crimes over the years? And you thought using mobile payment equals to high risk of being scammed?

One last Myth and Reality about mobile payments — Some of our clients are wondering if Fortumo runs well only in Asia and Europe and thus works on our coverage there solely. Truth is, indeed Fortumo hits great success judging by our growing revenues and expanding coverage. Myth is… working on these continents solely? ;)

Coming soon our Fortumo Team will reveal to you another reality about Fortumo Mobile Payment Solutions – Stay tuned and keep mobile =)