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04
Jun
2010

Android mobile payment platforms appearing

POSTED BY Global Administrator
As trailed in our report on Mobile Payments for Digital and Physical Goods, we're seeing more in-app billing mechanisms appearing. Most recently both Zong and Boku have made announcements. Interestingly, they're for Android! In-app billing will gain traction, for example when, having downloaded an app as a trial, a user decides to buy the full product. This is another sign of the increasing activity in this market that we detected when researching our new report. Like many mobile commerce applications and services including ticketing, coupons and banking, ultimately mobile payments are going to succeed as they make life easier for users. Japan is a great example of this: McDonalds for example is fully equipped for contactless payments at all its locations there so customers know that they will be able to get theor burger even if they only have their phone with them and no cash. The “impulse” nature of most mobile purchases and the ease by which consumers can pay for small items therefore are key drivers. Paying monthly by mobile phone bill makes a lot of sense and Zong has rolled out this ability in some 35 countries. In fact Zong has found that it converts shoppers into buyers at rates up to 10 times greater than traditional payment methods because it has carrier billing. Along with major names like Amazon and eBay offering mobile platforms for physical goods purchases, these are some of the reasons why we're forecasting mobile payment users to reach nearly half of all mobile subscribers by 2014.