Mobile payment city appeared "second wave" boom

BI Chinese station reported on May 21

In the field of mobile payment, there have been many vendors dominated the market such as PayPal, Square and Google Wallet. However, according to the U.S. news website BusinessInsider, the "second wave" boom has emerged in the mobile payment market. The focus is not on shopping Consumer payments, but P2P payments by netizens to Internet users (personal money transfer services), nearly ten payment clients have emerged, which is expected to further promote the penetration of mobile payments in the United States and the world.

These transfer tools no profit model

In the United States, there are still many people who still rely on cash or checks to pay for themselves. However, a new breed of personal transfer software will allow them to do that on their smartphones.

In these tools, users only need to enter their own bank account once in the future in a variety of scenarios, simple and seamless payment to others.

One of PayPal's Venmo, a personal-to-personal payment tool, is the best use of AA payments after the party has ended, and the company said it paid $ 314 million in the previous quarter.

Traditional mobile wallet and other mobile payment products, has relied on the payment of fees (mainly paid by businesses) means to establish their own revenue model. But for the new batch of P2P payment and settlement tools, they are also hard to get substantial revenue, which will be a problem.

However, once such P2P tools as Venmo are going into the physical mobile payment field in the future (which is still a blank at this time), they can rely on their massive user base to generate revenue.

BI-Intelligence, a market research arm of BusinessInsider, said that in the future, personal money transfer payment tools will become mainstream products for mobile payment.

Personal transfers are mobile payment catalysts

The agency said in a recent research report that P2P payments have greater practical value to the general public and will therefore see a rocket-style growth in the next five years. The report also analyzed ten of the typical P2P service providers, showing that some startups have targeted this potentially hot area.

According to the report, the market volume of transfers between individuals in the world is as high as one trillion U.S. dollars, although only a very small part is done through smartphones.

In emerging market countries, due to the underdevelopment of the traditional financial industry, personal transfer and other functions also need to rely on smart phones. According to statistics, in developing countries, the proportion of people using settlement and savings accounts is significantly lower than that of developed countries.

Safaricom, a telecoms provider in Kenya from Kenya in Africa, offers a great example of financial services offered via smartphones. The company has a payment product called M-Pesa that allows users to transfer money to others simply by texting them on their cell phones. Thanks to the immense success of this product, 92% of Kenyans in polls said they had used mobile personal money transfer services.

However, BI-Intelligence also pointed out that in developed markets, the penetration of mobile personal money transfer tools, not too fast. However, since these tools solve one of the biggest pitfalls of people, there is still tremendous promise in the future.

The report predicts that for the U.S. market, by 2018 (in another five years) the size of the mobile money personal transfer market will reach 86 billion U.S. dollars.

Today, the vast majority of mobile personal money transfer services are provided free (or nearly free) way to provide, so the industry's business model has also drawn attention. Some products have tried to pay, others rely on traditional cell phone ads. However, most products want to become "Trojan horses," that is, the first mass into the user's smart phone to win the trust in payment services, the future re-consider the mass-based revenue model.

On mobile P2P payments, a BI-Intelligence survey found that American users' interests are temporarily low for several reasons, with 62% of U.S. adult smartphone users saying they are reluctant to keep sensitive bank accounts and other information in their cell phones , 58% said they did not see the value of switching from credit card and cash payments to mobile phone transfers.

Coincidentally, Juniper, another technology market research firm in the United States, also released a report on mobile payment recently. It predicts that in five years, every five smartphones, there will be a mobile phone that is installed A mobile wallet tool. At the end of last year, the penetration rate of mobile wallet, only about 10%.

However, Juniper's report does not clearly differentiate mobile payments into two segments, consumer payments and personal transfers. The company believes that a catalyst that has led to an increase in the penetration of mobile wallet is the mobile phone personal transfer function. This feature will be gradually integrated into the existing mobile banking APP and payment tools.

Analysts said that if Google, Square and other traditional payment giants, the formal integration of a sound personal transfer service, which will be the market for start-ups hit the blow. After all, in general, a user is reluctant to install too many payment APPs in his cellphone. (Dawn)