20120903 mo momicropaymentannearndt4

Micropayment for Digital GoodsAnne Arndt @anneaDeutsche TelekomMoMo Düsseldorf

Today Music, TV on Demand (TVoD), applications, online news and eBooks require the user to be able to pay small amounts quickly, safely and easily

!How we pay will be 1 of the key

technology and business issues of the coming years

€€ €

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Micropayments = little as one one-thousandth of a Euro, but now typically means any amount that is normally too small to be processed by a bank transfer or typicall credit card payement

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Remote PaymentProximity Payment

(POS Payment)

Digital Goods and Services

Apps, Music, Books and

ServicesNFC Tickets

Physical Goods and Services E-Commerce

Low and Medium Value Items via

NFC

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... mainly used for digital goods

ca. 80% growth over the wohle period

2012 2015

Source Juniper

2012-2015

820.000.000.000 $will be spend on digtial goods worldwide.

Potential Hype

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... coming back to the issue

eWallets

Connect CC, Bank Accounts to one „virtual wallet“ provided by OEMs, MNOs and otherse.g. Paypal eWallet, Moneybookers, Google Wallet ...

Payement Service Providers

A payment service provider (PSP) offers merchants online services for accepting electronic payments by a variety of payment methods.e.g. Payone

independent payment providers are emerging strongly in those areas

Carrier Billing

Use your carrier to do the payment. E.g. Premium SMS based, Direct Mobile Billing, Mobile web payments (WAP) available via Opertors directly, as well as other Apggregators

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BUT ACTUALLY IT‘S KIND OF A MESS

$$$$So what do you need to look after if you

want to select a payment method to become the next appillionaire?

Business Model>> Try to monetize a customer several times!

Payment MethodChoose the right Payment Method

1 How many people do I reach?

15

"smartphonatics," described as people who change their shopping, financial and payment behavior as a result of owning a smartphone.

2 How good is the UX?

Secure payments with just one click

3 How complicated is it to maintain and implement?

4 How big is the revenue share?

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Recap:1 How many people do I reach?2 How good is the UX?3 How easy to maintain and implement?4 What‘s the revenue share?

!And the future of Micropayments?

• People are eluctant to keep clicking for repeated transactions. • The cost of exception handling. • A single complaint (or even a charge back) cost between $1 to

$20 wich will wipe out a merchant’s profit from dozens, or even hundreds, of sales.

Some Cyniscms micropayments will fail:

ca. 80% growth over the wohle period

2012 2015

Source Juniper

2012-2015

820.000.000.000 $will be spend on digtial goods worldwide.

Potential Hype

... no doubt that money in small amounts that can be transferred cheaply, easily and safly will offer great opportunities for the whole ecosystem ...Benjamin Franklin said: “A penny saved is a penny earned.” He was – almost – on the right track.

!What do you think?

Thank you very much