Micro & m-paymentvs

the Recession

Alex Covic, Fortumo.com2009

Since 2002, revenues generated by internet ads (PPC, display ads, classifieds, sponsorships) have been soaring.*

In the first half of 2009, we have witnessed a decline from internet advertising related reevnue compared to the same period of 2008.* 

 

For the first time in last 8 years.

*IAB, PwC

 Micropayment

• is a way to bill consumers for (relatively) small amounts

• much faster and more convenient compared to e-banking and credit card payment

• ideally suited for charging for digital content and virtual goods

• impulsive, cashless, and pain-free payment method

Jakob Nielsen:  "I predict that most sites that are not financed through traditional product sales will move to micropayments in less than two years."*

*useit.com

M-Commerce

• is a simple implementation of the Micropayment principle

• available to anyone & everyone with a cell phone

• practically anonymous & safe (no credit card theft here!)

• SMS (text messaging) - a technology widely accepted by consumers

*Abi research

2008 - $346 million2009 - $800 milion (projected)  

231% increase!

Revenue from physical goods sales via m-payment in the USA market

Challenge

• In 2009, everyone knows that it only takes a few minutes to create a personal web site or a blog

• However, setting up a revenue-generating SMS-service was not that easy:

• closed technology and platforms• difficult to get in, not transparent• different conditions in different markets• high initial fees

Creating a revenue-generating mobile service should be as easy

and cheap as creating a blog.

fortumo.com

Fortumo

 A different take on mobile

micropayment:on-line signup & instant service activation

costless -no setup fees, no monthly feesno technical skills required

simultaneously create multi-country services

Octobar2009:

90% users: small and med-size

web-biz, enterpreneurs

 10%:

TV, radio & print media, ad agencies

example client:   

 "Hot-or-Not, the Balkans way" 

With Fortumo, Neogen is able to:  

• let their users interact via SMS, not just on-site• generate revenue from each SMS

example client:   

 "uniting 60 000 cats i 91 500 dogs in 15+ countries" 

With Fortumo, Unitedcats.com:  

• has setup a SMS service for sending virtual gifts to other users pets

• makes money from every SMS sent

Example client:   

 "The home for Your homes" 

With Fortumo, kuca.net:  

• enables people to find a perfect home for rent or sale using just their cell phone

• earns revenue from every SMS