how to create a successful mobile payments app
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HOW TO CREATE ASUCCESSFUL MOBILE
PAYMENTS APP
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HOW TO CREATE A SUCCESSFULMOBILE PAYMENTS APP
Executive summary
The App Economy is poised for a massive expansion over thecoming years. Globally it is expected to double by 2017 to acombined value of $151 billion.
Established businesses are set to fall behind as they repeatedly failto come to grips with an increasingly mobile orientated world.
Organisations that fail to take the app seriously as an independentand unique entity will miss out on new trends in consumer habits.
The prices for innovation and dedication to a specically mobileorientated experience will be considerable for new and establishedbusiness.
Its taken the web about 16 years to get huge, but mobile is matchingthat in about 4
SIMON KHALAF , CEO OF FLURRY
The majority of mobiledevice owners under45 are using apps atleast a few times perweek the number ofapps used per day percustomer is expandingand will continue to doso
APP NATION
2013 REPORT
4YEARS16YEARS
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Introduction
The quotes above predict an economy niche ready to explode. Mobile
spending in Western Europe is set to increase eleven-fold to 19.2
billion by 2017. Currently 66% of payment processes attempted with
mobile phones are abandoned before completion, with 46% of peoplefailing to complete a purchase because the process takes too long
that is, more than a 60 seconds to complete a payment and 41%
failing to complete a purchase because it is too diffi cult to enter card
information.
Many established companies using traditional business models are still
reluctant to take m-commerce seriously. According to Deloitte, 81% of
retailers state that the objective of mobile for their company is to drive
revenue to their website, as opposed to being a revenue-generating
tool itself.
This article aims to show why apps are consistently failing to meet
consumer expectations and to analyse how the projected boom of the
coming years can be realised. Our research reveals that the businesses
who are most sensitive to the very real prospects of m-commerce
as a separate phenomenon from e-commerce will steal ahead of the
competition, but only if they are able to deliver the innovations thatcustomers are increasingly coming to expect.
Native apps vs hybrid apps
A native app is an application that has been developed for use on a
particular platform or operating system. They can take full advantage of
that operating systems features and its technological upgrades. Hybrid
apps, however, combine elements of both native apps and web apps
and are generalised for multiple platforms.
every 100 milliseconds in loading time results in a 1% loss in sales
AMAZON
The previous section is concerned with what established businesses are
comfortable with and what they are prepared to try, regardless of the
frustration caused to the consumer which is by no means insignicant.
Please
wait
66 %OF PAYMENT PROCESSES
ATTEMPTED WITH
MOBILE PHONES ARE
ABANDONED BEFORE
COMPLETION
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Indeed, it has been found that 57% of mobile customers will abandon
a site if they had to wait 3 seconds for it to load, while Amazon reports
that every 100 milliseconds [a tenth of a second] in loading t ime results
in a 1% loss in sales. In addition, native apps are up to 10-15% faster
than hybrid apps, so if something takes 4 seconds to load in a native
app, it could take 60 seconds in a hybrid. This kind of waiting time isresponsible for many mobile cart abandonments.
Any kind of lag in loading time for the consumer hinders your businesses
ability to convert browsers into buyers.
Yet established businesses refuse to address these gures, to the extent
that by 2016 half of all apps are predicted to be hybrid apps. From a
business perspective, based on existing market opportunities, this
makes sense: hybrids are often cheaper to produce and take less time
to develop for different platforms. However, while they help the business
in the short term they prevent the customer from having the kind of user
experience they expect, thus risking damage to the business in the long
term.
When we add the stories of Facebook and LinkedIn to this mix, the
argument for the development of native apps over hybrids is very strong.
The success of Facebook and LinkedIn
Facebook and LinkedIn recently switched from hybrid to native
apps. Why? Plenty of reasons have been given for this change, but
the common theme is that they are much more concerned with user
experience than with their development teams woes.
One major reason for this switch was speed. A native app will alwaysbe faster and smoother to use than a hybrid app. Native apps are also
noted for their responsiveness. When you move your nger across a
screen a native app will respond almost instantaneously: it feels like the
features of the app are physical objects rather than mere pixels on
the screen.
The same applies to smoothness. Animations and movements will
always perform more smoothly in a native app: they look better and
&
SO IF SOMETHING
TAKES 4 SECONDS TO
LOAD IN A NATIVE APP,
IT COULD TAKE 60
SECONDS IN A HYBRID.
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feel less clunky than in a mobile website or a hybrid solution. LinkedIn
have spoken publicly about their decision to change and have gone
some way to debunking many of the arguments that developers use to
support web-apps (hybrid apps) or mobile-sites: Kirin Prasad of LinkedIn
says that A few things are critically missing (for hybrid apps). One is the
tooling support having a debugger that actually works, performancetools that tell you where the memory is running out.
Another distinct advantage of native apps is their local storage
capabilities, meaning you dont need an internet connection in order to
use them: you can save your work locally and then the app will connect
or upload it once you have internet access. This is particularly useful for
professionals on the go, for example, as they can update their LinkedIn
prole during that rare spare time when travelling to and from business
engagements.
Prasad contrasts this with the burgeoning support available for
native apps: If you look at Android and iOS, they are two very large
corporations that are focused on building tools to give a lot of detailed
information when things go wrong in production. Prasad goes on to say
that with mobile websites and hybrid apps those same kind of tools are
often difficult to nd and often ineffective.
Despite this there are some serious objections to the adoption of native
apps. Many of these have been put forward by app-guru Jacobi Nielsen,
who suggests that developing apps (already a costly undertaking) will
become more and more expensive with the rising costs of the platforms
for which they have to be developed, citing the fact that iOS has already
forked into iPad vs. iPhone and that Kindle Fire has effectively forked
Android. Again, these hurdles are business-centric and can only be
overcome by businesses choosing to tackle them for the benet of their
customers.
Nielsen might be correct about increasing app development costs,
but the evidence suggests that the rising use of mobile apps to make
payments will more than compensate for any increase in development
costs. Making mobile payments appeals to 42% of Brits, while in
Malaysia 56% nd the idea of immediate mobile payments extremely or
very valuable. These are among the highest levels of interest recorded
A few things arecritically missing (forhybrid apps). One isthe tooling support having a debuggerthat actually works,performance tools
that tell you where thememory is running out
KIRIN PRASAD SENIOR DIRECTOR OFENGINEERING MOBILE,LINKEDIN
42 %OF BRITS FIND MAKING
MOBILE PAYMENTS
APPEALING.
ACCORD RESEARCH CONSULTANCY
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by ACCORD Research Consultancy when testing the appeal of new
concepts.
Matthew Baxter-Reynolds, an independent software developer in the
UK, sums up the pros and cons for the user when considering native vs.
hybrid: If you look to connect with your customer via a mobile web app(a handshake) and your competitor offers them a cuddle with a better
native app experience, you will lose, regardless of the eloquence of your
argument or the sophistication of your engineering.
Aligning business and customer needs
The last two sections reveal the core of the argument over the longevity
and value of m-commerce: established businesses are the major barrier
to the proliferation of m-commerce. Like Facebook and LinkedIn they
are able to capitalise on the positives m-commerce can bring to their
customers, yet unlike Facebook and LinkedIn they are lazily unwilling to
do so.
The most successful apps will be those who operate under the
old adage, the customer is king. These apps will be produced by
businesses that correctly recognise the app as a unique entity, and
therefore as a unique opportunity to reach out to their customers and
deliver an exclusive experience.
App success will depend on: discovering opportunities in existing and
new situations; creating business solutions that are app-specic; and
innovation. If businesses and entrepreneurs bear this in mind, they
will nd themselves signicantly altering the state of the market and
unsettling the giants of the industry. As Simon Khalaf, CEO of Flurry
says, Wake up and disrupt something. However, if apps remain merelythe little brothers and sisters of the desktop website, they will not full
the predictions of the app economy and businesses will fall behind as a
result.
The most effective and most popular apps will be those designed
as individual entities (not simply an af terthought to a website) which
directly address customer needs, and thereby offer a unique experience
CONNECTING WITH
CUSTOMERS VIA A
MOBILE WEB APP
A HANDSHAKE
COMPARED TO A
CUDDLE OFFERED BY
A BETTER NATIVE APP
EXPERIENCE.
MATTHEW BAXTER
REYNOLDS
SOFTWARE DEVELOPER
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unavailable anywhere other than through that app.
We can learn an important lesson from Facebook and LinkedIns
decisions to switch from hybrid to native: businesses must clearly
understand the wider importance of the app and recognise its unique
position and potential in the modern marketplace. Most importantly,
however, businesses must be willing to make the right decisions to driveand ensure future success.
Whether your business is developing an app, thinking of doing so, or just
standing at the side wondering what all the fuss is about m-commerce
affects you. A focus on the customers experience is the order of the
day. Increasing democratisation of the marketplace is not limited to
m-commerce, customer expectations of what your business can do
for them will continue to rise across all sectors just how customer-
orientated is your business? HOW CUSTOMER
ORIENTATED IS YOUR
BUSINESS?
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Call us on 0203 503 0600 orgo to www.judopay.com to nd out more.
2013, Whitepaper by judo Card payments for mobile apps
+44 (0 )203 503 0600 [email protected]