how to create a successful mobile payments app

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  • 8/12/2019 How to Create a Successful Mobile Payments App

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    2013, Whitepaper by judo Card payments for mobile apps

    +44 (0 )203 503 0600 [email protected]

    HOW TO CREATE ASUCCESSFUL MOBILE

    PAYMENTS APP

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    HOW TO CREATE A SUCCESSFUL MOBILE PAYMENTS APP 2

    2013, Whitepaper by judo Card payments for mobile apps +44 (0 )203 503 0600 [email protected]

    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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    2013, Whitepaper by judo Card payments for mobile apps +44 (0 )203 503 0600 [email protected]

    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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    2013, Whitepaper by judo Card payments for mobile apps +44 (0 )203 503 0600 [email protected]

    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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    2013, Whitepaper by judo Card payments for mobile apps +44 (0 )203 503 0600 [email protected]

    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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    UKs leading provider of easy, secure andend-to end mobile payment solutions for

    native apps to increase mobile conversions.

    Fast transaction speed, intuitive user

    experience, simple pricing structure, highestsecurity standards and seamless integration

    with native mobile apps puts judostechnology ahead of the curve.

    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]