Mobile Users Increase Mobile Shopping, Mobile Payments

More mobile and Internet users are using existing online accounts to buy things, uploading credit card information to the phone to make purchases, using third-party accounts such as PayPal or Obopay to make purchases. Perhaps significantly, the percentage using their mobiles to access bank account information on the phone to make purchases from online retailers did not grow.

Yankee Group :: Research Report

Mobile Couponing Grew in 2010

Consumer use of mobile coupons has shifted radically from 2009 to 2010, say researchers at the Yankee Group. In 2009, just eight percent of respondents who expressed interest in mobile coupons using text messaging or multimedia message service had actually used a service such as Groupon.

Click on image for a larger view.

This figure more than doubled for 2010, to 19 percent of subscribers. Similarly, applications facilitating the real-time scanning of images or bar codes to receive more information or to compare prices increased in usage from five percent of consumers with an interest in mobile coupons in 2009 to 14 percent in 2010.

Yankee Group :: Research Report

Bill to Mobile Isn't That Popular with Consumers

Consumers do not seem especially anxious to make payments in a retail environment while adding those transactions to a monthly wireless bill.

This is not good news for mobile operators, which are universally struggling with how they will insert themselves into the well-established payments value chain, researchers at the Yankee Group say.

Yankee Group

Japanese and Korean Telcos Announce NFC Roaming

Japan’s biggest mobile operator, NTT DoCoMo, has agreed with Korea’s second-largest telco, KT Corp., to develop cross-border payment, ticketing and other services using standard NFC.

In the announcement, DoCoMo said that these are NFC services that the two telcos will 'launch in their respective markets of Japan and South Korea from around the end of 2012.

Data from the U.S. market is scanty, as few consumers yet have had a chance to use NFC or other mobile payment applications and services.

Researchers at the Yankee Group note that 2010 was the first year tests were run. Click on image for a larger view.

Japanese and Korean Telcos Announce NFC Roaming–Rollouts Expected

Sprint Kyocera Echo Launched

See segments two and three here: http://www.androidcentral.com/sprint-kyocera-echo-presentation

AT&T Introduces Unlimited Calling to any U.S. Mobile

AT&T has introduced unlimited mobile calling to any mobile number in America. "Unlimited Mobile to Any Mobile" is available to AT&T customers with an unlimited messaging plan and a qualifying voice plan, basically those voice plans that include unlimited messaging.

Existing customers with an unlimited messaging plan can activate "Mobile to Any Mobile" by visiting www.att.com/anymobile. The URL will be available beginning Thursday, Feb. 10, 2011.

It is likely no accident that the new offer becomes active on the day Verizon Wireless starts officially selling the Apple iPhone.

How Digital Media Might Affect Education Business

A look at how mobiles and e-book readers might affect the education business.

http://net.educause.edu/ir/library/pdf/HR2011.pdf

Nokia Admits Difficulties

"The first iPhone shipped in 2007, and we still don't have a product that is close to their experience," says Nokia CEO Stephen Elop. "Android came on the scene just over two years ago, and this week they took our leadership position in smartphone volumes. Unbelievable."

"There is intense heat coming from our competitors, more rapidly than we ever expected," Elop says. "Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem. They changed the game, and today, Apple owns the high-end range."

Also, "Google has become a gravitational force, drawing much of the industry's innovation to its core."

At the same time, "Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements."

"Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem."

Nokia CEO Stephen Elop rallies troops in brutally honest 'burning platform' memo?

Visa to Buy Online Commerce Platform

Visa is buying online payments company PlaySpan Inc for $190 million, expanding Visa's its e-commerce and mobile payments capabilities.

Privately-held PlaySpan processes transactions for online games and virtual goods sold on social networking websites. It is based in Santa Clara, California, and backed by several venture funds, including Easton Capital, Menlo Ventures, TimeWarner Investments, Vodafone Ventures and GE Asset Management.

Visa to buy PlaySpan for $190 mln | Reuters

Card Issuers Face $25 Billion Hit, Implications for Mobile Payments

New credit card and debit card regulations could cost U.S. card issuers up to $25 billion a year in lost revenue, according to a study from Boston Consulting Group. That has implications for mobile payments providers who expect to build business models built on payment fees.

For starters, the business, though lucrative, will be smaller than it has been in the past. Also, to the extent that the market leaders create the price umbrella under which all other contestants must operate, lower fees mean discounts offered by would-be competitors also must be lower.

The other issue is that there has been pressure in the retail payments business for other reasons. Since 2008, payment revenues have fallen about four percent annually, despite volume growth. Revenues are expected by BCG to grow about six percent, but remain the peak 2007 level of $162 billion globally. Many will note that the "real money" in payments is in "interchange" fees, the "percentage of transaction" revenues that processors earn.

Credit card issuer revenue was down about 18 percent in 2010. And the sword of Damocles hanging over the industry is the threat of further action to reduce the key interchange revenue stream. 

The other approach is simply to price the upstart services higher than currently imposed by the major card issuers, but then the value issue immediately becomes more obvious. What incentive will a retailer have to switch if transaction costs actually are higher? There are answers, but nearly all the answers have to do with additional value beyond transaction costs.

The consulting group said various changes from the CARD Act, the Durbin amendment and Regulation E will take away 29 percent of the revenue that U.S. issuers, mostly retail banks, collect from retail card transactions. Moreover, the new rules may open the door for more regulations, including possible changes to credit cards.

The consultants said that, in response, issuers will transform the card industry, selling more products to each consumer and moving further into mobile banking. In large part, that is because the credit card portion of the business has reached an inflection point, according to BCG.

In response, banks will have to shift strategies, spending more time creating value around mobile location, customer features such as real-time alerts, location, remote deposit, product reviews, loyalty and other features possible when users can take advantage of smartphone capabilities. See http://www.bcg.com/documents/file71194.pdf

Study Says Card Issuers Face $25 Billion Hit - WSJ.com (subscription required)

Sprint Adds Kyocera Echo,with 2 Screens

Sprint Nextel Corp. unveiled a smartphone late Monday that includes a twin set of touch screens that give the device a pseudo-tablet design. That approach might appear even on some PCs, as the touch interface gains more traction.

The device, called the Echo and made by the U.S. unit of Kyocera Corp., features two 3.5-inch touch screens that can be stacked side by side. It will be available in the spring for $199.99.

Users can accomplish multiple tasks on the two screens, or drag items from one screen to the other. The phone, which runs on Google Inc.'s Android software, uses a pivot hinge that allows one screen to be tucked under the other, transforming it into a more conventional touch-screen phone.

Sprint Adds Kyocera Echo, a Two-Screen Smartphone - WSJ.com (subscription required)

Death of Apps?

Not everybody believes mobile apps are the future. "Apps are going to die away in favor of simple mobile websites," says Mark Ferdman, chief executive of Pushkart, a start-up in the mobile coupon and group buying business. "Steve Jobs has done a great job of creating a marketplace that is unnecessary."

That might be a minority view at the moment, though.

Reporter's Notebook: Entrepreneurs Debate Death of Apps - WSJ.com (subscription required)

Dodd-Frank Bill Poses Issues for Mobile and Most Other Payment Providers

The new Dodd-Frank bank regulations impose a transaction fee cap of 12 cents per transaction. If the rules stand, there are business implications for mobile payments firms that promise "lower transaction costs." The typical assumption is that a new provider can provide the retailer with a lower transaction cost, but that might not be the case.

Square, whose one-inch-square card swipe device attaches to an iPhone, iPad, or Android device, charges 2.75 percent plus 15 cents for each swiped transaction; typed-in transactions cost slightly more. A standard debit card transaction might cost less, at 1.75 percent.

Sage Mobile Payments offers a credit card reader that plugs into the audio jack of a smartphone. The company plans to charge customers a set-up fee and then a monthly fee starting at $10.95, but no transaction fees.

Intuit's GoPayment, which works with iPhone, iPad, iPod Touch and BlackBerry devices and will be one of the first mobile payment apps available on Android 3.0-based tablets, provides a free card reader but charges 15 cents per transaction along with 2.7 percent per swiped transaction or 3.7 percent per keyed transaction for low volumes; businesses that process more than $1,000 a month pay $12.95 per month and 30 cents per transaction as well as 1.7 percent for swiped transactions, 2.7 percent per keyed transaction.

If new providers cannot offer lower fees, there will have to be some other value driver.

Can Square, Intuit and Other Mobile Payment Providers Compete With A 12-Cent Debit Card Transaction? - Bank Systems & Technology

Apple's New iPad in Production

The new Apple iPad is coming, and will be thinner and lighter than the first model, the Wall Street Journal reports. It will have at least one camera on the front of the device for features like video-conferencing, but the resolution of the display will be similar to the first iPad. It will also have more memory and a more powerful graphics processor.

The new iPad will be available from AT&T and Verizon Wireless, but not Sprint or T-Mobile USA.

Apple's New iPad in Production - WSJ.com (subscription required)

Google Steps Up Mobile Ad Sales Efforts

Google is ramping up its efforts in mobile advertising sales efforts. Apparently, sales forces are trying to get existing advertising clients to extend their campaigns to mobile devices.

'I don't see any reason why mobile advertising won't be relevant to every single advertiser,' said Karim Temsamani, Google's head of mobile advertising."

Google Steps Up Mobile Advertising Business - Mobiledia