CEO at Econsultancy
08 July 2003 17:12pm
What's the latest on taking micropayments using mobile phones...?
We're toying with the idea of a pay-per-page-view payment mechanism. The amount would be less than £5 - perhaps around £2 - and, given the level of spend, credit card isn't really an option from both a user and commercial point of view.
There's BT Click & Buy, of course, as well a range of e-wallet type offerings but they still all require some kind of account setting up.
I was wondering whether premium SMS or IVR technology could be used to do this sensibly? And if so, who does it, how much etc... Guess it's tricky (impossible?) for pay as you go mobile users?
I was imagining a mechanism whereby users could text a shortcode and we could text them back an access code. Is this in the world of the feasible/sensible? I heard about it being done a while back but most of those companies seem to have disappeared...(iobox and the like)
Any pointers welcome.
Senior SEO at Weboptimiser
09 July 2003 09:58am
You could try Mike Beatties outfit, SEPOMO. The site lives at www.sepomo.com. Essentially, the deal is that someone texts a given phrase to a specific premium number, and gets a code back. They input the code, and you grant access.
The cost to user is £1.17 (a quid plus VAT), the w/site operator gets a variable amount (around 30p I think. The mobile operators take the biggest cut), partially dependent on volume. Over time that figure will grow, as the total SEPOMO volume grows, and Mike can get better deals from the mobile operators, and he is also planning to introduce new payment methods etc.
For the moment, the major attraction for me would be the incredible anti-fraud measures. Mike knows a thing or 2 about mobile ops ;) and has taken great pains to secure the system.
I've lost track of what Mikes doing at the moment, so there may already be more bits in place. Maybe someone out there is using SEPOMO?
Developer at GiftedGeneration.com
09 July 2003 11:12am
I believe one of the problems you may come across is the new e-money legislation. This states that services that are paid for using pre pay mobiles must be used on the mobile device (ie. sms or wap content).
Until this legislation is sorted out (which the mobile ops are lobbying for), the application will breach the legislation if you offer it to all users (ie. pre pay + contract).
Apart from this I think it's a great idea. I'd much rather be billed a small amount to my mobile bill than get my credit card out to view website content.
09 July 2003 11:41am
Oof, I wasn't aware of that legislation. It makes sense to protect prepay users, I suppose, but its a bit short sighted in many ways, isn't it?
Hmm, I suppose you might be able to get around it by texting a WAP page to the phone with the required content, but that only works for relatively small packages
I hunted down some figures, and it seems that in the European market at least, prepaid subscribers make up between 50% - 85%+ (Italy at a whopping 88.7% in Sept '01!) of the user base. Is that still more or less the case today? Or have the mobile operators had some success in switching users to contract services?
09 July 2003 12:40pm
On 11:41:23 9 July 2003 TallTroll wrote:
>Oof, I wasn't aware of that legislation. It makes sense to
>protect prepay users, I suppose, but its a bit short
>sighted in many ways, isn't it?
>Hmm, I suppose you might be able to get around it by
>texting a WAP page to the phone with the required content,
>but that only works for relatively small packages
>I hunted down some figures, and it seems that in the
>European market at least, prepaid subscribers make up
>between 50% - 85%+ (Italy at a whopping 88.7% in Sept
>'01!) of the user base. Is that still more or less the
>case today? Or have the mobile operators had some success
>in switching users to contract services?
In mine and many others opinion it's very short sighted. If you have old copys of New Media Age knocking around have a look at the front page of the March 6th issue. I think 160charachters.org also has furher info on the issue.
I'm not sure what the exact percentages for prepaid / contract users is in the UK but in some areas (such as the youth market) it would be very significant. If your app was aimed at a business user it would probably be less significant.
One operator advised us we could get around the legislation in various ways. If you'd like to discuss these give me a call.
Tel : 07742 235983
director at sense.it limited
09 July 2003 13:37pm
I talked to some guys at Stealthnet tel 0870 800 1777 www.stealthnet.co.uk who are young, sharp, well overworked but may be happy to advise.
They are up to date on legislation as well.
ceo at Ymogen
24 July 2003 22:54pm
Click & Buy and Ymogen are mediation services, offering specific advantages over traditional SMS. They allow users to purchase content while having charges settled to a specific payment method of their choice. BT supports some cards (Visa Mastercard), direct debit and the blue bill, Ymogen supports payments via mobile and all card (visa, mastercard, switch, solo, meastro, jcb), (i should point out that neither supports AMEX).
The benefits of a mediation service over a normal SMS content service are:
Your customers register once and then all future purchases are point and click. Registration with Ymogen takes the same amount of time as a single SMS purchase using a keyword.
They support single sign-on across all affiliate sites.
There is no software to install for you our your clients.
Account management services are available for both consumers and merchants. Ymogen has an online demo at http://demo.ymogen.com
I hope this helps
Sales Manager at Netlok Telecom
14 June 2007 16:56pm
If anyone visits this old posting but is still interested in a solution for mobile micropayments this could help you:
It's a very sharp mobile payment system that allows you to gain revenue from your on-line premium content.
Contact the Netlok team on:
01273 firstname.lastname@example.orgRichard Hills (Sales Manager)
Free market research on digital marketing
Daily Pulse: award winning newsletter
It takes 30 seconds to register