Published: September 2007
Author: Infogile Technologies
The emergence of e-commerce has digitized the payment process, whereby payment details are sent over open networks with no physical contact between the buyer and the seller. The recent development of high-speed mobile data networks has created a new channel for commerce, while sophisticated mobile devices are enabling the virtual exchange of payment information known as proximity payments. Operators are facing cutthroat competition and with the call rates dropping everyday, the margins are reduced to nadir. Therefore the operators are looking at Value Added Services (VAS) as the next wave for growth. It has become the flywheel of telecom growth and a large chunk of revenue for operators is likely to come from VAS services in the years to come. High-speed data networks, such as 2.5 and 3G, with more sophisticated data-enabled wireless devices, have the potential to transform payment. Color screens, greater bandwidth, and compelling content are converging to create an environment where consumers feel more comfortable transacting on the move. The success of mobile payments is contingent on the same factors that have fuelled the growth of physical world non-cash payments, namely: security, interoperability, privacy, global acceptance, and ease –of use. This white paper provides a detailed analysis of the opportunities and challenges in mobile recharge market.
White Paper Overview
Abstract This paper describes the basic concepts, services offered, market survey and technology which enables Mobile Recharge. Over the last few years, the mobile and wireless market has outgrown the internet market. There is an increasing demand from the customers for the value added services on their cell phones. As average revenue per user decrease from voice drops, and voice becomes commoditized, Telcos are increasingly looking at data as an additional revenue stream. The end users have also embraced VAS and it contributes between 5-10% of the revenues of different Telcos. Thus Mobile VAS has become an important element in the growth of mobile telephony in India. One such potential market is the mobile recharge market. With almost 200 million cell phone users in India alone, it opens up new channels for customer service and revenue generation.
Document Audience This document is primarily intended for Marketing, Sales, Product Support, Internet Services Group, Project Engineering and anyone who is interested in Mobile Gaming.
Introduction to Mobile Market Size
The user demand for convenient and intelligent ways in which to make payments for goods and services using a mobile phone is creating exciting opportunities for those organizations that are part of the mobile payment ecosystem. The ecosystem includes mobile operators, banks, retail merchants & transport operators, handset manufacturers and a whole range of new entrants eager to put their innovative mobile payment solutions into the hands of mobile phone users. Mobile telecommunications continue to be phenomenally successful, with an estimated one billion mobile subscribers by the end of 2002 (Source: The Universal Mobile Telecommunications Service (UMTS) Forum). The success of NTT DoCoMo’s imode service in Japan, which currently has 34 million data subscribers, illustrates the appetite for compelling mobile data services. In Europe, the viral uptake of short messaging (SMS) has demonstrated the huge demand for non-voice services in that market. According to the GSM Association, there were over 30 billion SMS messages sent in 2001. By the end of 2007, the total transaction value for mobile payments will have reached just above $2bn. The demand for mobile payments will grow in the 5 years from 2007 to enable the processing of nearly $22bn worth of payment transactions by 2011. This is a large figure on the surface but still means that in terms of payment schemes; mobile...