Telemedia-Month Newsletter JULY

Issue 41 • JULY 2013

#PAYMENTS Consumers want m-pay but banks and third parties steal a march

THIS MONTH... News

• Sq1 launches new chat platform to fill the void 3 • 160bn consumer apps to be downloaded by 2017 4 • BokBok aims to make m-games more social 5 • Shoppers who shop weekly via mobile has doubled since 2012 6 • UK leads Europe in m-retail with 41% of shoppers now on mobile 7 • UK m-ad spend set to hit £1bn in 2013 8 • Syniverse buys MACH for E550m to create cloud giant 9 • Lack of digital know-how costs retailers £12bn, says O2 10 • Dallas Cowboys go Dutch for mobile coverage 11 • UK texters write Shakespeare twice over in a life time 11 • Life saving app uses GPS to keep Europe safe 12

Analysis

despite some much needed marketing for Payforit in June at the Payforit Summit, research has found that consumers trust cards and want card payments to become much more integral to every kind of shopping experience they have. And, while there is a growing thirst among consumers for mobile payments, operators are likely to lose out to a raft of third party services and offerings from banks who seem to have stolen a march on the issue. In June a raft of new mobile payment services were launched that tie cards or bank accounts to payment apps and allow consumers to buy conveniently and speedily using mobile. New findings from a survey supporting the launch of WorldPay Zinc, the new pay as you go mobile payment service that enables card payments on the move, reveal that many of the UK’s four million small businesses could be missing out on an extra 20% of revenue simply because they are not offering customers the option of paying for goods and services by debit and credit card. The research also reveals that 87% of consumers are likely to spend more money per transaction when paying with a debit or credit card, as opposed to cash, highlighting the potential benefits to small businesses of accepting card payments. In the last year, one in five (20%) UK consumers has had to abandon a purchase due to a small business or sole trader not accepting card payments or because they were not carrying enough cash to make a payment. These businesses are not only missing out on potential sales, but they are also risking their reputation and customer loyalty. Over half of consumers (54%) find it inconvenient when small businesses don’t accept card payments, rising to 66% amongst 18-34 year olds. The implications are far reaching on a national level also, with 72% of people left with a negative impression of a business that fails to accept cards. Customers associate businesses that don’t accept card payments as

continued page 2>>>

Editorial Hot stuff Mobile billing is hotting up, but it needs to be pushed to get traction, argues Paul Skeldon 13 OPINION Wrapping up mobile payments Following the successful inaugural Payforit Summit in London, Rory Maguire takes a look at what needs to happen next 14 OPINION A tale of two transactions IDC’s John Delaney takes a look at how two big telecoms deals are going to reshape how mobile works 15 ANALYSIS The best audience Sponge’s Phil Gault looks at how wifif holds the key to engaging the most lucrative audience 16 ANALYSIS Destination Amsterdam World Telemedia Amsterdam is set to get going in October, but we need your input now. So see what we have planned and stick your oar in 18