Posts filed under 'small business'
Obopay’s CEO and Founder, Carol Realini is featured participant at the Global Saving Forum which is taking place today under the sponsorship of the Bill and Melinda Gates Foundation. You can view Carol’s presentation from the event and a white paper that Obopay is publishing in conjunction with the event at the links below:
Global Savings Forum Obopay White paper:
http://slidesha.re/d81QMA
Carol Realini’s Presentation from the Global Savings Forum:
http://slidesha.re/8ZZ68h
November 17th, 2010
This week I have been invited to share my views on how to expand global financial inclusion in a Global Savings Summit www.gatesfoundation.org/financialservicesforthepoor/Pages/global-savings-forum-2010.aspx which is being sponsored by the Gates Foundation. Bill Gates will be participating, listening and probing, to see how his organization can accelerate the efforts to create global financial inclusion. In this blog post I have summarized the points I intend to make at the Summit. In subsequent posts I will tell you how these ideas were received and, later, go into each point in more detail.
As you know, our quest at Obopay is to use the ubiquity of mobile phones to deliver financial services to those who have traditionally been underserved. We do this in partnership with mobile carrier, banks, mobile phone providers, and retailers. Interestingly, our partnership with each of these players has given us a unique insight which is that Collaboration is critical. An open, trusted, scalable and interoperable model is essential to maximize reach and deliver the broadest range of financial service offerings. Also that UDI and disbursements will ensure key cost elements are reduced and drive larger adoption – accelerating the “network effect” for those with the greatest need.
I have always believed that an Open Collaborative Model will achieve the benefit of more financial offerings and more choice when branchless banking scales. It is certainly where I have seen the most success:
- Interoperable multiple mobile banking/payment providers. It is essential to have multiple providers which include both bank and non-bank participants. If they interoperate (allow payments between their respective participants) this will drive greater adoption and usage, much like carrier-based text messaging (SMS) enjoyed when it became interoperable. It is essential that these players recognize the tangible benefits that accrue to the market as a whole, while benefiting each of them individually.
- Broadbased Agent Networks with connections to traditional banking and payment infrastructure. Agent networks need to reach people where they live and work and connect to the traditional banking and payment infrastructure. Financial solutions are not silos. Much like the internet, the value increases with the number of participants and contributors. Agent networks are critical to reach the underserved; traditional connections are key to the participation of the traditionally served community.
- Open Access. It is important to offer choice and encourage innovation in financial services. An open “marketplace” or “appstore” for Mobile Financial Services that gives the users choice. All people deserve access to quality and choice in their financial services. Open approaches will encourage innovation.
- Merchant acceptance interoperability. Building enough places to pay is essential for the growth of mobile financial services. Small and micro business adoption is essential to usefulness. Those businesses benefit more if they are able to serve more of their customers – therefore merchant acceptance of multiple mobile bank solutions will increase value to the SME and value for users.
Such a model empowers life and work by making financial services more accessible and affordable while providing a full range of offerings that are user focused even in the most challenging market scenarios. Users can start with simpler, immediate needs and graduate to savings, micro loans and micro-insurance products.
Once a network is established (critical mass of agents, merchants, consumers, financial offerings), the Open Collaborative Model will encourage highest value, more choice, more innovation and more utility.
There is great interest from the private sector in investment for mobile financial services. Yet these investments, absent an open collaborative approach will achieve only a fraction of their potential. In a world where half the adult population lacks affordable and convenient access to simple banking, we owe it to the underserved to move quickly to this model. What is at stake is inclusive growth and empowerment of the poor.
I look forward to exploring these ideas with you in the days and weeks ahead, and I welcome your comments and thoughts in the comments section below.
November 17th, 2010
This week we announced new functionality for our Mobile Money for Banks offering. The announcement broadens the scope of mobile transaction capabilities for banks and their customers. The new capabilities are based on the feedback and requests that we have received from the most active mobile money users of our service, and from the bank partners that we have been working with. We have continued to get great feedback on the new capabilities since they have become generally available, and we welcome your feedback regarding what you would like to see from our service and how you would like to use it.
The new capability for Mobile Money for Banks include first-of-its-kind instant mobile transfer capabilities between accounts at different banks, get paid tools including text-to-donate and text-to-pay and features that make it easier for small businesses or even individuals to accept electronic payments.
The new functions empower users with the ability to transfer money between banks instantly, and accept card payments and electronic checks. This is especially important for bank customers that represent small businesses or organizations, or who need to get paid as individuals and who have been unable to accept electronic payments due to high fees, start-up costs, or denial of card services by their banks. The number one request we have gotten from users interested in our service has been for solution that enable users to accept card payments for personal and small business payments, followed by the need to get instant access to the money the are sent. This is what our new capabilities address. There are currently 24 million individuals just like the users who have asked us for this functionality who need to get paid for goods and services, but who have not been able to accept electronic payments according to the Philadelphia Federal Reserve. While less than 30% of all small businesses accept any form of electronic payment, the new functionalities of Mobile Money for Banks allow any small business or individual to get paid electronically via theirs and their clients mobile phones. This latest addition to our Mobile Money for Banks offering allows the banks that service these users to work with Obopay to bring this capability to market quickly and easily.
Read the full release here.
September 29th, 2010
What will be the impact?
For a time, we’ve been saying in this space that the tipping point for mobile payments in the United States was upon us. A story covered by Bloomberg news yesterday serves as corroboration of this belief. Shortly after the final bell rang on the NYSE yesterday, Bloomberg reported that unnamed sources claimed AT&T and Verizon Wireless were planning a joint venture(JV) to uproot the hold traditional plastic credit cards have on electronic transactions by developing a smart phone based payment system. T-Mobile was also reportedly a minor player in this consortium.
- The pilot of this JV is reported to be in 4 cities with smart phones and proximity payments as the key application (instead of swiping a card you wave your phone in front of a special retail terminal).
- Discover and Barclays are participating as financial services partners
- They don’t yet have a CEO for the JV and are undertaking a search.
- This is being seen as a potential threat to Visa and Mastercard and their 82% share of consumer retail payments in the US. This could also have a big effect on banks since they have significant revenue from “interchange” – the fees tied to MC and Visa transactions.
It is too soon to predict the full impact and the speed at which this new venture will be rolled out. If, however, it is successful the potential is huge since more than half of all the new phones shipped in the market today are smart phones. What is predictable is a response from the other players in the US. Some, like banks, VISA, Mastercard, retailers, have had a “wait and see” attitude about mobile money in the US. Compared to their counterparts in other parts of the world, the US-based companies have been slower to invest in mobile. This news will accelerate their plans, serving as a call to action for financial institutions in the US to quickly begin planning how to enter the mobile payments market, not just launch mobile banking solutions.
Is the opportunity for mobile payments in proximity payments or wireless payments?
Both, only proximity payments take a lot more time to gain broad adoption. In Japan it took a decade. The opportunity is very large – the biggest segments are retail, check replacement, money transfer, and online commerce. All four represent significant opportunity.
One of the big questions is what will get things started here. We think the US market is more likely to ignite around wireless payments first, then move into proximity due to challenges in bringing together the number of players required to roll out proximity payments and the expense involved. Once started, people will expand their use to other types of payments. We see this in every country where we are – it starts with one compelling reason but once the consumer trusts it they are looking for other uses.
This venture into retail proximity payments could change how we pay for things when we are doing in person transactions. Visa and MasterCard were responsible for processing 82 percent, representing $2.45 trillion of consumer spending on cards in the US according to the Nilson Report. If mobile payments from the mobile operators take off, this could be impacted. This would also impact the banks since they generate revenue from VISA and Mastercard payments.
Do you think the mobile carriers will be successful in payments?
They can be. And mobile carriers playing a lead role in mobile payments in the US may be a concern for financial institutions, which have traditionally played that role here. We see and even work with mobile carriers in other markets who are creating successful solutions. However, in the US the mobile payment market is the financial service providers’ to lose. But they must act quickly, and move into a full range of mobile money transactions because the carrier efforts have already begun—and they have already seen some success in other areas like “text to donate” and digital content billings. In the US consumers are first looking to other financial service providers to provide mobile money. If they move quickly, they definitely can be a part of consumer solutions. There is a window open right now for financial service providers to move quickly into wireless payments, since proximity payments will take some time to rollout. The necessary physical changes required in phone and merchant terminals will increase the time for implementation.
How will Obopay respond and what does this mean for Obopay
We offer a comprehensive mobile money service operating in 4 countries. Today, we offer our partners Mobile Money solutions which will allow them to deploy their own branded mobile money service. Designed to make the bank’s accounts or existing prepaid offerings the anchor for all current and future mobile money transactions, the service combines complete brand control, and a full range of mobile transactions and applications with simple low-cost integration and deployment. Obopay’s Mobile Money for includes the ability to send and transfer money as well as payment card acceptance available to everyone. It can be implemented in 30 days or less.
We know that this JV will accelerate interest in mobile payments and with it the adoption of our service. And those financial service providers that prefer to get the capability from MasterCard can adopt MasterCard’s Mobile MoneySend or FIS Global’s People Pay solution–both of which are offered in partnership with Obopay.
August 3rd, 2010
We’ve recently been writing a good number of posts about how small businesses can benefit from a variety of series. We just want to take a quick moment to let you know that Obopay also helps small businesses as the company has a variety of tools for a small (and medium) sized business to accept electronic payments through the business website or from a mobile phone. With Obopay it’s free for the business to receive a payment from a customer who pays the business from their credit or debit card or from their bank account.
Give it a try and let us know what you think on Twitter.
The Obopay Team
November 30th, 2009
Many small businesses are gaining ground connecting with one another and sharing success stories using the American Express OPEN Forum and the VISA Business Network. This post, and others we’ve recently shared, are just a few of the opportunities we’re finding for small businesses.
November 24th, 2009
There are admittedly so many articles on how to improve your search engine optimization, but few which actually speak to the fears of the small business when deciding how to manage online search campaigns. Stoney DeGeyter wrote a very clear and thoughtful 5 step way to not “blow your SEO (budget).” What makes the post “clear” and “thoughtful”? Here’s our feedback:
1) It’s a numbers game – While there is never one way to skin a cat, there has to be a few best ways to get it done. Stoney could have listed the top 1,243 ways to improve the SEO of a small business. But, all in all 5 is good, especially because among his list are ideas which lead to others. For example, stop trying to rank #1 on Google, and “build a site that actually deserves to be #1″ is sound advice.
2) Forgettaboutit (the competition, that is) – Well, not all together. Though, there is some truth to what Stoney adds in when he points that too heavy a focus on the competition is not good because you, the small business owner, only knows so much about your competitor. However, there are tools online to help you learn more…
3) In the short / long terms – Just because everything seems so instant today, doesn’t mean your SEO results will be, Stoney says. That’s true too. Keep an eye on both, though. Don’t forget that a lot can be accomplished in the now. The results may not be as good as say 2 months from now, but don’t write that off as only having to invest a small amount in your SEO program. If you’re going to do it, do it right, and consistently from the get go.
The Obopay Team
November 19th, 2009
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