mopay, a global leader in innovative payment solutions for online merchants, today announced that mobile payments in North America experienced an unprecedented rise in adoption in 2010 with conversion rates almost doubling within one year, helping bridge the divide between leading regions Asia and Europe.
mopay attributes this rapid growth to improved carrier agreements, easier integration, optimized usability and growing general acceptance amongst consumers.
The company analyzed significant data from its international mobile payments platform and based this conclusion on conversion rates, transaction values and transaction numbers accumulated in more than 80 countries.
By analyzing its mobile payments data, mopay also found that other regions around the globe are seeing increased adoption of mobile payments and higher conversion rates. With the surging penetration of mobile devices in Central and South America, these regions gained in the ranking now leveling up with Australia for a solid showing behind Asia and Europe, both long-time mobile payment adopters. Africa currently shows the lowest conversion rate amongst major regions.
Regardless of region, adults use mobile payments more deliberately and thus consequently, the average global conversion rate of adults is more than twice as high. Still, minors’ conversion rates are highly attractive as mobile payments are one of only a few payment methods to reach this valuable target group of the under-banked and unbanked.
Mobile payments work best within a value of $2.50 and $10.00. Global merchants have independently established a sweet spot of their mobile payment offers of around $8.00. Only three percent of all offers ranged below a value of $2.50 and two percent exceeded a value of $14.00.
Within this price range, the average transaction value of mobile payments increased in 2010 mirroring the growing trust of consumers in mobile payments. If this trend continues, the industry might see a significant upward shift of the pricing sweet spot by the end of this year.
Although mobile payments are broadly considered micropayments, consumers regularly spend up to $50.00 per month using mobile payments. This fact is due to a high percentage of repeat customers meaning that the majority of consumers use mobile payments more than once a month – in 2010 almost 60 percent. As low as the pricing range may seem, mobile payments regularly generate macro revenue per consumer.
mopay’s large country coverage and high transaction volume allows us to run in-depth analysis on the mobile payment habits of consumers from a global to a local level,” said Kolja Reiss, managing director of mopay.
U.S. merchants who successfully utilize mobile payments in the home market and are looking to replicate this success abroad are often unprepared for the various obstacles running international mobile payments often present,” Reiss added.
Global mobile payments providers are able to fill this knowledge gap and lay down the ideal monetization strategy for each market, each country and even each target group. Moreover, the extensive data at hand allows merchants to quickly react to trends and even proactively adapt monetization strategies and offers. Operating in more countries than any other mobile payments provider mopay is uniquely positioned to quickly identify trends that help companies around the globe develop the right mobile payments strategies for their business.
By TelecomLead.com Team
editor@telecomlead.com
