Tag: mobile payments

Monitise is for sale, citing changes to business model and a turbulent mobile payments market

Mobile payments and banking firm Monitise has put itself up for sale. The company, which is based in the United Kingdom, is citing changes in its business model for its third revenue warning that it has received in a year. Shares in Monitise have fallen by 20% as doubts begin to emerge concerning the company’s ability to find a buyer. The company has been experiencing some turbulence in the UK market recently, despite the growing adoption of mobile payments.

Firm adopts a subscription-based model that does not seem popular among clients

Monitise made a significant change in its business model recently, moving from a licensing model to a subscription-based structure. The company provides software solutions for mobile devices, allowing its clients to support mobile transactions. Among its clients are the Royal Bank of Scotland and Banco Santander, both of which have begun showing strong interest in the emerging mobile commerce space.

Mobile commerce is growing throughout the United Kingdom

Mobile payments have been growing throughout the United Kingdom in recent years. Consumers are beginning to rely on their smartphones for more than just basic entertainment and communication. These devices have become shopping platforms, allowing consumers to shop for and purchase products in a convenient manner. As the demand for mobile payment support grows, more banks are showing interest in offering their customers mobile-centric services. Monitise is one of the companies that was able to satisfy this need among banks, but changes in market trends have made it more difficult for the company, and those like it, to remain financially sustainable.

Monitise is expected to miss its revenue growth estimates for this fiscal year

Monitise expects to miss its revenue growth estimates of 25% for the fiscal year ending in June. The company expects to generate between $136 million and $151 million in revenue this year, compared to the $143.7 million it generated in 2014. Monitise stock was the most heavily traded stock on the London Stock Exchange this week.

While the service can be used at a physical store checkout counter, early adopters are using it as they shop over smartphones.

Mobile payments have been an area of considerable controversy, as some feel that this technology will rapidly take over plastic debit and credit cards, while others doubt that it will go anywhere because people are content with what they have, but where most seem to agree is that no matter the direction of the future, Apple Pay will be at the head of it – at least throughout the early years.

Now that the iPhone’s mobile wallet is available, the trends and potential for this type of service are becoming clearer.

So far, Apple Pay has shown to be quite popular among early adopters. The launch was fairly recent, as it occurred last October, and the number of people who have the necessary equipment to actually use the service is limited – as only the latest versions of the iPhone (6 and 6 Plus) are compatible – but so far, the owners of those devices who have enabled the service are using it. That said, they’re not necessarily making their purchases with their mobile wallets while in physical shopping locations. Instead, they are making m-commerce purchases with their iPhones.

This has caused many retailers to ensure that they have an Apple Pay option on their only checkouts.

Among those that have been benefitting from Apple’s mobile wallet is SeatGeek, a search app for sports and concert tickets. Its checkout screen has been updated to accept payments via iPhone and it has now seen an increase in its conversion rates by 30 percent. Those that have been specifically through Apple’s wallet have represented an 80 percent increase.

According to Jack Groetzinger, the cofounder of SeatGeek, Apple’s mobile wallet “is convenient in a physical store, but you’re never going to Wal-Mart because of Apple Pay. It’s a triviality.” That said, he pointed out that “But you are going to buy tickets on SeatGeek with Apple Pay in a case where you wouldn’t have otherwise. That’s huge.”

Indiegogo, the crowdfunding site, has seen a similar type of response, according to its chief executive officer, Slava Rubin. That site’s campaigns have seen conversion rates increase by 2.5 times when using the Apple wallet for the transaction. Rubin saw that type of mobile payments as an important opportunity for the site and has included it on the site since it was first launched.