Depending on Mobile Payments for Success

by Allia Vidmer on February 19, 2010

Mobile payments was most likely in your top 5 list of concepts you needed to become more knowledgeable with when your company decided to offer its content to potential customers via mobile hand held devices.

In a nutshell, the equation is rather simple. Provide premium content and service via SMS, WAP or the mobile web. Allow your customers to consume it in whatever mobile fashion fits them best. Of course, you need to charge for the delivery of that content. As such, you learn all about mobile payments, their processing and settlement.

Ultimately, your business success in its mobile ventures comes down to getting paid for the services you provide. You must find a provider that has complete control of connecting mobile content purchases to the operator bill. Without this single capability you will likely spend most of your time searching for your billing and settlement activities and less time enjoying the revenues for which your company has previously delivered.

The processing of the transactions is ultimately where your profit and profit margins come from. Clearly, the revenues you generate from the content and services you deliver are your income. How long it takes for that money to find its way to your bank and the deductions along the way all contribute to your bottom line profit margin.

When looking for a mobile payments processing provider, make sure they specialize in processing your payments via direct relationships with mobile operators. Too many companies are 2nd, 3rd or deeper away from the actual cell phone services companies that your business may seem like the proverbial drop in their overall buckets of income.

When this happens, your company can easily get lost in the process. By dealing only with those top tier companies who’ve developed direct relationships with mobile operators can you be assured of getting paid for what you’ve delivered to your customers.

Being able to reliably count on revenues generated and settled becomes an increasingly important aspect of your mobile business model. You got into the business to provide premium content and services to your customers, and you expect to generate income resulting in healthy profits. Having the tools to more accurately forecast your revenue streams is of vital importance to maximizing your mobile success.

You’ll also want to have access to clean and transparent views of the mobile purchasing activity on your networks and the transaction status at any given time during the payments life cycle.

Having complete controls over the finances, and access to detailed transaction reports helps keep you in complete control. It is this comprehensive control that provides the ability to minimize revenue loss, and understand that loss when and where it does occur.

If you’re mobile business is fortunate enough to move into the high volume arena, it will be paramount that you’re provider has the capability to scale accordingly. Being unable to process sudden surges of transactions, like those resulting from a national marketing campaign, will end up with unacceptable rates of lost revenue.

The company you decide to go with for your mobile payments and processing should be able and willing to help you at all times with these issues. When you make the decision to take your company into the world of mobile commerce, the very last thing you need is to discover that you’re unable to take advantage of ready and willing to pay customers

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