October 18, 2013
Inspite of limited adoption of mobile wallets, the large payment companies as well as startups seem to be very optimistic about it. Product and company launches in the mobile wallet space seem to be unstoppable. Some of the major players who have also got into this space include Google, ISIS, Samsung and Apple. There are also white label wallets such as Paydiant, Yalamanchili. Some of the startups in this space include Clutch and MobiKwik. Another startup which joins the long list of mobile wallet competitors is CloudZync. It seeks to provide mobile wallets for retailers to enable mobile payments and loyalty programs.
CloudZync, a U.K. based startup, was established in June 2012 by Mark Seddon and Andrew Smith. Around 350 merchants are currently enrolled in the company’s scheme. The startup has previously raised undisclosed seed funding through anonymous investors.
CloudZync’s Zync Wallet App - Zwallet claims to eliminate the need for physical wallets in participating shops and send exclusive offers straight to the user’s phone. Thereby, enabling a messaging space for customers and merchants to share info with each other. This enables customers to take advantage of any loyalty schemes on offer. It also helps merchants in knowing about the customers’ desires, likes and dislikes.
So what does Zwallet claim to offer its user’s?
A complete digital wallet providing a personalized payments and engagement channel between any partaking business and the consumer.
The major difference between Zwallet and other mobile apps has been the personal payments and communication channel offered by Zwallet
Provide users with a newly developed, secure method of payment that additionally stores loyalty schemes and vouchers virtually inside a user’s smartphone.
Enables users to share their location and shopping history, socially.
Option of checking in at a user’s favorite stores. Share socially purchase details, loyalty schemes they’re signed up with and vouchers used through a user’s Zync account.
Offers Pin Board messaging, which no other mobile wallet brand offers.
There is no setup fees for businesses which accept payments using Zwallet. The wallet is fully customizable and brandable. No physical cards are necessary and no hardware such as a card reader is required. Merchants just have to check a photo to confirm the identity of the user when making a transaction similar to PayPal’s facial authentication initiative was launched recently.
The full service business plan with CloudZync begins at £40 per month and merchants do not have to pay any transaction fees. The merchant can otherwise choose ‘Pay-as-you-go’ option which starts at 5p per transaction for every 1000-5000 sales. Therefore, if a business makes 1000 sales at 5p they spend around £50 in fees.
CloudZync’s product competes with players such as Google, ISIS, and Paydiant. Google Wallet is free for consumers to setup and use online. Sending money from Wallet or bank account is free. A fee of 2.9% is charged in case the user wants to transfer funds using a credit/debit card. For merchants, a fee of 5% or 1.9% + 30 cents is charged depending on their preference.
LTP View: CloudZync with its Zwallet may have a slight edge over its competitors in terms of its unique offerings to the customers like enhanced security, social share, personal payments and Pinboard messaging. Overall, the picture of the mobile wallet business space is not very clear.