There are numerous solutions in the mobile payments market today. In the last two months itself there have been so many more launches from Square cash to Google wallet on iOS. At the recent Middle East Excellence Awards (ME awards) in 2013, Text2Pay was nominated in the category of “Best Payments Service Provider” along with the likes of OpenMarket, IMImobile, Bango, Corethree, Syniverse,Netsize, txtNation and Onebip by Neomobile.
Text2Pay is a privately held firm launched in February 2011 with Mark Reiken as CEO. The company is backed by mBill. Text2Pay currently has an employee base of less than 50 and is headquartered in New York with offices in Sydney and Brisbane. The company has agreements with carriers in Australia, Canada, France, Germany, South Korea, the United States and nearly 60 others. At the moment, direct-carrier billing is popular with online and mobile gaming providers and one of Text2Pay’s clients successfully using the service is Mobile Media Group.
Tap2Pay is an application developed by Text2Pay to serve as a payment solution for mobiles. This software is used by the developers to integrate Tap2Pay widget to the application using a simple Java and API library. Using this Tap2Pay, consumers make single-click payments on mobile websites and within mobile apps on a smartphone.
To protect the system against fraud and leakages, Text2Pay says that it has surveillance systems, does not need credit cards and signup forms, no need for password or PIN authentication. All of this helps it to achieve high conversion rates making customer shopping ad payment experience safer, enjoyable and hassle free. “Text2Pay has recognized the need for Android mobile application developers to seamlessly integrate a payment solution into their application and responded rapidly to customer needs” says Mark Reiken, CEO. Thus merchants can now integrate the service into their offerings in two ways: the Tap2Pay HTML5 Web Mobile Payment Flow and the Tap2Pay In-App Payment solution for Android devices. What about iOS platform? What about countries like India where two way authentication is compulsory?
Steps of use for a merchant:
• Merchant signs up for a free Text2Pay account
• Merchant chooses type of campaign ( Virtual Goods/ Donations/Virtual Currency)
• Merchant fills in campaign details
• Merchant embeds Text2Pay "Pay by Mobile" button into their websites with simple API &/Java library
• Mobile Payments are then made immediately available to users and merchants can then start accepting payments!
Steps of use for a consumer:
· User browses through a product or service then selects their purchase by clicking on the "Pay By Mobile" button
· User input their mobile number
· User is sent a PIN which they then input into the field
· Virtual good/service is activation and user is billed onto their phone bill
A Video showing how Text2Pay works:
http://www.youtube.com/watch?v=5tL3BweAN2w Mark Reiken believes that the lack of human interaction and speed of set-up will be welcomed by customers. It allows consumers the freedom to have options – giving them more choice for payment creates brand retention and product satisfaction. Currently, Text2Pay has close to 3,000 merchants ranging from online games, dating websites and online classifieds – all whom have customized requirements.
Text2Pay also accepts Bitcoins which provides even more options for users to pay for their goods and services. With 95-100% coverage in over 85 countries and capability to process transactions in 43 currencies and localization support for over 30 languages, there is no need for any added developer work.
Text2Pay’s competitors in the field include Fortumo, Zong, BOKU, mopay, txtNation, PaymentPin.com and Allopass among others. Fortumo was launched in 2007, aiming to be the most developer friendly mobile payments provider. The company has presence in over 180 countries and has tie ups with over 300 carriers and 92,000 developers. You can read Lets Talk Payments article on Fortumo here.
LTP View: Text2Pay could improve revenues for merchants with their increased customer conversion. Providing multiple options like carrier billing and Bitcoins is a useful concept. Add to that few steps for transaction which has been known to increase uptake.