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Some Current Mobile Payment Models Don’t Make Sense: Schropfer
The mobile payments industry is in the same stage of development as the Internet was in the mid-1990s, according to David Schropfer, founding partner and head of mobile commerce for The Luciano Group, Red Hook, N.Y. a market research and advisory firm. Schropfer leads the Mobile Payments and Mobile Commerce practice, including market analysis and business development.
Schropfer will be a keynote speaker at the Mobile Marketing & Technology Spring 2013 Mobile Payments Conference, April 10-11 at the Helen Mills Event Space and Theater in New York City.
“The industry is evolving,” Schropfer told Mobile Marketing & Technology today. The path of that evolution will depend on “where the money is.”
Just as happened with Internet businesses in the mid to late 1990s, money is starting to pour into the mobile payments and mobile marketing industry, Shropfer said. But, again like the Internet, some of that money is pouring into technologies and businesses that ultimately will fail, like the “dotbomb” bust of the late 1990s.
Some of the economic models for some of the businesses don’t make sense, Schropfer explained. Some companies think they will make money off a new revenue stream or off interchange. No new revenue stream is coming, and the retailers and card issuers won’t carve a niche out of interchange for these firms.
“The revenue model is paramount,” Schropfer said. “Revenue expectations should be based on existing client budgets, such as advertising or marketing budgets. Retailers should not be expected to create new categories of expenditures to accommodate mobile commerce without decreasing existing expenditures.”
2013-02-21 08:02:15
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