It pays to go mobile

The mobile payments market is set to explode into a €400 million industry, as expert Thomas Bostrøm Jørgensen explains.

“In developing countries mobile banking services even support a paradigm shift in financial transactions by bringing banking services to 'unbanked' populations”
-Thomas Bostrøm Jørgensen

What drives the mobile payments market, making it such an important growth opportunity?
Thomas Bostrøm Jørgensen. Significant opportunities for cost savings and increased revenue drive the market. Innovative mobile payments strategies enable organisations to transform the way financial services are delivered by introducing a new mobile channel. The statistics prove the importance of the market, showing the explosion of mobile phone usage and concluding that the mobile payments market could be worth as much as €414 billion by 2013. In developing countries mobile banking services even support a paradigm shift in financial transactions by bringing banking services to 'unbanked' populations. Mobile payments solutions providers such as Luup give access to new business models and service offerings including branchless banking, mobile payroll solutions and money transfers.

What benefits and competitive advantages can organisations gain by rolling out mobile payments strategies?
TBJ. Let me reply by asking back: would the readers of this article like to access new customers and revenue streams, reduce costs and increase operational efficiencies? I am sure the answer is yes. And with mobile payments solutions, organisations will gain clear competitive advantages. They can, for example, better service their customers with faster, more convenient services, increasing satisfaction. This in turn contributes to retention, up-sell and cross-sell opportunities. Moreover, cutting-edge branded mobile platforms appeal to new target markets enabling brand differentiation, customer acquisition and new revenue.

Could you outline Luup's credentials and your approach to servicing customers?
TBJ. Luup has been developing and operating mobile payment solutions since 2002 and was the first company to hold a full European e-money license. We know how to meet challenging financial services regulations and support our customers with innovative strategies. Our customers chose us because we offer the most effective combination of credentials to be successful: a highly experienced team, innovative technology, neutrality as we are not tied to specific mobile networks and a convincing security model. Our responsive, customer-centric approach allows for tailored, white label applications development. Customers can also leverage Luup's remittance and payments gateway across networks and geographies.

What are critical factors to success?
TBJ. There are many, but as we operate in an innovative, at times challenging market, it is crucial to help organisations participate as smoothly as possible. Luup's modular portfolio of capabilities for example can easily be selected and combined to create the most efficient, fastest possible market rollout. Full compliance with financial regulations and the highest standards are critical too to gain end-user buy-in for rollouts. That is why Luup's unique credentials in the financial sector are vital and we focus on customers with a financial services license or financially regulated partnership models.

Can you give examples of how Luup has enabled organisations to establish a mobile payments strategy?
TBJ. Luup devised strategies for financial institutions such as Deutsche Bank Global Transaction Banking, MoneyGram International and leading UAE bank, the National Bank of Abu Dhabi (NBAD). With NBAD we developed a SMS-cash-service that was the first of its kind, enabling mobile money transfers and ATM cash-out to anyone, whether an NBAD customer or not. Person-to-person mobile money transfer and person-to-merchant bill payments are up and running and soon we are adding a mobile remittance service. With Deutsche Bank on the other hand we are planning instant and secure mobile payments services to client banks and corporations in 80 countries.

Which businesses other than financial institutions can benefit from mobile payments solutions?
TBJ. A wide range of businesses and organisationa can reap benefits from Luup's comprehensive portfolio of solutions. Corporates and their treasurers, remittance networks, governments as well as not-for-profit organisations, all can achieve significant operational efficiencies and cost savings. We are for example pioneering a proposition for corporates with large supply chain distribution networks, which enables treasurers to transform B2B processes and cash management. Corporates' end-users can make and receive payments, authorise invoices and remotely initiate payments using a company mobile. So new solutions offer real-time payments collection, convenience and the opportunity to reduce operational costs.

Thomas Bostrøm Jørgensen is CEO for, global mobile payments solutions provider LUUP. He is an expert on innovative mobile payments solutions and business strategies that enable organisations to securely transform the way financial services are delivered. Under Thomas' leadership, Luup devised mobile payments strategies for a number of global institutions.