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There's a lot at stake for companies that get mobile payments right. How much? Potentially tens to hundreds of millions in new and incremental revenues in a marketplace that is increasingly defined by the smartphone and mobile payments technologies.
Three tactics: more conversions, higher acceptance rates for payments, and support for a wide variety of alternate payment methods (including popular and regional digital wallets) will help businesses capture that revenue and simultaneously turn their customers into satisfied consumers.
Just how large and potentially lucrative is the revenue for airlines? CellPoint Mobile’s recently released Mobile Payments Imperative report highlights the following:
That revenue, and those opportunities, await businesses (particularly airlines) that are taking steps now to support a variety of payment methods, mobile devices and mobile technologies – regardless of currency or channel. Airlines can watch revenues grow from more ticket sales and from the ability to sell more ancillary products and services directly, rather than sharing profits with online travel agencies or third-party retailers.
Success in the mobile environment requires executives and payments officials to embrace one central thought in their pursuit of higher revenues: as you move to roll out and support mobile payments, focus primarily on doing it well.
Do mobile payments well, and customers will use their mobile wallets and a variety of supported payment methods to purchase products and other services directly from an airline rather than a third party vendor. Direct-channel revenues do not have to be shared with online travel agencies, ancillary product providers or other third-party firms whose services often include a cut from airlines.
The most functional mobile payments solutions are those that focus on core tactics:
Numbers tell the story – the story of opportunity, the story of an industry in transition, the story of potential revenues waiting to be captured. Success will flow first to businesses that embrace and support the mobile payments evolution quickly…and that support it well.