Mobile Payment, and here comes loyalty!

Through our previous article Cash-In the passion fruit we explored how Cash-in can be a pain to any new mobile payment installation, and in the previous Saving the titanic article we explored some potential benefits for mobile payment.

Mobile payment loyaltyWe will carry on here to explore hidden benefits and values in mobile payment, and why we should consider mobile payment as on of the most innovative or revolutionary product.

Mobile payment is a new way to redefine our daily relations and operations, adding new unlimited features and helping the economy rising in emerging and poor countries.


Merchant boundaries,

If you are a certain product or store chain fanatic, most likely you are subscribed to your addicting product loyalty program either through mobile application or a plastic card. In developed countries users might join unlimited loyalty programs and during their daily trades they keep collecting points from different merchants and redeem it with simple gifts or discounts from time to time.

In emerging markets, with the absence of such mega stores or chains customers that does not have the same motivation to spend money, such deals or offers can’t be sponsored with those local dealers and micro merchants.

Value limits,

Another factor would be the transaction value, its a fact that mobile payment is designed for mini scale transactions, and tracking those micro payments will be a headache specially that a lucky customer should perform thousands of transaction to reach the minimum announced loyalty limit.

Due to the above limits both customers and merchant usually lose passion for loyalty programs and it does not help retaining a loyal customer or even help merchants to increase their sales, moreover it does not allow manufactures to run regular offers as usual.

Mobile payment and loyalty collection,

Thinking out of the box to overcome this situation mobile payment can help introducing a new loyalty concept, rather than being rewarded from a certain manufacture after achieving a preset purchase target. Loyalty programs may be combined under a group of merchant alliance offering customers rewards on the accumulated purchases target.

With your limited value purchases customers may collect points on their total bill value regardless the product or the store they are shopping in! Imagine collecting points for paying your monthly bills, buying food, coffee, pencils … etc. And being rewarded with unlimited rewards category from the program sponsors.

Rather than being focused on a certain brand mobile payment with its tracking capabilities will allow merchants and stores to run a new vertical loyalty concept, helping customers to stay engaged and increasing the traffic for merchants.

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Mobile Payment, Saving the Titanic!

Over long decades, billions of financial transactions took place every day varying from purchasing food, coffee, clothes, tools, digital products and up to online purchase.

Mobile payment benefitsThose types of financial trades are not recently invented. No, actually it has started since those early days where people were trading goods with goods in a process called bartering, and as the society were developing, people touches the need to facilitate this process and find a way to store their wealth in a shape that does not rust, rotten or vanish, and it started with gold!


Since this time the financial trades and purchases passed through multiple changes and you may call it enhancements from gold and coins to paper currency and banknotes. Banks were established to provide a financial cover, and soon the world was heading to the electronic and plastic cards where the financial institutions had been pushing the society to convert to a cash less society! And due to implemented infrastructure, Banks were not sufficient to cover all the needs especially in emerging markets –as we previously discussed here– that’s where mobile payment was born.

On a dynamic and connected world like ours, financial trades are passing from country to country creating new market opportunities for those type of legal trades and resulting a pain for trades linked to criminal or illegal activities. And the ongoing effort to push for mobile payment is not just looking for stylish or elegant payment model,it’s more into control the daily money flow to save our titanic before it sinks!

What we are about to explore today is some of mobile payments benefits showing the –good side- of mobile payments.

Mobile payment to a theft crime- less society,

Whenever a theft crime happens the thieve tries to clear his footprints and not to be traced, that’s why the money laundering overseas happens and it will need different and more complicated techniques to trace it,but in smaller amounts after a theft crime,the thieve will spend the money buying small items and cash tracing is almost impossible.

In a Cash-free society, even stealing the victim mobile with its stored wallet still will be traced and on the first purchase request he will be surrounded by cops on spot. A live example for this theory is the decreased number of stolen iPhone devices after Apple Kill Switch implementation,it was simply decreased because thieves were sure that they will be always traced.

Mobile Payment to a drug-free society,

Whenever a drug store is reported and the cops catches the dealer it takes time and effort to trace his network and connections and it might not work all the time, but again in a Cash-free society when a dealer is caught, just you imagine that a simple transaction report will show the whole network starting from customers,other dealers and even their customers too.

Mobile payment save lives,

In emerging markets multiple crimes happens every day in an endless wrestling and race for food and security. It is simple to murder a poor guy for just a suspicion that he might be holding some cash. This crime risk increases in rural areas where citizens needs to do long trips to pay some fees or monthly installments – like what happens here.

Whenever mobile payment solutions were deployed,peoples were able to get rid of those risky trips and with a simple key press they were able to transfer those amounts avoiding the risk for a may be last trip!

And many more,

With a mobile wallet implementation,it’s easier and faster to transfer money in emergency cases to a relative or even a strangers whenever bank networks is not available, and helps in collecting donations or other charity activities.

It will also support in fighting the money laundering process where the specialized anti-laundering solutions and controls will take care of the big money chunks, mobile payment will carry on detecting whatever small amounts were missed or escaped!

Capitalizing on the same base,you may now notice that mobile payment is not just a fancy or fashion solution, but definitely it’s more into a real need to help both people and governments to overcome multiple issues and it could help in lowering the crime rate in a typical country.

Still there is a dark side and the cup is not totally full, we might need another article to carry on with the mobile payment devil side!

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Mobile Payment; NFC, Why? and Why not?! [2 of 2]

In the previous article we went through the NFC and the need behind this technology, we have reached a conclusion that the data transmission technology is one of the major challenges vendors and wallet issuers are trying to surpass to allow Mobile payments to boom and start taking some of the payment cards share.

Mobile payment NFCNFC is one of the possible solutions that might help, but still there are some challenges delays the new technology expansion.

We will try to list the major challenges NFC is fighting against in the blue few bullets to be as an indicator for your weather to launch or postpone your upcoming NFC products.

Feature mobiles,

It’s a fact that NFC is made only for elected segment of smart phones, not even a generic technology for all manufactured phones, and it’s a fact that the famous Nokia 3310 will never support this advanced technology!

Still it needs more time and pressure on handset vendors to adopt NFC antenna by default, and you have to understand that your solution will only work with limited number of devices. The more time you can wait the more customers you may gain, otherwise it will end up with an annoying sign (Samsung Galaxy 3, 4 and 5 only supported!).

And even smart phones,

From each smart phone brand still only a series or two comes with NFC support, and again some famous brands like iPhone has not implemented this technology yet – that iPhone 6 might support NFC- and again you still have limited coverage and penetration issue.

The wallet solution,

Each mobile wallet system has its own processes, interfaces and APIs. While account number is mandatory for a certain wallet system to process a new payment order, it might be unnecessary or even not considered at all in another solution from a different vendor. It means that a mobile APP for solution A will not transmit the same information submitted from another mobile APP developed for solution B.

Back to the POS,

With respect to the previous point you may think how a single POS may support multiple wallet vendors, and you have to consider that mobile payment must be a cross-border service, where you should not limit your design to only the local vendors in your country, you still need to consider other international wallet roamers that will appear on your system from time to time trying to submit payment orders using your platform.


In a final conclusion, NFC is a channel of communication with a proven security and maturity specifications. But still it needs more support and push from vendors and mobile manufacturers to boom.

Worth mentioning that NFC as a contact-less payment features is not limited or restricted to mobile operators or mobile wallet vendors. The exiting card players are also investing in this track trying to upgrade their payment systems to be more interactive and enrich it with extra digital and fancy options.

Is NFC the real future or a dead technology? As you may noticed its very hard to answer this question with a sharp and clear answer. We still need to wait and see what the future is holding for this long debate and I’m sure we will be surprised at the end!

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Mobile Payment; NFC, Why? and Why not?! [1 of 2]

NFC is one of the hottest topics in payment, you will notice this hot topic wherever there is a discussion related to mobile payment and you will many arguments about NFC as the future while others confirms that NFC is a dead technology.

Mobile payment NFCIn this article we will go through NFC and its related challenges, at the end of this article the same question will remain unanswered, Is NFC coming or passing away? There is no final answer and the debates will carry on.

What is NFC?

Apart from the technical definition you may check here, I will try to simplify it with a direct need example so you will have an idea about the NFC benefits and why there is a lot of debates around it.

In my own pocket wallet I have many cards Credit Card, Debit Card, Medical care Card, Kids zone Card and Club access Card. All cards has the same width, height, thickness and the most important is the magnetic strip bar. This magnetic bar exists with the same measures and the same exact location regardless the card manufacturer or purpose, which make it easy to a typical POS machine to read it and transfer the stored information which might differ from a card to another (Account number, Balance, Last access, Name … etc.).

It is just a matter of which information the manufacturer previously saved, and the POS software is developed to read to transfer it to the back end system for final processing and handling, before displaying the friendly message ‘Transaction Completed’.

Why NFC?

Now let’s try to relate the above traditional card payment process to the mobile payment industry, how do you imagine the mobile payment POS? Should it fit the iPhone size? iPhone 3, 4, 5 or 6.

How about Samsung devices? How it could fit Galaxy or Note devices at the same time? Should we think about other Samsung brands like Mega, Ace and Y … and how may we ensure it will fit HTC, Black berry or Nokia devices?!


Ok let’s forget about designing a POS based on shape or size and think about other technology like Bluetooth as example. Bluetooth is a good option but there are some draw backs too.

  • iPhone does not support all Bluetooth functionality like android or Nokia
  • On other side Bluetooth has a wide coverage range and could be spammed, you must passed through this horrible experience with an unknown device trying to send you files forcing you to set your Bluetooth off
  • It takes a time to setup
  • And some more … [Click here for extra information]

The need,

There is real need to find a way to transfer the payment data from mobile to the merchant awaiting device. Vendors and payment processors are trying to look for a standard way to transfer the payment data from the mobile device to the POS machine.

The need behind this is to support the retails and stores daily payments without the need to use multiple POS machines and with a unified payment experience. A typical user must follow the same steps regardless his mobile type or wallet issuer.

In Part2 we will explore the NFC opportunities and challenges so please stay tuned!

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Mobile Payment, Cash-In the passion fruit! [Part 2]

In the previous part , we went through the Cash-In process and it’s big impact on the mobile money service.


Mobile payment Cash InAlso discussed The payment logical filter, and proposed the first alternative to enhance your Cash-In process by offering a unique service that can’t be purchased using Credit cards or Cash, now I will carry on directly and proceed with the other possible alternatives.

 2- Promotions, Promotions and More Promotions!

One of the possible tricks to convenience the customer to use mobile wallet as payment method rather than traditional Credit Card or Cash, is to offer them a promotion, may be a certain discount or extra loyalty points. also the possibility to enter withdrawals and win some physical gifts or maybe they will be rewarded with some extra wallet balance to enforce them loop in the loop again, which should be considered as the optimum promotion style, as you will be trying to tie customer to your wallet more.

However this should work but it will not last, the sooner your promotion ends customers will slowly revert back to their traditional payment option, as Cash-In pain will come up again and the Logical filter test will miserably fail.

going with this option only works if you are really desperate concerning acquiring or attracting customers, but still you can go with this critical solution if you have professional sales and marketing teams, with communication and hot deals you may convenience your connected merchants to sponsor those promotions. This should attract customers and waive the added-on fees to the merchants side and grant you a good profit margin.

3- Pay it later!

Another approach is to allow customers to purchase via wallet with on credit option, this will generate you more traffic especially if your KYC bar is low. On the other hand this approach will dramatically increase the project risk factor.

You will be a victim for unlimited frauds, you will lose the main concept of online payment service, and you will find out that the solution has turned into a traditional bank system one by one. You will not need – and it won’t even make sense- to implement extra fancy or online solutions since your are not running in the online mode anymore.

However this approach is one of the possible scenarios to solve the Cash-In issue but I would vote for this as the worst approach, in the next approach and the upcoming” Do and Don’t article” I will explain why this methodology is not on my favorite list.

Still you can tweak it with a link with insurance companies, but as told before. Please avoid this way!

4- Back-end you wallet!

Personally I will always vote for this approach since it capitalize on the online concept, and it doesn’t force you to run endless promotions and shouldn’t change the risk level either in positive or negative way.

Back-end your wallet by linking it to a credit card number, bank account or any other saving account. And the ultimate is to back end your wallet to a payroll account. This will ensure a smooth and continued funding source of money to feed your wallet.

Once your fund source is granted, you have to focus on offering services to your customers, you will need to support your customer needs and try to lower the Cash-Out to the lowest possible count and put Zero Cash-Out as your major target.

And to make it work better you will need to follow the following rules,

  • Ensure to offer rich and convenient interface, mobile APP, web site, USSD, SMS, IVR, WAP site and so on, less is more and eventually 2 channels is always a good start to be increased later
  • Maintain the same experience if you will launch your wallet service with more than one channel, and in your planned upgrades, it’s a must to deliver the same upgrades across all channels all at a time
  • You main target is force the money flow and resident balances or else silent accounts would be your biggest nightmare
  • Your potential revenue and profit needs thousands transactions per day, therefore you have to focus on the money movement process and acquire new service regularly
  • … to be continued

In the next article,

We will focus on the fourth option and highlight more “Do and Don’t rules” to ensure a successful and continued payment service.

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Mobile Payment, Cash-In the passion fruit! [Part 1]

Whenever a company start thinking to implement mobile payment solution or product, sales team starts to communicate and set deals with merchants and banks, marketing team start to work on how to make it sexier, should we start with NFC, digital codes or with cam recognition!

Mobile payment Cash InIt happens that technical, security and fraud team is also busy securing and tuning the service to make it extremely secure, fraud-less and fast as flash.

Afterwards when it comes to production, everybody is waiting and dreaming of the amazing traffic and the number of customers, who will love this service and become loyal to it, slowly it becomes clear that we have missed something for sure. Amazingly we have missed the passion fruit Cash-In!

mPesa, why and why not?

If you started in Kenya or any similar rural areas with no banking or wire transfer infrastructure, internet is a dream, and even if you are lucky and have a bank in your neighborhood, the possibility that “A” and “B” parties own a bank account is almost 0 percent.

It makes a sense that customer “A” will visit the next mobile station, which is almost every where, Cash-In and transfer to “B”, “B” is 100% a mobile owner – he maybe owns 2 or 3 lines even- and “B” will simply pass by the nearest mobile agent and Cash-Out.

But when it comes to payment, its really different and even harder than money transfer!

The payment logical filter!

Whenever your start your payment business you have to pass your product on the payment logical filter.

Imagine “Adam”, who owns Credit and ATM cards, and let\s assume that he will walk to the nearest ATM or bank branch, withdraw 100$, move to the nearest payment agent and Cash-In, back to the shop and asks the merchant to pay with his new digital mobile service and finally when he will realize that his total grocery bill is 120$. Now Adam is handing over his Credit card and with a quick swipe he is done!

How many patient Adam’s out there waiting for you and your digital product! I believe you should not be surprised by the results and just give it a try. Its painful, isn’t it?

Its not an easy task to compete with the long standing Credit card industry, and without an extreme effort from your side you will never make it.

Also it looks hard but there are possibilities to pass a product over the payment logical filter and it works!

In this series a different techniques and solutions will be discussed and it should help you to pass the test – the logical payment test!

1- Uniqueness is a key!

The first methodology to help your customers to forget the Cash-In pain is to offer a real unique service. It must be unique, and can’t be purchased via Credit card or Cash. It should be attractive and stands for a real customer’s need and would be great if it solves a real problem for them. This technique will make the paradigm shift and transfer the customer pain from Cash-In process to a different spot.

In some areas and due to some political or financial issues which may last for few weeks or even a month, people are suffering to refuel their cars, Gas station queue is so long and it takes few hours to get your turn at the bump.

Can you imagine if you finalized a deal with a Gas satiation and announced your Gas refill product, where customers will request the Gas and it will be delivered in 24 hours at the customer door. In this case the complicated Cash-In process will be like a peace of cake, and slowly the Gas queue will be waived to be a Cash-In queue. and with a reasonable fees you will start your next step where you have loyal customers now that still using your digital Gas product even-though the political or financial issue is over.

This should be an example of a unique product which also touches a real customer need!


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Mobile Payment, MNO VS Banks an endless dilemma

One of the most repeated questions when a mobile payment discussion starts, who will won at the end in this newly invented war Banks VS MNO -Mobile Network Operator-?

MNO VS BanksOn a very personal thoughts, I can’t see a link or even a symptom of war, both players are enriching the game and their targets are totally different.

There is a clear line that distinguish bank users from MNO users, I’ll call it the 5K line. In most countries, if you tried to open a new bank account you will be requested to deposit a sum of 5K -in average-of your local currency, while with only few cents you can get your self a new SIM card and start transacting immediately.

The 5K theory explains why normal or even advanced users may easily transfer 1,2 or 5K using their mobile phone to a relative or a friend. But we can’t imagine a user transferring 100K from his mobile, users are likely prefer to do this via bank branch or at least online banking interface.

I do imagine that MNO will attract low-mid income users and encourage them to use the banking concepts and functionalists and slowly advance them to be a real banking users. On the below selected units we will try to spot the difference and potentials for each one of the two big players.

Customer Base:

As MNO will not attract low-mid users which is more than 70% of any community, MNO will be the winner with the biggest customer base. On the other hand banks will have the elite and high value customer base with total of 30% of the population.

Transaction Volume and Count:

MNO targeted revenue is the transaction fees, and to expand their revenue MNO will keep pushing and inventing new services to push the money circulation to the maximum maximizing their revenue in reverse. MNO clear target should be minimum fees and small-mid amounts transferred in an insane and flashlight speed.

Banks will come in the second place from the transaction count, and ranked as number one in the transaction volume ,where Bank concept is to encourage users to leave their savings for as long a possible allowing the Bank to do a numerous projects and investment to generate its revenue.

Cash Flow and Circulation:

While Bank is capitalizing on the savings, MNO will circulate the money like thousand times more than Banks do, and the flow will always be at the MNO side.

Resident Balance:

Banks resident balances and saving amounts will be more than MNO, specially that MNO will keep pushing for fast money circulation and the network will keep cashing in/out rapidly.

User View:

From a user prospective MNO will offer me fast and convenient way to get a certain service and I will sacrifice with small portion as my convenience fees. As a Bank user I will expect some profit -interest- on monthly or annual bases against my savings.


As mobile payment era just started, its still too early to answer this point and nominate the winner, we will need to wait and see how it will go but I think we will some how end with an equal situation.

Finally, mobile payment will grow specially, when we are sure that both players will adopt the mobile as an official and convenient gateway for their financial requests and we will see an unlimited options and innovative solutions that is built and based on mobile handsets.

Khaled Sayed


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Bitcoin explained in nutshell

As an internet user you should be familiar with the open source term. Open source OS, office tools, graphic software or utility software.

Open source as a development model promotes:

  • Universal access via free license to a product’s design or blueprint
  • Universal redistribution of that design or blueprint, including subsequent improvements to it by anyone

Satoshi Nakamoto an anonymous internet user or group of users thought to apply a decentralized financial institution where anyone could join the community and be a part of a new open source money issuing system, not related or controlled by any legal or government. Funny!

Using a traditional Peer 2 Peer network and complex encryption techniques each connected client is now part of the new issuing system and in reverse he will receive his reward in bitcoin credits.

But How bitcoin get its value?

To answer this point we may raise another question why 1$ USD has a value? and the simple answer is 1$ USD is valuable cause you may exchange it with resources like a candy, gum or a small cupcake!

It’s valuable because your are quite sure that the candy shop guy will be interested to exchange his owned candy with your 1$ USD, the candy guy will exchange his candies because he is also sure that the coffee shop owner will be interested to exchange one of his hot espresso with his new collected 1$ USD.

It’s all a bout trust, where all the traders trusts that the US government will back its issued money with resources to keep it’s value along the way.

In bitcoin world, where users participate with their computing power to collect the new digital coins, and because it’s a long process and it takes time users value the collected bitcoins and start looking for alternatives to collect bitcoins faster. May be they offer their advanced services is exchange of bitcoins rather than coins and it might be also cheaper or bundled with some promotional offers.

New attracted users will keep looking for bitcoins to benefit the price difference and the offers as well! This will soon create a cycle and community who value this digital currency and as much the community grows the bitcoin value grows in response.

Back to our previous 1$ USD and imagine that you are lost in a desert between a group of people, and you had the last and only cupcake which will give you an extra 5 life days with a wise consumption. Will you trade your life-cupcake with 1$, 10$, 20$ or a Million USD!

That’s why bitcoin has a value!