People Actually ‘DO’ Want To Make Mobile Payments If It’s Easy Enough
I had a good feeling as the month of May was progressing we would be seeing some awesome Seconds numbers. But since we are now into June and I was able to get some time to crunch the entire May results, I am astounded by what we are seeing.
For those of you who do not know, Seconds is a fast and easy way to make payments with your mobile device. We automate payments through words sent in simple text messages (cool Siri video below) and shorten a minutes worth of transaction time into just a few seconds.
Below are a few charts specific to our pilot test around mobile payments. The first one is for total monthly transactions and as you can see, the growth from January through May is accelerating. (Chart actually starts with early testing in December.) In fact, the change from April to May is most impressive. In April we had 384 transactions and in May we completed 615 transactions. Blow-out month for sure!
Going further in depth on the numbers, some very interesting consumer observations emerge. We took the entire user population and parsed out categories based on the number of times an individual made a transaction. Specifically, we evaluated May and compared it to the previous month of April to see if we could identity any trends in usage. Here’s what we found:
1. The number of people making 10 or more transactions in a month DOUBLED! This means as months go by people become more comfortable with using the system and more apt to make a quick purchase in Seconds.
2. The overall user base grew 48% from April to May. We continue to gain more users who easily jump into the system and start making payments using their mobile device. Uploading payment credentials securely in the cloud just once is all it takes for a new user to start using Seconds.
3. Roughly 2 out of 3 Seconds users are multiple purchasers. This means they returned within the month and transacted at least twice using Seconds. This is a very good sign.
4. An astounding 82% retention rate is HUGE! More than 8 out of 10 users in the month of May were users in the month of April, proving that we are not seeing much drop off once an individual enters the system and starts using Seconds. Although adding new users is a driving force, more important is the ability to retain the ones you have already attracted.
Our assumptions are continually proven true and the lessons here are manifold. When offered a quick and easy way to complete a transaction using their mobile device, people do it! And time goes on people are more comfortable with making more payments by simply sending a text message.
Now, what if you could pay your rent that way? Or refill your transit card? Or rent a movie? Or all the other areas of your life you want to take care of in Seconds. That is why mobile payments are set to be a $1 trillion industry by 2016 and automated application-to-person payments are an estimated $100 billion industry. We are only getting started.