KushCash is a mobile payments solution that launched in 2005, and they’re pushing out a new version of the service this morning. Back in 2005, mobile person-to-person payments were seen as a viable niche, since PayPal didn’t yet have a mobile product. KushCash promoted their product to the urban elite – the surf and skater crowds in Southern California where the company is based.
Their world changed significantly in March 2006 when PayPal Mobile launched.
KushCash is a not-bad service but it requires a software download that most phones don’t support. PayPal’s solution uses the text message platform that all cell phones can access. Given PayPal has an easier to use product and it actually works on most phones, I was compelled to ask KushCash this simple question: How do you get over the PayPal hurdle?
The answer:
Hmmm…good question, how do we tackle that giant? We don’t. At least for now. Why tackle a bloated army when you can train a village of talented warriors from far away? I think that what KushCash offers is a completely different beast in its own – yes, of course we’d love users to use KushCash for all types of merchant, sales and personal transactions – and they do, but what I think that KushCash offers that behemoths like Paypal and other smaller competitors don’t is personality, ease-of-use and a fresh format and attitude. If the mobile payment market was set in an old black and white high school movie – we’d be the new student that arrived in the middle of the year. Handsome, yes. Smart? Yes. A rebel? Yes. But he loves his mother and comes home every night for supper, but tears it up on the drag strip after dark. We’re the first to offer social lending features and financial network bragging rights. Regardless of all of that, I think that KushCash would appeal to users that don’t want to use what’s out there. There are users that want a service that functions like Paypal Mobile, but maybe executes it in an easier and more relaxed way but backed with the same safe and secure financial/privacy measures. Feedback is great so far, we have surfers, bankers and babysitters that use KushCash for social lending AND for business.
We’ll check back in to KushCash in six months and see how they’re doing.
Pay-by-SMS is definitely the main avenue for mobile payments, however, Kushcash might be able to find opportunities through partnerships with other mobile app providers.
If their solution can be integrated on a white labeling/API – I can see some avenues that can be relevant (gaming/betting/ MoSoSo).
Paypal will always be there, but the mobile commerce zone is still open for challenges.
Kushcash could make it big….but it will have to develop a viral marketing effect or build something which soo cool that I would want my friend to receive money through it because I want to show how safe, secure and easy it it. Like the MySpace effect. Mobile usage for purpose other than SMS is still pretty low. ..so Kushcash has time until market matures….
This guy reminds me of “Poochie The Rockin Dog.”
For more info, read “episode notes” here:
http://en.wikip...w#Episode_notes
“Catch you on the flip side, dudemeisters!”
– pud
If KushCash is not even trying to compete with paypal, they have a slim chance – however, if they can eliminate the software download and try to work with the existing platforms (either text or MMS), they might have something which can become popular in no-time
Am I the only one who finds your statement, “…the urban elite – the surf and skater crowds”, strangely offensive?
The first link (KushCash) is wrong. It should be better to fix it http://www.kushcash.com...
KushCash’s comment is exactly what is wrong with alot of thinking at startups today. The speaker never addresses the question – why should users use KushCash over paypal. “[P]ersonality, ease-of-use and a fresh format and attitude” is not a business model, they do not go to the heart of the product (mobile payments) and do not provide any compelling reason to use Paypal over your product. They certainly don’t offer anything paypal can’t knock off.
What happens when surfers start a company.
In addition to the PayPal Mobile hurdle, the problem with mobile payments startups, just like the previous generation of web-based payments startups, is getting past the TRUST hurdle. Are you going to hand over your personal financial details, including bank account number, to a company with Kush in it’s name?
People reluctantly gave financial info to PayPal in 2000/2001 because it was the only way to pay for your eBay purchase without waiting 3 weeks for the check to get through the mail and clear. But for most consumers, there isn’t a similar reason to risk personal info with a mobile payments startup.
That said, there may be a decent opportunity for these companies to partner with financial institutions who are looking to jump into the mobile banking & payments space in 2008 and 2009.
Looks like another fat client approach! And fyi – PayPal isn’t the only one using SMS for mobile payments/banking. ClairMail (Marin County, CA) has received $20 million in funding in last 14 months.
please join the very long line of digital payment roadkill
6 month prediction – Roadkill.
I dont need to even defend why this will be, because I’m cool.
You know, like a surfer or skater dude. I bring a new attitude to company evaluations, being handsome, smart, and a rebel at the same time…
Dude, it requires a lame download that doesn’t even work! And as others have stated, there is no way I’m going to give my financial info to a company called Kush Kash that I’ve never heard of. I don’t care about the coolness factor when I am just trying to pay someone or get paid. This company is headed for a major wipe out.
there is no download needed and not reqired. It’s a bonus if your phone is supported, if not, just access the WAP pages by pointing your mobile browser to http://www.kushcash.com. Booya!
I am very sure that KushCash is very “secure and safe” because why would they be in the business of “money” which is an industry that depends on primarily high-end security system to protect people’s assets! I’ve seen the site and its clear to me that they are serious “enough” and at the same time makes it easy to use for everybody!
Hi guys – that was me that was quoted in the article.
(Yes, “Poochie The Rockin Dog.” )
Although Kushcash offers a java-based application and WAP link, you do not need to download anything to your mobile phone. We offer the web application, WAP and Midlet to conduct transactions remotely through your mobile phone, use the application or simply go to http://www.kushcash.com on your phone. So it’s WEB, WAP and Midlet!
Great article!
This uses J2ME, right? Does anyone know what the market penetration on this technology is, and what the trend line is like?
I think this is great. We went from carrying cash to not carrying cash only plastic and now with the birth of all these phone/computers why not have your banking done on the phone as well.
Tow thumbs up from me.
Java ME (J2ME) on cellphones is a PROVEN commercial success. There are more than a BILLION Java-enabled phones in operation, and 70 percent to 80 percent of the GSM phones are also equipped with Java (February 2006)
http://www.blue.../why_javame.htm
thats a nice percentage
Pride often humbles or even eliminates the greatest of warriors. If I had to choose between millions of customers and a suboptimal solution or hundreds of users and the perfect solution I would take the millions of customers every time…
Regarding post no. 17.
The market worldwide for J2ME handsets vastly outnumbers BREW f.ex. Qualcomm are expecting to have 158M BREW phones on the market by 2010 (lame), and most handset O/S comes with VM (java virtual machine)
If I am not mistaken the CTIA are saying that there are approx. 1.8B J2ME enabled phones in the world.
There is no doubt that the US needs to be present in this game as the Asian companies are looking to jump the US in this sector.
Also, I noticed that on the Kushcash website they do NOT require you to add your credit card and/or bank account info, it seems like its the customers choice once they feel comfortable.
This product has promise there needs to be more incentive and convenience from these sort of services or else there is no reason for it
…if i can leave my wallet back home..:D but still can get wasted.. just with my cell phone…thats way cool..why carry a wallet when u dont need it anymore….who gives a … about paypal…the underdog gets the attention…Its rumored that paypal had a lot of problem with their product even after the release…
(quoting)
crimson>> Dude, it requires a lame download that doesn’t even work!
Thats hillarious bro…u dont even kno how to make it work..but still u managed to leave a post…not bad
eh. . . lots of comment spam in favor of kushcash. . . lame . . .
DOA – and that’s only based on the answer they provided to a simple question. Sheesh! I was asleep by the third line… and I still don’t know what they were going on about…
Great question, I think effectively that it’s better to use the standard SMS or IVR plateform rather than to download something specific. PayPal Mobile is one example but Crandy (www.crandy.com) is an other one.
Re: personality, ease-of-use and a fresh format and attitude.
At Zopa we spend more time on credit checks, fraud prevention and money-laundering compliance.
And we just arrange loans.
Paypal describe themselves as being in a risk management business, which seems a little more realistic
I think you need to look at the mobile financial at a higher level.
If you’re following the game like I need to you’ll notice that carriers will be trying to get a piece of the pie as the world evolves around the cell phone.
So is SMS the way to go? Probably not…(look what Cingular said to PayPal). Should you have a check box that can be enabled if the need for SMS is needed. Sure….but you need to cover all of the bases.
First, you go after the mobile browser and deliver content to most of subscribers. This way you satisfy probably about 95% of the market. (maybe higher) [Internet enabled of course, and it will be free in the near future...just wait and watch!]
BTW: If you’re unhappy with your browser and you’re JAVA compliant, then go get Opera’s free version. Now you have a dedicated browser for PayCash Mobile…(sorry, had to get my product in there ! *8;)
Then you need a game plan to attract the other 5%. The power user who wants to use their JAVA, Symbian and BREW phone. This is accomplished easily as well. But that’s a topic for another day. BTW: All JAVA enabled phones are not the same. One works fine on a Blackberry, never worked on a Motorola. So now you’re cataloging all of the types of apps that have to been tweaked for a the consumers phone. (NOT the way to go)
Credit cards are not the answer. Now you have to add 1200 people to your roster just to track down problems and chase after the losers.
Regards Al
I have used both KushCash, PayPal and Obopay, and Obopay has the best service by far. The KushCash and PayPal services don’t really even compare to the Obopay service. Obopay’s is the only service that really seems ready for primetime.
Asher Schwartz? Come on you gotta be kiddin me! i actually downloaded obopay to my BB and it crashed my O/S. Obopay has been ripping of kushcash since the day they launched, I happen to know both people working for kushcash and obopay, and obopay has had a hard time coping with these urban guys taking over the space.
Are you kidding me Mark? Ignoring for a second that you undoubtedly do NOT know these people and are saying that only to make your argument look better, I’ll break it down very simply for you:
KushCash = $0.50/transfer
Obopay = $0.10/transfer
If you want to be a sophist and whine that Obopay is “ripping KushCash off,” go for it…I personally would rather pay 10 cents per transfer than 50.
It’ll be interesting to see where things are when you guys check in 6 months from now…I’m not so sure they’ll be anything to discuss…
Well Justin,
The funniest thing is that I know that you work Marketing for Obopay, so perhaps I know somebody in there… Perhaps I know Howard, or David S, or ex-VP Frank, but then again who knows. So before you start thrashing other people, take a good hard look at your self Justin. You are nothing but a spam artist working for a company that seems to be dealing in “below-the-belt” blows. Why is it that Obopay employees seem to be very disrespectful to other people? Tell me that justin?!?
Justin…. I did a little search for you online (makes it easier that I know your last name) and I found this
http://profile....iendid=81098287 (I noted that you wrote that you work for Obopay… hmmmm)
I really bothers me that somebody who likes STP can be so aggresive.
BYW I know some of the A&R execs with Universal, Sony, BMG and EMI, so if you want some leads feel free to post in here and I will help you out if I can.
Mark..
Mark,
You are kidding right. Kush Cash is smoke and mirrors, where is their distribution? Appication ? Funding ? – Obopay ignited the Mobile Payment category at CTIA in March 2006, Kush was no where to be seen until 3/4 months later. And even then they copied Obopay. You either do not know what you are talking about, or are intentionally misleading, I suspect you work for KushCash and are just making another feable marketing attempt….. Y
heh.. seems like obopay marketers are everywhere these days. for sure it ain’t the users making waves.
First off Marketers,
I am not trying to urinate on Obopays glory, and all I am saying is that when I downloaded the obo app to my Blackberry, it literally crashed my phone!!! Seriously, it crashed my phone, and I had to delete the app. and reset the phone. When Obo bought out billmonk they obviously piggybacked on KushCash’s IOU system, so I believe that I am right,o at least partially, when I say that Obopay rips off other companies. That said KushCash also have a lot of work to do, but I see a social angle, they are heavily funded, and they have a different approach to the market place. Now let me ask you one thing Alias, is there anything wrong with that?
What I am seeing is two players on an emerging market having different approaches to the market and both have decent offerings. Who agrees??
“Marketers” you guys should try to swap out the, probably prescribed, Meth pills with some Ritalin or perhaps some Kush??!
I wish you all a great day.
I’ve done a lot of thinking the last few days. I’m going to head on down to Sunny SoCal and join the KushCash Team. Is there any room for Justin too?
Talk is Cheap!
Well, the KushCash website is down these days. Not really all that surprising.
It was a jackass program in the first place, promoted and programmed by jackassery.
Saw this one coming a long time ago.