Billing Revolution, a startup that offers a single-click billing and payment service for commerce transactions on mobile phones, is partnering with MoVoxx, a mobile advertising network that leverages SMS messaging, to place commerce ads on mobile phones.
MoVoxx advertisers can implement Billing Revolution’s one-click billing and payment service in SMS advertisements so that consumers can purchase products directly from the ads received on their phones. MoVoxx serves short, interactive ads under opt-in SMS messages for retailers such as Kraft, Sears and 1-800-Flowers.
Founded in 2008, Billing Revolution is trying to streamline mobile purchases by offering an easy- one click solution (similar to Amazon’s feature). Once consumers are ready to buy something from the Web from a vendor that employs Billing Revolution’s service for payment, they are taken to Billing Revolution’s purchase page where they input credit card information from their phone. Once complete, Billing Revolution automatically sends an SMS receipt to their phone, which contains a link. After clicking that link, authentication is complete and with all future purchases, consumers will need only to click ‘buy’ for a transaction to be completed.
Billing Revolution charges a 3.5% transaction fee plus 50 cents per transaction. With those fees it’s tough to take a cut from micropayments, which are already small to begin with. This is a particular problem with mobile applications,, because an app developer wouldn’t want to take a 50 cents cut on a song or app that was sold for $1 or $2 on the iTunes app store. Billing Revolution maintains that the service is targeted more towards substantial purchases like movie or event tickets.
And or larger purchases, Billing Revolution’s service could turn out to be profitable for e-commerce businesses who have mobile transactions. Mobile carriers generally take a revenue share in e-commerce transactions taking place on mobile devices. In some cases this can be as high as 60%. With commerce powered by Billing Revolution, retailers can bypass large carrier fees (but still have to pay the 3.5% percent and 50 cents transaction fee).
So consumers need to link their cards to BR’s system and publishers need to advertise on MoVoxx and then we will enjoy normal web banner click throughs or less given it’s a transaction.
Yeah, this will work.
The SMS providers will not like this at all.
This competes with Premium SMS.
It is simply not allowed by carriers to abuse the SMS system and take payments offline.
I give them 30 days before all the carriers reject their short codes due to “Non Traditional SMS Payments”
The 50 cent flat fee is a pity because it will give pause to businesses which might benefit from mobile payments as an added option and convenience for their customers: low-ticket books, dvd and other media rentals, take-out food, movie tickets for which 50 cents represents considerably more than a few percent of product price. There will surely be competitors who can do it cheaper. Their website FAQ also needs to describe what kind of UI, if any, they offer merchants to track sales. On the other hand, sign-up looks straightforward.
They make some crucial mistakes, but I will follow the steps of this company very close!
I think this is a great opportunity for advertisers. 3.5% plus 50 including credit card fees is a GREAT DEAL. What don’t you guys get?? Operators will never support physical goods or credit cards…
It kills me that we’re all still worrying about the Operators bottom line in this economy! Yeah, that is first priority in mobile-”what about the operator”.
My take (and i’ve been buying mobile media for 7 years) is that this is one of the first examples of ROI in a mobile ad campaign! Who cares about clicks on wap banners?-clicks don’t pay the bills kiddies.. How about sell products! How about; this drives data revenues to operators.
Jeff
huh? what’s the big deal.. you need GPRS or wifi / data connectivity to get “the job finished”… anyone can do this… great that they are streamlining it, but seriously.. WHAT is the BIG deal?
Interesting to see such pessimism from individuals. The industry has been searching in vane for alternatives to carrier managed billing.
I am all for solutions like this and intend to evaluate.
Sending SMS is expensive especially as this requires a Service Level Agreement that the SMS is delivered within reasonable time (less than 10 seconds).
As the US is running several years behind Europe /Asia in Mobiles, these type of solutions have been provided and failed in the market in Europe.
Premium SMS is organized and controlled by the operators and they will make sure they keep their control over this business.