How To Create A Successful Mobile Payments App

HOW TO CREATE A SUCCESSFUL MOBILE PAYMENTS APP
2013, Whitepaper by judo Card payments for mobile apps +44(0)203 503 0600 customerservice@judopay.com

Executive summary
The App Economy is poised for a massive expansion over the

coming years. Globally it is expected to double by 2017 to a combined value of $151 billion.
Established businesses are set to fall behind as they repeatedly fail

to come to grips with an increasingly mobile orientated world.
Organisations that fail to take the app seriously as an independent

The majority of mobile device owners under 45 are using apps at least a few times per week the number of apps used per day per customer is expanding and will continue to do so
APP NATION 2013 REPORT
and unique entity will miss out on new trends in consumer habits.
The prices for innovation and dedication to a specically mobile

orientated experience will be considerable for new and established business.
16
YEARS
YEARS
Its taken the web about 16 years to get huge, but mobile is matching that in about 4
SIMON KHALAF, CEO OF FLURRY

Introduction
The quotes above predict an economy niche ready to explode. Mobile spending in Western Europe is set to increase eleven-fold to 19.2 billion by 2017. Currently 66% of payment processes attempted with mobile phones are abandoned before completion, with 46% of people failing to complete a purchase because the process takes too long that is, more than a 60 seconds to complete a payment and 41% failing to complete a purchase because it is too difficult to enter card information. Many established companies using traditional business models are still
Please wait
reluctant to take m-commerce seriously. According to Deloitte, 81% of retailers state that the objective of mobile for their company is to drive revenue to their website, as opposed to being a revenue-generating tool itself. This article aims to show why apps are consistently failing to meet consumer expectations and to analyse how the projected boom of the coming years can be realised. Our research reveals that the businesses who are most sensitive to the very real prospects of m-commerce as a separate phenomenon from e-commerce will steal ahead of the competition, but only if they are able to deliver the innovations that customers are increasingly coming to expect.
66%
ATTEMPTED WITH MOBILE PHONES ARE ABANDONED BEFORE COMPLETION
OF PAYMENT PROCESSES
Native apps vs hybrid apps

A native app is an application that has been developed for use on a particular platform or operating system. They can take full advantage of that operating systems features and its technological upgrades. Hybrid apps, however, combine elements of both native apps and web apps and are generalised for multiple platforms.
every 100 milliseconds in loading time results in a 1% loss in sales

AMAZON
The previous section is concerned with what established businesses are comfortable with and what they are prepared to try, regardless of the frustration caused to the consumer which is by no means insignicant.

Indeed, it has been found that 57% of mobile customers will abandon a site if they had to wait 3 seconds for it to load, while Amazon reports that every 100 milliseconds [a tenth of a second] in loading time results in a 1% loss in sales. In addition, native apps are up to 10-15% faster than hybrid apps, so if something takes 4 seconds to load in a native app, it could take 60 seconds in a hybrid. This kind of waiting time is responsible for many mobile cart abandonments. Any kind of lag in loading time for the consumer hinders your businesses ability to convert browsers into buyers. Yet established businesses refuse to address these gures, to the extent that by 2016 half of all apps are predicted to be hybrid apps. From a business perspective, based on existing market opportunities, this makes sense: hybrids are often cheaper to produce and take less time to develop for different platforms. However, while they help the business SO IF SOMETHING TAKES 4 SECONDS TO LOAD IN A NATIVE APP, IT COULD TAKE 60 SECONDS IN A HYBRID. in the short term they prevent the customer from having the kind of user experience they expect, thus risking damage to the business in the long term. When we add the stories of Facebook and LinkedIn to this mix, the argument for the development of native apps over hybrids is very strong.
The success of Facebook and LinkedIn

Facebook and LinkedIn recently switched from hybrid to native
&
apps. Why? Plenty of reasons have been given for this change, but the common theme is that they are much more concerned with user experience than with their development teams woes. One major reason for this switch was speed. A native app will always be faster and smoother to use than a hybrid app. Native apps are also noted for their responsiveness. When you move your nger across a screen a native app will respond almost instantaneously: it feels like the features of the app are physical objects rather than mere pixels on the screen. The same applies to smoothness. Animations and movements will always perform more smoothly in a native app: they look better and

feel less clunky than in a mobile website or a hybrid solution. LinkedIn have spoken publicly about their decision to change and have gone some way to debunking many of the arguments that developers use to support web-apps (hybrid apps) or mobile-sites: Kirin Prasad of LinkedIn says that A few things are critically missing (for hybrid apps). One is the tooling support having a debugger that actually works, performance tools that tell you where the memory is running out. Another distinct advantage of native apps is their local storage capabilities, meaning you dont need an internet connection in order to use them: you can save your work locally and then the app will connect or upload it once you have internet access. This is particularly useful for professionals on the go, for example, as they can update their LinkedIn prole during that rare spare time when travelling to and from business engagements. Prasad contrasts this with the burgeoning support available for native apps: If you look at Android and iOS, they are two very large corporations that are focused on building tools to give a lot of detailed information when things go wrong in production. Prasad goes on to say that with mobile websites and hybrid apps those same kind of tools are often difficult to nd and often ineffective.
A few things are critically missing (for hybrid apps). One is the tooling support having a debugger that actually works, performance tools that tell you where the memory is running out
KIRIN PRASAD SENIOR DIRECTOR OF ENGINEERING MOBILE, LINkEdIN
42%
MObILE PAYMENTS APPEALING.
ACCORD RESEARCh CONSULTANCY
Despite this there are some serious objections to the adoption of native apps. Many of these have been put forward by app-guru Jacobi Nielsen, who suggests that developing apps (already a costly undertaking) will become more and more expensive with the rising costs of the platforms for which they have to be developed, citing the fact that iOS has already forked into iPad vs. iPhone and that Kindle Fire has effectively forked Android. Again, these hurdles are business-centric and can only be overcome by businesses choosing to tackle them for the benet of their customers. Nielsen might be correct about increasing app development costs, but the evidence suggests that the rising use of mobile apps to make payments will more than compensate for any increase in development costs. Making mobile payments appeals to 42% of Brits, while in Malaysia 56% nd the idea of immediate mobile payments extremely or very valuable. These are among the highest levels of interest recorded
OF BRITS FIND MAKING

by ACCORD Research Consultancy when testing the appeal of new concepts. Matthew Baxter-Reynolds, an independent software developer in the UK, sums up the pros and cons for the user when considering native vs. hybrid: If you look to connect with your customer via a mobile web app (a handshake) and your competitor offers them a cuddle with a better native app experience, you will lose, regardless of the eloquence of your argument or the sophistication of your engineering.
Aligning business and customer needs

The last two sections reveal the core of the argument over the longevity and value of m-commerce: established businesses are the major barrier to the proliferation of m-commerce. Like Facebook and LinkedIn they are able to capitalise on the positives m-commerce can bring to their customers, yet unlike Facebook and LinkedIn they are lazily unwilling to
CONNEcTING WITH cUSTOMERS VIA A MObILE WEb APP (A HANDSHAKE) cOMPARED TO A cUDDLE OFFERED bY A bETTER NATIVE APP EXPERIENcE.
MATTHEW BAXTERREYNoLDS SOFTWARE dEVELOPER
do so. The most successful apps will be those who operate under the old adage, the customer is king. These apps will be produced by businesses that correctly recognise the app as a unique entity, and therefore as a unique opportunity to reach out to their customers and deliver an exclusive experience. App success will depend on: discovering opportunities in existing and new situations; creating business solutions that are app-specic; and innovation. If businesses and entrepreneurs bear this in mind, they will nd themselves signicantly altering the state of the market and unsettling the giants of the industry. As Simon Khalaf, CEO of Flurry says, Wake up and disrupt something. However, if apps remain merely the little brothers and sisters of the desktop website, they will not full the predictions of the app economy and businesses will fall behind as a result. The most effective and most popular apps will be those designed as individual entities (not simply an afterthought to a website) which directly address customer needs, and thereby offer a unique experience

unavailable anywhere other than through that app. We can learn an important lesson from Facebook and LinkedIns decisions to switch from hybrid to native: businesses must clearly understand the wider importance of the app and recognise its unique position and potential in the modern marketplace. Most importantly, however, businesses must be willing to make the right decisions to drive and ensure future success. Whether your business is developing an app, thinking of doing so, or just standing at the side wondering what all the fuss is about m-commerce affects you. A focus on the customers experience is the order of the day. Increasing democratisation of the marketplace is not limited to m-commerce, customer expectations of what your business can do for them will continue to rise across all sectors just how customerorientated is your business? HOW cUSTOMERORIENTATED IS YOUR bUSINESS?

UKs leading provider of easy, secure and end-to end mobile payment solutions for native apps to increase mobile conversions. Fast transaction speed, intuitive user experience, simple pricing structure, highest security standards and seamless integration with native mobile apps puts judos technology ahead of the curve. Call us on 0203 503 0600 or go to www.judopay.com to nd out more.

How To Create A Successful Mobile Payments App

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How To Create A Successful Mobile Payments App

Uploaded by

Copyright:

Available Formats

HOW TO CREATE A SUCCESSFUL MOBILE PAYMENTS APP