University of Oslo Social Studies of IT Workshop 2005Steinar Kristoffersen Mobile payments Informing...

Social Studies of IT Workshop 2005 Steinar Kristoffersen

Univ

ersity

of O

slo U

niv

ersity

of O

slo

Mobile payments

Informing a new design framework


Univ

ersity

of O

slo U

niv

ersity

of O

slo

The problem• Usage of mobile services is dropping• Revenue is down by a couple of %, even though

traffic still increases• New services are needed• Development costs are increasing and needs to

be recovered• Content providers fear alternatives to operator-

controlled billing are too cumbersome• This seems to implicate a need for m-payment


Univ

ersity

of O

slo U

niv

ersity

of O

slo

However,...• Can m-payment beat credit cards and cash?

– ”Mobilhandel”, a platform for mobile purchases have 40 000 users per week, according to Telenor

– Bank access card generate 460 million transactions annually

• Little evidence of users being too lazy to get a service that they need or want

• Mobile payment could offer ”fringe benefits”• Is this a disruptive technology ”in the making”?


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Vending machines and ’meters• Mpay in Norway (2005)• C-mode in Japan (2004)• Easypark and Telenor

(2003) • Telstra’s ”dial-a-Coke”

(2001)• Sonera’s ”Virtual Parking

System” (2000)


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Tickets• Octopus, Hong Kong

(”more than ecash”)• Prestige (London) and • __

– Basically pre-paidRFID-based travelcards

– Until ”value-added” services

• Cinema tickets– With “Mobile Purchase”


Univ

ersity

of O

slo U

niv

ersity

of O

slo

TV2 DropZone (i)• PDA service for TV2 and

HP in Norway• TV2 wanted to distribute

content effectively to customers with PDAs– News– Sports – Entertainment

• Content was updated continuously

• Synch-ed seamlessly even through intermittent connections


Univ

ersity

of O

slo U

niv

ersity

of O

slo

TV2 DropZone (ii)• Introductory free offer,

receiving a fair bit of attention

• Then, web-based payment

• No interest!• Then, included with web-

TV suscriptions, which are still successfully paid for with Payex

• Still no interest,...


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Norwegian Air Shuttle• Send SMS• Needs to have a ”mobile

purchase account” with Telenor, – Which is, Visa or– direct withdrawal for

smaller amounts

• Only selected flights• Cannot change• Need to check-in, • Etc.


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Content Provider Access (CPA)• Four digit access number• SMS redirected via

gateway to content provider

• CDR generated according to ”standard”

• Content (URL) return via push-WAP or SMS

• Operator collectsthe payment, on the regular phone bill


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Users trust of mobile payments

34 3538 39

45 43

3734

21 222725

0

25

50

75

100

02-Q2 02-Q4 03-Q4 04-Q3

YesNoDon't know


Univ

ersity

of O

slo U

niv

ersity

of O

slo

What do users make of it?• Method: Quantitative examination of the relationship

between – mobility, – emotive aspects such as trust, – experiences with m/e-commerce and – usability

• We carried out several pilots with small samples from various populations:– Students

• A: 27 from a course on Mobile Informatics• B: 58 from the Bachelor-program on Digital Media

– Random sample• C: 21 people (respondents, family, friends,...)


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Results from A• Young males paying for their own phone usage• Not very mobile • 75% have purchased mobile content and paid for it using

their mobile, – But, that was more than 4 weeks ago for 85% of them!– Ring tones and logos ”not very often”– Games and cinema tickets even rarer– Tickets to the cinema slightly more often on the Internet, but

even there airline tickets, e.g., scored 1.6 on a scale from 1 to 7 (1 being never), which is exactly the same score as for buying a pdf-newspaper and paying for it with e-cash

• There is nothing wrong with using the mobile phone to purchase content for the mobile phone, but there is nothing special about it either


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Results from B (expected)• People increasingly see themselves as

depending on their mobile phones• Trusting the technology is determinant of a

positive evaluation of the scenario as well as actual use (of mobile parking)

• Can be used ”everywhere”– Interesting scenario– Simple to connect– Better receipts


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Results from B (surprising?)• Anonymity – longer ownership• Anonymity – wants better receipts• Use everywhere – dedicated currency• Dedicated currency – age• Trust credit cards more – younger users

– Or, rather, ”older” users are less concerned?– But, this is one point where the low number of ”older”

user may (most likely?) invalidate the observation• Credit cards are unanimously more trusted than

m-payment• No correlation on mobility?


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Results from C• Experienced, professional PC/Internet

users– Generally positive attitude to technology– Specifically indifferent attitudes to their own

mobile phones• WAP• UMTS• Purchasing airline tickets using SMS

• One person mentions e-payment as an issue for SMS as an m-commerce channel


Univ

ersity

of O

slo U

niv

ersity

of O

slo

So, perhaps it is true that:• ”The days when billing was a simple back-office

administration function are long gone (Crookes, BT Technnol J 14(3), 1996).”

• The need is still there:– New services are required to defend 3G investments– Such services have to have a commercial soundness,

however:– Enrolment and overhead of preferred payment is

sometimes excessive, but still – That does not seem to hinder adoption

• What then, stands in the way of ”the best m-payment solution”?


Univ

ersity

of O

slo U

niv

ersity

of O

slo

The design framework• Consider payment as an integrated part of

purchasing experience

• Focus on the ”immediatness” of issuing confirmations

• Focus on the ”inspiredness” of buying• Model these aspects more precisely

Payment ApplicationConfirming receiptBuying

UsingWithdrawing


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Applying the framework

Same ”medium”

Different ”medium”

Immediately Later

CPA

Drop

Norwegian

Paying and buying

Confirmation


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Implications for mobile IS research• Mobility (in a physical sense) is not a particularly

interesting determinant• Technology can be good enough without that resulting in

adoption• Social vs. technological, push vs. pull

– The social construction of technology needs to be seen as technology actually being tested against user expectations

– Framing devices are recognizably rhetorical and technology still has to prove itself

• Disruptive innovation (seems to be) a post-hoc rationalization – Most successful companies do not end up implementing

disruptive innovation– But, then again, neither do ”less successful” companies


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Implications for m-payment • M-payment is about facilitating action in

mobile value networks, rather than re-representing value

• Payment is either an integrated part of the shopping experience, or it is a barrier

• The ultimate receipt is a confirmation that ”the product” works, therefore buying, paying and trying should take place in the same ”ambient”


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Summary• Mobility is not a particularly interesting predictor

of ”mobile services” adoption• There is an uninteresting contrast between the

”indifference” of mobile content and the ”heavy” enrolment needed for (alternative) payment schemes

• There is a much more intriguing ambient relationship between the ”hereness” of paying for content and the ”nowness” of testing it

• Users are not impressed by the services they have been offered by the industry. So far.


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Questions?

• Steinar [email protected]


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Epilogue (i): Mobile banking• 5% or 175 000 bank

customers in Norway uses SMS or WAP to do mobile banking– Account information– Money transfer between

(own) accounts– *Some* use it to pay their

bills

• 25% (800 000 customers) would like to be able to use SMS or WAP to do banking in the future


Univ

ersity

of O

slo U

niv

ersity

of O

slo

Epilogue (ii): Podcasting• ”Disruptively” similar to

Drop,– Radio from Internet

sources– Buffered and synch-ed to

the iPod from the desktop– Played back ”offline” when

it is most convenient• Popular hardware and

fashion is important• And, it proves that

nothing beats ”a free lunch”, after all,...

• Can the framework of ”dis-ambience” presented earlier be used to analyse iTunes and Podcasting?

BuyingIspaying

Paying andbuying are ”dis-ambient”

Immediate confirmation Postponed confirmation

CPA

DropNorwegian

iTunes

University of Oslo Social Studies of IT Workshop 2005Steinar Kristoffersen Mobile payments Informing...

Documents

Transcript of University of Oslo Social Studies of IT Workshop 2005Steinar Kristoffersen Mobile payments Informing...