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Three ways in which advertisers can leverage mPOS solutions

CIMB Bank Bhd in Malaysia recently introduced a new player in the mobile payment solutions market. Claimed to be the first chip-based mobile point-of-sale (mPOS) solution to be launched in the market, this Plug n Pay solution is targeted at small to medium local businesses as they try to catch up with the demands of a growing number of mobile customers. The device, which costs RM 250 per unit, is a quick way to pay merchants using debit or credit cards in Malaysia. Merchants can issue receipts via SMS or email.
Solutions such as Plug n Pay can benefit merchants and customers for they make it more convenient to send and receive credit card payments in Malaysia via mobile devices. At the same time, mPOS solution also presents an opportunity for advertisers to be able to reach an aggressively growing mobile market.
#1. Offering value advertising
Mobile suppliers and merchants have already integrated digital advertising strategies with mobile payment solutions. The dominant idea was to offer customers value advertising in the form of coupons, deals and other offers that allow them to save money. Customer engagement is usually the primary goal of these value ads by way of increasing traffic and boosting sales. At the same time, mobile payment systems are already being designed to enhance customers’ m-commerce (mobile commerce) experience.
#2. Capitalising on customer data
Mobile payment solutions can give advertisers access to relevant data pools, which they can use to fine-tune marketing strategies. If integrated with a variety of other sources such as consumers’ browsing behaviour on Google or customer profiles on the merchant site, mobile payment solution can be a source of information that can create a more comprehensive profile of the target market. For instance, businesses using Plug n Pay may find out which offers customers like and which ones they tend to ignore.
3. Overcoming inherent challenges
Facebook has been aggressive in moving towards the mobile advertising space having partnered with advertisers to streamline the mobile payment process for customers, while allowing its advertising partners to present targeted ads based on the user’s spending habits. Some app developers are already making it possible to make in-ad payments, which can be adopted by merchants and business providers.
A major challenge in adopting Plug and Pay would be in starting partnerships among mobile payment solutions, telecommunications providers, and card issuers as well as between merchants and consumers. But perhaps the biggest challenge of all would be the customers — would they welcome an inevitable flood of offers and coupons each time they have to pay with credit cards — whether they are mobile or online shopping or making a transaction in a brick-and-mortar store? Is the mobile industry moving toward an advertising-driven innovation of payments, and if so, what will the differentiating points be?
The future of ad-oriented mobile payment solutions will definitely be under a microscope in the coming months but one thing for sure is that m-commerce is only bound to grow bigger. Advertisers must definitely study their markets and look closely at existing business models where mobile is concerned to help them find ways around the challenges presented.
The author, Naomi Ganhinhin, is the Copywriter for CompareHero.my, a financial comparison portal on Malaysia which helps consumers in finding the right financial products at the right price