New Ventures in Financial Services

Focus on Payments and Mobile

MPAYY

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mPayy Launches Free iPhone Mobile Payment App

12 January 2010

https://content.mpayy.com/pdf/merchant_integration_overview.pdf

Interesting effort by USBank, the key investor and  supplier of: technology, infrastructure, operations and Reg E compliance. Think of this as “merchant focused” paypal lite.. Sell merchants first.. (0 liability fraud) then try to get customers… Agreement states payment limit of $500 per MONTH. Banks have been trying to get moving with a paypal competitor for quite some time. Historically USBank has spent significant (well intentioned) effort in trying to get other banks involved in its efforts through groups like BITS, Payment Round Table, FSTC, … Given USBank’s majority investment here (rumored $5-7M) MPAYY may be able to patiently build the business through merchant integration.. (a long tough road). Paypal is well established in the CNP space, and their momentum is increasing…. it is tough to start any new payment type without a significant market driving adoption. Even today roughly 50% of paypal’s TPV is on e-Bay. MPAYY will be competing against a very well established team at paypal.

The paypal team is not only ramping up its merchant integration, with partners like Chase PaymenTech, it is broadening both consumer and merchant accounts internationally. Given USBank’s history, my guess is that they are making a strong play with other large US institutions to collaborate on a “paypal competitor”.

With respect to a “bank driven” mobile play (non card).. Cashedge is the clear leader watch here. With penetration into 60% of US Deposit accounts as the transfer service for: BAC, Wachovia, Citi, PNC, … Cashedge’s new POPMoney service will not only compete on P2P and Mobile.. but beyond.

For a bank friendly mobile “Card” play.. when will someone partner with Apple in putting NFC on the iPhone? Expect something soon.. VERY soon.

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Written by tomnoyes

January 12, 2010 at 12:54 pm

2 Responses

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  1. this is another great experiment by US Bank/Mpayy. The ecosystem is difficult to navigate. There may not be enough $ in the B2C opportunity–expansion will require free/cheap services.

    Remember Citi took an early run at Paypal with C2it, but premium pricing killed it quickly.

    Cashedge has a good shot because they have the ecosystem and fraud controls down pat, plus multiple revenue streams to help support the early days.

    Steve Kietz

    January 12, 2010 at 2:29 pm


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