25 September 2017
Matt Scott

Matt Scott

Matt Scott - RenovITe Technologies Inc

13Posts 66,453Views 145Comments

UK Consumers prepared to pay for NFC Prepaid

03 October 2011  |  3353 views  |  1

In a time of extreme economic sensitivity I was surprised to read details of a Simon-Kucher research exercise which concluded that the average price consumer are willing to pay to load a prepaid NFC e-Wallet is around £3 and that 65% of the public are eagerly awaiting this.  Now I am not normally one to criticise research exercises but I am fairly confident that either the research was conducted in a fairly affluent area or the interviewees didn't understand the concept that they would be charged £3 every time they wanted to load their payment instrument (which - if we consider normal prepaid loads are fairly low ticket values is quite a significant charge indeed, in proportion).


It will be interesting to see how these schemes transpire in the UK - I am eagerly awaiting O2's new offering which, if the marketing emails are anything to go by, should be announced in November this year.


Will Apples announcements tomorrow have any impact to this - tune in tomorrow to find out?


The Simon-Kucher research is detailed in this article on The Register http://www.theregister.co.uk/2011/10/03/nfc_payments_survey/



Comments: (1)

A Finextra member
A Finextra member | 08 October, 2011, 22:18

I think you are right.  Even the article doesn't believe the research.  Noone will pay £3 to top up a NFC wallet with, say, £15-£20 of funds.

And I do not see why 'most users' will not accept a per transaction fee, although I accept that current practice is for the merchant to shoulder the fees, not the consumer (they just set the price to cover this, so the consumer is still paying really).  

Someone has to pay the piper for the TopUp... if its from a bank account, there are charges.  If its from a mobile operator billing account, there are costs too.  The bank or MNO might be prepared to allow the TopUp operation for free if they know they are getting a small (per txn) payment everytime those funds are spent.  This involves the transaction processor calculating and then reporting who gets what and then the owner of the 'wallet' remits the various balances to the parties involved (e.g. to Starbucks, to Barclaycard, to the bank or MNO).  Obviously these remittances are aggregated and are not per txn.


Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Latest posts from Matt

Demystifying the Omni-Channel confusion

03 September 2016  |  8743 views  |  0 comments | recomends Recommends 0

ATM Shimming and The Death of EMV 2

31 August 2015  |  11127 views  |  3 comments | recomends Recommends 1 TagsCardsPaymentsGroupBusiness Knowledge for IT

UK Mobile Proximity Payments 2015

10 August 2015  |  6078 views  |  1 comments | recomends Recommends 0 TagsCardsMobile & onlineGroupInnovation in Financial Services

Will Host Card Emulation save NFC?

14 August 2014  |  3475 views  |  0 comments | recomends Recommends 1 TagsCardsMobile & onlineGroupInnovation in Financial Services

Pace of Change and Innovation

01 October 2013  |  3500 views  |  1 comments | recomends Recommends 0 TagsCardsPaymentsGroupBanking Architecture

Matt's profile

job title Chief Technology Officer
location London
member since 2009
Summary profile See full profile »
Leading the development of new software platforms and services.

Matt's expertise

Member since 2009
13 posts145 comments

Who's commenting on Matt's posts