Post on 07-Jan-2017
transcript
Popmoneya simple and secure way to exchange money
Secondary Research ReportMarisa Pecoraro, Lily Grant
Lydia Saggu, Emma Dougherty
(Popmoney, 2016)
History
About Fiserv
Fiserv was founded in 1984 via the merger of First Data Processing and
Sunshine State Systems (Fiserv, 2013). Fiserv not only functions as an
information management company, it is also an electronic commerce systems for
the financial service industry (PRSSA, 2014). This type of business helps
consumers and businesses learn how to manage money beyond the typical
realm of a bank with hard money. This is a growing market, and Fiserv has
expanded their reach to 13,000 clients and 22,000 associates worldwide. With
this huge clientele, Fiserv moves over $1 Trillion every year (Fiserv 2016). Fiserv
is not only growing in the realm of mobile and online banking, it also has been
expanding in the realm of mobile transactions among consumers. This growth is
represented by the 20 billion digital transactions (Fiserv, 2016). Furthermore, this
development is statistically represented through the 55 million people who use
Fiserv-powered online banking (PRSSA, 2014).
Fiserv’s Accomplishments
Fiserv has a history of business and information management. It has
divided these services into five main categories. “Customer & Channel
Management” is about creating and keeping customers and improving the
company’s retention rate and customer loyalty (Fiserv, 2016). “Insights &
Optimization” was created to help businesses achieve maximum potential out of
data (Fiserv, 2016). “Payments” through Fiserv is a program/service that uses
Fiserv’s money management and payment functions, but also will assist
companies with outsourced payment solutions to help make a more efficient
process for the customers (Fiserv, 2016). “Processing Services” works with the
‘invisible’ money management transactions, for example the “account to account”
transactions (Fiserv, 2016). “Risk & Compliance” is the final group of services
that Fiserv offers; Fiserv offers multiple methods for risk management and has
systems to “safeguard [companies’] reputations” (Fiserv, 2016). Fiserv is
specialized in many fields and disciplines in regards to information and business
management and monetary transactions. Within the previously listed sections
Fiserv has an array of specific services and products like Mobilitie, CheckFree
RXP, CUnify, Precision, Corillian Online (ASP), Credit Union Platforms, DNA,
Source Capture Solutions, Retirement Illustrator, and more (Fiserv, 2016).
Fiserv’s Goal
Fiserv is looking to expand the reach of their financial services by entering
the territory of money exchanging apps. A field that is ripe with competition,
Fiserv wants to add their own solution for quick transaction and banking with the
creation of Popmoney.
Product
Popmoney is a service created in the past few years by Fiserv; the app is
a mobile banking/transaction app that allows for “easier and more secure ways to
send and receive money… consumers can send or request payments directly
from their online or mobile banking service” (Fiserv, 2016). This product uses
existing checking or savings accounts but is trying to distinguish itself from the
other transaction apps by allowing people to use their phone number, email, or
bank account for exchanges. The multitude of access points allows for easier
and quicker exchanges (Popmoney, 2016). It differs from some of the
competition because it requires $0.95 transaction fee and can take a minimum of
one business day to process transactions. Popmoney is offering a more secure
platform with the help of their parent companies, which specialize in monetary
exchange and management (Popmoney, 2016). This app works with 1,900
different banks and credit unions and is available through the Google Play Store
or the Apple Store (Popmoney, 2016).
Market Analysis
Fiserv is one of the leading providers of information management and
electronic commerce systems in the financial service industry (Fiserv, 2014).
Over the past decade mobile technology has become an integral part of society
and banking operations. Fiserv, along with multiple other companies, recognized
this mobile shift and capitalized on the opportunity by creating mobile banking
and person-to-person payment services.
When the online banking industry was emerging applications only allowed
users to make payments less than two hundred dollars. However, today
consumers and businesses are able to make large and recurring payments
through these applications (Plunkett, 2016). A study conducted by Pew
Charitable Trusts in May 2015 found that only 22% of American consumers have
used their mobile device to send or receive money (WSJ, 2016), this statistic
demonstrates that the mobile-banking industry is untapped. Since 2014 Paypal’s
person-to-person banking service, Venmo, has experienced a 175% increase
(WSJ, 2016). The exponential growth seen by PayPal and the small percentage
of consumers that are aware of these services show that the mobile-banking
industry is just beginning to expand.
The environment these mobile-banking applications are operating in is
highly competitive and are rapidly changing. Internationally, mobile banking has a
stronger presence and a higher adoption rate than in the United States. Only 10
percent of U.S. bank consumers use mobile banking (NYTimes, 2010). The
meniscal amount of mobile bankers in the United States in relation to the amount
of smartphone users further reiterates the potential in this industry. Companies
are recognizing this emerging market and are responding (Mobile Banking and
Payment Revolution, 2013).
PayPal was the first corporation to capitalize on mobile banking; PayPal
began in 1998 and has since become the most dominant player in the person-to-
person electronic payment network. PayPal the parent company to Venmo, a
person-to-person banking application, allows Android and iOS users to send and
receive money for free. Venmo is one of the more social banking applications
because it is integrated with users Facebook and phone contacts. Square Cash
allows users to send money to an email address, the company partnered with
Snapchat to allow users to send payments via Snapchat; with Square Cash
users do not need an account, they only need a debit card. Square Cash only
charges a person if they are using the business version of their service, in which
case it is a 1.5% transaction fee. Dwolla allows users to send money to anyone
with an email, phone number or Dwolla account. Dwolla is targeted more at
business because it allows mass and recurring payments to be made
(TheSimpleDollar, 2016).
These corporations have promoted their service in various ways
throughout the expansion of person-to-person mobile banking. Venmo is about to
launch its first major campaign over multiple media platforms; the campaign is
targeted at the millennial generation (Fortune, 2016). Dwolla used social media
to generate brand awareness and promote the service through word of mouth.
The company primarily used Twitter to build an audience by sending Twitter
users who tagged them one dollar and later encouraged people to offer input on
their website in exchange for one dollar (Entrepreneur, 2011). Square Cash has
targeted their services towards business owners and non-profit organizations;
they have done most of their promotion through information television
commercials (Square.com, 2016).
Target Audience
Definition
A target audience is the audience that the product is intended for. It is a
specific group of consumers that the market plan has chosen to focus on. It is
highly important to perform a target audience profile during situational analyses
in order to properly identify all possible target audiences, and create the best
possible campaign strategies that will gain the target’s attention and business.
Primary Target Audience
About “55 million people already use Fiserv-powered online banking
services” (Popmoney.com). Popmoney’s primary target audience focuses on
consumers between the ages of 18 and 24 (millennials) who would most likely be
lending or sharing money with their acquaintances. Including but not limited to
college students, and working young adults who have disposable income and
young couples who are non-fund-sharing that would find the services Popmoney
provides useful (PRSSA).
Secondary Target Audience
Popmoney’s secondary target audience is people that are the most likely
to exchange money with such as parents or other family members they are close
to, roommates, and friends (PRSSA). They may exchange money with family
members for birthday or Christmas presents, sending money to children away at
college, roommates’ rent and bills, and friends, if they, for example, shared a
pizza and want to split the price evenly. Parents could also use Popmoney to pay
younger children’s tutor bills, or tp collect dues for soccer teams (Popmoney fact
sheet). These types of secondary audiences would most likely be in a close
vicinity to the primary audience.
Additional Possible Target Audiences
An additional audience that could be considered is people who run small
businesses. It can enable them to send invoices and receive payments as small
service providers conveniently and affordably. Popmoney makes it very simple
for small businesses to exchange money, which eliminates the tediousness of
sending paper invoices and checks (Popmoney fact sheet).
Another additional audience to target could be the banks themselves.
There are already almost 2,000 banks participating such as Citibank, PNC,
SunTrust, and more using Popmoney as an online service through apps on the
iPhone and Android devices, but there are more banks and credit unions that the
primary target audience is associated with that Popmoney could link with in order
to reach a larger target audience.
Importance
It is important to target these certain audiences because they all intertwine
with each other as audiences. If we target banks and small businesses, then
people are more likely to be introduced to Popmoney and will use it for person-to-
person payments. The Primary target audience is extremely important to target
because millenials with these circumstances are much more likely to use
Popmoney as a regular choice for transferring money electronically. Millenials
are already used to mobile and online platforms, so things that are quick and
convenient tend to appeal to them, making them the perfect target audience for a
product such as Popmoney.
Research
The following is research done by Nielsen explaining the differences in
online and mobile banking habits between baby boomers and millenials. This
shows that millenials are the right target audience because they are much more
likely to use the channel on mobile banking that Popmoney uses.
Challenges
Popmoney faces many issues establishing itself because it is a pioneer of
a new market frontier, and it has competitors who are offering the same product
with different benefits that may be conceived as better.
Competitors (Time)
Venmo
Verse
Dwolla
Pay Pal
Square Cash
Google Wallet
Payments in Facebook Messenger
clearXchange
Fee
Popmoney charges a $0.95 fee every time a user requests money or
sends money. This feature is its biggest drawback, because Popmoney’s
competitors offer the same service, but without any fees. People are more likely
to choose a free service like Venmo, because it doesn’t make sense for them to
pay for a service if they don’t have to.
Brand Recognition
Popmoney is not a well-known service. Its competitors are better-known. It
is available for many people through their banks, but “it is typically presented as
a feature within online or mobile banking and is not always prominently
displayed” (PRSSA). If Fiserv wants Popmoney to succeed as a service, it needs
to find a way to distinguish itself in the faces of its competitors, and become a
top-of-mind personal payment service.
Resistance Against Change
People are used to exchanging paper money and writing checks. Many
people enjoy the satisfaction of physically giving and receiving money and
knowing for sure that the transaction has been completed. So, it can be hard for
some to adjust to the idea of exchanging money through a mobile app or online.
This sort of thinking is mostly seen in older generations, like Baby Boomers.
Millenials have an easier time adjusting to the shift toward digital platforms.
Trust & Security
Users generally feel secure using online banking because they are used
to their bank handling their money. However, one may be wary of inviting a third
party such as Popmoney to handle their transactions.
There is a chance that one could receive a fake email from someone
using Popmoney as a front, but it’s actually a scam to steal someone’s money
and bank account info. Not everyone is able to recognize scam emails, in which
case online payment services like Popmoney are not secure. (The Balance)
Popmoney does not have “Buyer Protection,” so if something goes wrong
with a transaction and the user doesn’t receive their money, Popmoney cannot
be held responsible. Other payment services like PayPal do offer Buyer
Protection, and therefore are more secure. Popmoney has been used in email
scams, which isn’t good for its reputation, but so has Venmo, one of its top
competitors. (The Balance)
Popmoney is trying to promote paying relatively large sums of money
(over $400) using a mobile app, which some people may be wary of, since online
and mobile banking is a relatively new concept.
The Element of Time
One of the main complaints users have about Popmoney is that it takes a
few days for the money to transfer from one bank account to another. (The
Balance) This may not suit everyone’s schedule. Some may need the money
earlier and therefore prefer to pay directly in cash or check.
Complaints
Upon searching for Popmoney reviews, many negative complaints can be
found. Several users said it took several days to receive their money, and some
users claim they never received their money at all. Some users had problems
getting the app to function at all. These complaints are posted everywhere online,
which does not look good for Popmoney’s reputation.
The following webites list several complaints about Popmoney:
https://consumerist.com/2012/10/18/popmoney-seemed-easy-then-i-tried-to-
actually-get-my-money/
http://peer-to-peer-payments.credio.com/l/5/Popmoney
https://popmoney.pissedconsumer.com
Conclusion (Lily)
Popmoney is a personal payment service created by Fiserv.
Fee
Not top of mind--needs to distinguish itself from competitors
App doesn’t function well
Works Cited
Fiserv. Popmoney. 2016. 6 Sept. 2016.
https://www.fiserv.com/payments/personal-payments/popmoney-person-to-
person-payments.aspx
Popmoney. (2016). 7 Sept. 2016. https://www.popmoney.com/
PRSSA. 2014 Bateman Case Study Project Brief. “Popmoney Personal Payment
Service.” 6 Sept. 2016.
The Balance. FNBO Direct. “What Is Popmoney? Is It Legit?” Justin Pritchard. 27
July 2016. Web. 21 Sept. 2016. https://www.thebalance.com/popmoney-the-
basics-315142.
Time. “The Best Mobile Payment Apps for Sending Money to Friends.” Wolff-
Mann, Ethan. 12 Oct. 2015. Web. 21 Sept. 2016.
http://time.com/money/4041302/mobile-payment-apps-peer/
Plunkett, Jack W., Plunkett, M. B., Steinberg, J. S., Faulk, J., & Snider, I. J.
(2016). Smartphones and Financial Technology ("FinTech") Enable New Mobile
Payment Methods.Banking, Mortgages & Credit Industry. Retrieved September
21, 2016, from http://www.plunkettresearchonline.com.
K. (2010, November 28). Mobile Banking in the Emerging World. Retrieved
September 21, 2016, from
http://www.nytimes.com/2010/11/29/business/global/29iht-mobilebanks29.html?
_r=0
Side, R. (2016, July 23). The Battle Heats Up in Person-to-Person Payments.
Retrieved September 21, 2016, from http://www.wsj.com/articles/big-banks-join-
forces-to-compete-with-the-likes-of-venmo-1469266206
S. (2016, July 20). Best Apps to Send Money. Retrieved September 21, 2016,
from http://www.thesimpledollar.com/best-apps-to-send-money/
Gupta, S. (2013, February). The Mobile Banking and Payment Revolution.
Retrieved September 21, 2016, from The Mobile Banking and Payment
Revolution.
Lazar, S. (2011, December 9). How Dwolla is Building Its Brand by Giving Away
Cash. Retrieved September 21, 2016, from
https://www.entrepreneur.com/article/222536
S. (n.d.). Credit Card Processing & Business Solutions | Square. Retrieved
September 21, 2016, from https://squareup.com/
R. (2016). This Payment App Urges Its Young Users to ‘Pony Up’ in New Ad Campaign. Retrieved September 21, 2016, from http://fortune.com/2016/09/12/venmo-launches-first-major-ad-campaign/