BlackBerry Tries Money Messaging with BBM Money

Pilot in Indonesia Will Be Popular, But BlackBerry Must Consider Next Step


Last week the commercial pilot of BlackBerry's BBM Money launched in Indonesia. The service allows BlackBerry Messenger (BBM) users to make person-to-person payments in a similar way to the M-Pesa service in Kenya. Users can open BBM, select a BBM contact and transfer money to them in real time.

I hadn't initially expected BlackBerry to enter mobile payments. Handset manufacturers are not known to deploy their own independent mobile payment services. Only Nokia has tried, and its Nokia Money service lasted for about two years before closing down. (Although it's worth pointing out that this was more a result of Nokia's overall changing strategy in mobile rather than a failure of the service.)

Today handset manufacturers that are working in mobile payments are usually collaborating with other companies to provide the rest of the hardware for transactions. Most recent examples include Samsung, which worked with Visa to enable payments on Galaxy S III models at the London Olympics 2012.

bbm_money_logosCloser examination reveals that BlackBerry has actually taken a similar approach for BBM Money. The service stems from collaboration between PermataBank in Indonesia and UK technology company Monitise. BBM is essentially being used as a portal to facilitate digital payment transactions.

BBM Money could do quite well in Indonesia, but I think there are a couple of reasons why BlackBerry needs to treat any success with caution. Firstly, BlackBerry enjoys immense popularity in Indonesia, accounting for more than half the smartphone market. So customer response is not likely to be representative of the global market.

Secondly, mobile payment services are generally quite popular in emerging markets because of a lack of banking infrastructure. Users in Indonesia will be more willing — or have more need — to try such services.

Looking beyond Indonesia, I'm not sure whether BBM Money in its current form would fare as well in other countries. Services like mobile payments really need scale to lift off, but BBM Money is restricted to BlackBerry handsets. Indonesia may be a booming market for BlackBerry, but this isn't the case in Europe and the US, for example.

From my own experience of using BBM to message friends and relatives in different countries, I think the next step for BBM Money is to focus on cross-border mobile payment services. Of course, international mobile payments face considerable legal and regulatory challenges. Perhaps a partnership with an international payments company like Western Union would work.

Just as BBM provided a great new messaging application exclusive to BlackBerry users across the globe, I think BBM Money has the potential to also offer a truly innovative service.

This entry was posted on February 21st, 2013 and is filed under Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted By Digantam Gurung On February 21st, 2013


Comments
(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Verizon unveils ambitious plans to boost its wireless network in the US ahead of #5G deployment: https://t.co/0UeEBSfroj
Follow CCS Insight
Shaun Collins
RT @kestermann: Orange the latest telco to launch personal assistant. CEO @srichard introduces and demonstrates #Djingo on stage. #ShowHello
Follow Shaun
Ben Wood
Wow. @MyKronoz kickstarter campaign hits $4m for smartwatch with analogue hands. Impressive work by the team there.… https://t.co/EN0x25MCP2
Follow Ben
Martin Garner
@amazon launches DIY subscriptions service marketplace - interesting move with high potential for disruption. https://t.co/o6WxjfpYjv
Follow Martin
Geoff Blaber
RT @Mikel_Jollett: TRUMP: The protesters are paid. These marches are small. Well, here's Chicago today: https://t.co/iyfVfmFy8O
Follow Geoff
Marina Koytcheva
@nickmcquire @benwood @facebook @geoffblaber @martin_garner @shauncollins @George_CCS Don't judge too fast, dummy t… https://t.co/eokzYz2EdN
Follow Marina
Nicholas McQuire
Fascinating battle ahead> Microsoft starts integrating Dynamics 365 with LinkedIn to take on Salesforce https://t.co/LK9ftNAdPS
Follow Nicholas
Paolo Pescatore
#NABShow: One of the best racing car simulators I've tried and it's not #F1. Be rude not to try it again. On… https://t.co/oPqbilgGNu
Follow Paolo
Kester Mann
Just published – latest @CCSInsight Hotline provides an in-depth assessment of progress, achievements and challenge… https://t.co/oTpd8PLpg9
Follow Kester
George Jijiashvili
RT @benwood: Huge potential for VR beyond games. Smart move by @unity3d to move in this direction. https://t.co/OZSuFtG0M0
Follow George
Katie Taylor
Working on a new study on @SketchBookPro with the @AdonitNews Jot Touch stylus https://t.co/4m2Q9v0eUl
Follow Katie

Recent Blog Posts

Blog Post
Miles of Light Verizon to Buy Miles of Fibre for Fixed-Line and Wireless Se... Read more
Blog Post
Xiaomi Didn't Get the Big Device Memo Reveals Its New Mi 6 Flagship Phone On Wednesday at an even... Read more
Blog Post
Facing Reality Will Users Take to Facebook's New Dual Realities? For Faceb... Read more
More blog

Latest Company News

Blog Post
Sales of 5G Smartphones to Hit 100 Million in 2021 Over 10 billion mobile phones to be shipped in the next five... Read more
More news