There might be hope, after all
BlackBerry will not give up. Even though their latest generation of SmartPhones is not really taking off, the Canadian firm is still trying to find avenues to stay afloat. There was a first move opening BlackBerry Messenger (BBM) to other platforms, followed by the latest announcement of a pilot to allow monetary transactions over BBM. There might still be hope for the Canadian manufacturer, by focusing in monetising what once made them strong: Their level of security, and giving up what they are not really catching up with: Mobile Devices.
There are certain markets where BlackBerry remains strong, and where BBM enjoys a greater market share than WhatsApp (India, Indonesia and Canada amongst a few others). Seems logical to capitalise on their success in these core markets as well as the dominant position of BBM as the messaging app of choice.
Indonesia, once known as BlackBerry country, still accounts for more than 15 million users, and is the market of choice to launch their latest proposal, one that could definitely help increase the loyalty of Indonesians to the brand, but not sure whether it would be enough to attract new users to the platform. Named BlackBerry Money, the app allows BlackBerry users to link a bank account to their BBM identity, allowing to send money to other BBM users. In essence, a stored value account gets associated to the users BBM identity, where money can be used to make payments to friends and merchants. It can also be used to buy airtime from the user’s carrier and to send money back to their bank account upon receiving payments.
There are quite a few mobile person to person payment solutions available, but the market is quite fragmented, with no proposition really having the critical mass required to become the de facto mobile payments standard. Barclays is one of the market players, with Pingit seeing quite a success in the United Kingdom. For BlackBerry Money to have a chance, it would need to be made available to all platforms where BBM is available. Only this way could it have the critical size to become the mobile payment platform of choice for consumers.
Processing the payment
One of the key aspects when monetising mobile payments is the payment processor. Google still looks shy with Wallet whilst Apple is yet to make a move. Both companies have an enormous amount of Customer credit cards on file, and would probably be tempting for them to materialise payments by using credit card issuers, although this might be a gross misinterpretation and they might have bigger plans in the making to eat the credit card issuers cake. In the meantime, BlackBerry is teaming up with local banks and going towards a stored value model which gives them a certain degree of freedom on processing and eventually establishing (and receiving) the fees.
Quite an interesting move from the Canadian manufacturer, and one that could mean there might be hope, after all.