Posted on Wednesday, Mar 9th 2016
According to eMarketer, the total value of mobile payment transactions in the US will grow 210% this year to $27.05 billion. eMarketer estimates that mobile payments in 2015 in the US were worth $8.71 billion, with users spending an average of nearly $376 annually using mobile devices as a payment method. By 2019, mobile payment transactions in the country are expected to grow to $210.45 billion. Billion Dollar Unicorn player Mozido is already delivering strong products in this market.
Austin, Texas-based Mozido was founded in 2007 by Michael Liberty, a visionary in the mobile payment space. He is known as the inventor of the mobile wallet patent for under and unbanked consumers and has more than 40 patents either issued or pending in the United States and foreign countries within the segment. Mozido became the first company in the United States to launch a mobile wallet. The initial product was launched under the Trumpet Mobile brand.
While Mozido’s mobile payment platform is accessible to more than 6 billion mobile phone users in the world, it focuses on over 2 billion people who have mobile phones but no bank accounts. The company offers a secure, cloud-based, PCI security compliant white-label wallet technology that can operate on any mobile platform including Android, iOS, Blackberry, tablets, and basic feature phones. The platform integrates with both NFC or non-NFC enabled point of sales systems and is able to complete transactions in multiple currencies across multiple channels including mobile, Internet, IVR, and TV. It provides mobile solutions for services such as bill payments, airtime top-up, person-to-person payments, merchant payments, loyalty programs, direct deposit of government payments, and customized marketing for merchants, financial institutions, and government agencies.
Mozido is targeted toward markets like Mexico, Southeast Asia, and Africa where consumers are skipping banking and moving straight to mobile money and want to transact through SMS. But the company is also seeing strong traction in the US, where it has customers like Dairy Queen that offers loyalty programs to its consumers through the MyDQ app. The company has also tied up with several financial institutions such as MasterCard and the Jamaica Cooperative Credit Union to help its customers. Through its tie-up with MasterCard, Mozido allows users access to card top-up services and person-to-person payments. Its tie-up with the Jamaica Cooperative Credit Union has helped Jamaicans get access to a mobile wallet facility. Its biggest claim-to-fame though is its tie-up with MoneyGram that allows non-banking customers to send and receive money from MoneyGram’s locations using Mozido’s platform.
Mozido does not disclose its financials, pricing terms or even user metrics. It earns revenues by charging its customers a fee for maintenance, deployment, and support it provides for the platform. The company is venture funded so far with $307.2 million in funding from investors including H.R.H. Sheikh Nahyan, MasterCard, Tiger Management Corporation, TomorrowVentures, and Wellington Management. Its last round of funding was held in October 2014 at a valuation of $2.4 billion.
Analysts globally believe strongly that as organizations like Starbucks, PayPal, Amazon, Square, Google, Apple, and other third parties support for digital payments increases, there will be an increasing trend where consumers will move from plastic cards to mobile payments – irrespective of support from traditional financial institutions. Mozido realized this early on and has made a foothold for itself in the market by focusing on the consumers who do not have bank accounts.
More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion Dollar Unicorns. Unicorns will also be discussed with some special guests during our 1M/1M Roundtable programs over the next few weeks. To be a part of the conversation, please register here. The term Unicorn was coined in a TechCrunch article by Aileen Lee of Cowboy Ventures.
This segment is a part in the series : Billion Dollar Unicorns
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