Customers are increasingly using their mobile phones to pay bills instead of reaching for their credit card. Mark Reiken’s booming start-up Text2Pay hopes to make the transaction safe, quick and easy for both customers and merchants.
Since launching, Text2Pay has grown by an impressive 50 percent a month and will service 80 countries by the end of 2012. The award-winning business enables customers to securely pay for goods on their mobile phone with a single tap. The cost is then charged directly to the user’s mobile phone bill.
It sounds like a bulletproof concept but there were still a number of hurdles for the company to overcome. CEO Mark Reiken tells us more.
How did you get the idea for Text2Pay?
Text2Pay was born out of the need for a global mobile billing platform that is easy, quick and secure for all merchants and users. People are tired of lengthy credit card transaction sign ups – Text2Pay’s In-App product, Tap2Pay, alleviates this problem with 1-Tap Billing. It is seamless billing at its core.
What kind of growth is the business enjoying?
Text2Pay has experienced solid growth throughout 2012. We added over 50 countries to our Premium SMS and Direct Carrier Billing coverage list. Tap2Pay won the Mobile Payments Award at the Australian Mobile Awards. We revamped our merchant system to make it easier for merchants to set up campaigns and our Text2Pay billing platform has been embraced by numerous online gaming communities, dating websites and brands that accept donations.
What’s the most challenging thing about the mobile payment industry?
Merchants are concerned about the revenue share amount and settlement time. Mobile carriers still keep up to 50 percent of the revenue, which limits the use of mobile payments and does not compare to other alternative payment systems or credit cards. For mobile payments to become a true alternative payment option, the mobile carriers need to reduce their revenue share to between five and 10 percent and reduce the settlement time.
One of our other challenges is educating users about how easy and safe it is to use a mobile billing platform like Text2Pay. The technology is not new, but people are still in a credit card frame of mind. It literally takes seconds to set up a campaign in our easy-to-use merchant system which also has in-depth tracking and analytics.
What’s the biggest lesson you’ve learned so far?
To never give up even when something doesn’t work out the way you had planned. And always follow what you set out to do without letting external influences misguide you.
Tell us more about your global expansion?
We have added over 50 countries to our list of global billing networks. This proves that merchants and users from all corners of the globe are embracing mobile technology and specifically, direct carrier and in-app mobile billing. We aim to double this list in 2013 so Text2Pay can reach even more customers through virtual currency and services networks.
Are there any entrepreneurs you look up to?
I’d have to say Richard Branson for his tenacious audacity and willingness to keep pushing on. He’s gone from music to space travel. A true inspiration and role model for all entrepreneurs.
What tips would you give to someone starting a new business?
Stay focused on your business goals and set clear objectives. No matter what gets in the way, persevere and you will achieve your goals. And never aim too high!
What’s next for Text2Pay?
We are reporting month-to-month revenue growth and we aim to push our revenue higher as we approach the New Year. We have an aggressive global growth strategy with a goal to service 80 countries by the end of this year. We’re continuing to expand Text2Pay and always looking for ways to make our merchants’ lives easier. We have just revamped our website and have an exciting 2013 ahead of us.
