Paybox scraps m-payment service
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Paybox is scrapping its consumer m-payment service with immediate effect. The company promises an orderly withdrawal in the UK, saying that all outstanding transactions will be honoured.
Presumably there are job cuts, as Paybox is withdrawing from the UK market entirely. And from other European countries too - the German-based company claims 10,000 merchants and 750,000 subscribers for its mPayment service across Europe.
In a statement on its Web site, Paybox says it can see "no possibility for a single mPayment provider to develop the industry alone in the current industry conditions, especially amidst the discord between the other important market players (banks and telecommunications companies). The necessary growth and profitability can only be reached with many active market players, which have so far failed to appear."
The ending of the consumer mobile payments service follows a company reorganisation, which sees Paybox Group assume the shares of former shareholder Deutsche Bank.
The company has a cunning plan to save the day - promote its mpayment services through network operators and the like. The template for this is Austria, where Paybox's consumer service has been saved courtesy of Mobilkom Austria which now takes the reins.
Paybox says its new B2B focus will allow for a quick return to the UK. But what will the merchants do? How many will be bothered to set up yet another service.
Few people are making much in the way of revenues through people paying by mobile phone. After paying the service provider its cut, there is not much to go around. It so much easier to use PayPal.
Vodafone is perhaps the most active m-payment player left in Europe, through its service Vodafone m-pay. ®