Interview with Mr. Mark Reiken, CEO Text2Pay

1. First of all, could you please share with our readers more about Text2Pay and how it came into being? Why a mobile SMS billing platform?


Having been in the mobile space for over a decade, we saw the market need for a global billing platform, which can be readily available to merchants and end-users. Text2Pay was developed to provide an alternate payment solution for online, mobile web & in-app companies. Text2Pay makes it easier for consumers to pay for virtual goods and services by using their mobile phone. With strong security and high conversion rates being the most important factors, our goal is to make the customer’s payment experience enjoyable, easy and secure.


2. Within Text2Pay’s current business model, the focus seems to be on the online segment. How does the mobile channel fit into this picture?


The mobile web landscape has exploded over the last decade so it made sense to incorporate a global mobile billing platform into a space that is so prevalent in today’s society. Everyone uses their phone to browse the web, play games and interact with family & friends and purchase goods & services. With mobile phone usage exploding, merchants are looking for frictionless alternate payment methods to sell their virtual goods and services. Merchants can take advantage of mobile payments to enable new revenue streams outside of credit card billing. We leverage direct connections with mobile carriers and aggregator around the world to ensure Text2Pay is globally available to as many merchants and customers as possible.


3. Could you tell us more about Text2Pay’s Tap2Pay service? How exactly does the process of integrating Text2Pay mobile payments into merchants’ mobile sites or applications work?


Tap2Pay enables merchants to integrate mobile payments into their mobile site or application. The Tap2Pay solution offers single tap purchasing through carrier billing, with built-in support for one-off and subscription items for virtual currency and goods transactions. It integrates with web and mobile sites on iOS, Android and Windows Mobile platforms via an HTML5 payment flow. This payment system allows merchants more control over their user interface and revenue stream. It’s an easy frictionless flow.


Tap2Pay enables developers to integrate mobile payments into their application with a simple API and Java Library. All you need to do is download the Tap2Pay Java Library and paste it into your Android application project build path. It’s that easy.


4. Text2Pay uses customers’ phone numbers to allow them to make payments. Couldn’t this be liable to fraud? How is security ensured if a person steals another’s mobile device?


There is no way for Text2Pay to know if a mobile device has been lost or stolen. Similar to a credit card when a mobile phone is lost or stolen it should be reported to the appropriate mobile carrier immediately to avoid fraudulent use. We obviously have fraud controls in place that limit transaction volume and we monitor irregular patterns to catch fraud early. We suggest that all mobile phone users protect their mobile phone with a PIN as to restrict access to the mobile device in the case that it is lost or stolen.


5. What user segments does your company target?


Text2Pay can be implemented across almost any application and be targeted towards most demographics – really, anyone with a smartphone can use our payment platform. Our clients include dating services, online gaming and file share websites – they all truly maximise our payment flow and provide an extra service to their customers. Text2Pay can be used for a whole plethora of virtual products and services. Any company that accepts small to medium sized payments looking to expand their revenue streams will have a greater chance to acquire new clients. Implementing another payment option will always be attractive to new or existing customers.


6. Have you set any transaction limits in order to deal with fraud risks?


Each country and carrier we work with have a different set of transaction limits that need to be followed respective to that countries rules and regulations around providing mobile services. What makes the Text2Pay platform so great, is that we have built in all of this compliance so the merchant does not need to worry about it.


7. You have got quite some competition in the online payments market. Could you please specify some features that set Text2Pay apart from other similar direct billing services providers?


Unlike other mobile payment services, Text2Pay offers a higher revenue share through direct carrier billing. Merchants can share in between 75%-80% of the revenue in markets such as UK, US and Germany. Our payout rates are monthly, which means revenue generated in June gets paid in July. We are continuing to expand and develop our direct billing relationships to enable us to offer higher revenue shares across more markets.


We have also developed a robust and comprehensive online statistics and analytics platform that enables real-time tracking of live campaigns. This platform enables our merchants to view statistics across all markets from an easy to read dashboard. Merchants can also drill-down into transactions to view statistics in greater detail.


One of Text2Pay’s defining features is the ability to ‘white label’ or customize the payment flow. Merchants, who want to retain branding throughout the entire billing process, can customize our payment flow to suit their brand; i.e. adding their logo, theme colours.


8. What are some of the main obstacles you have encountered so far? What are the top three concerns raised by merchants and individuals when choosing Text2Pay to make payments?


One of the most common concerns raised by merchants is the revenue share amount and settlement time. Mobile carriers are in some cases still keeping up to 50% of the revenue, which limits the use of mobile payments and does not compare to other alternative payment systems or credit card. For mobile payments to become a true alternative payment option when compared to credit card the mobile carriers need to reduce their revenue share to between 5% – 10% and increase the settlement time to a few days.


9. What next steps does your company plan to undertake?


We are reporting a month-to-month revenue growth and we aim to push that figure 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.



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