Moving up a gear with Amex group contract
Courtesy of a deal with Amex subsidiary Payback, United Mobility Technology (UMT) is shortly to begin offering mobile payment services on a white-label basis across c 45% of Germany’s retail sector. Payback is by far Germany’s largest loyalty programme with 27.5 million users in Germany and 75 million worldwide. Of the former, seven million already use the Payback app and early adoption prospects should be boosted by plans for a heavily marketed launch. With PwC forecasting a 100%+ CAGR in the German mobile payment market to €1bn by 2020, UMT is set to become a fast-growing EU market leader.
UMT’s platform best in class
In its 2014 review of the German mobile payment market, PwC awarded UMT’s mobile payment platform “best mobile payment product”. Its ease of use for both consumers (easy registration, fast payment process, any smartphone) and retailers (no need to install any new hardware and technology agnostic via NFC, QR codes, barcodes, iBeacons etc) is a key competitive strength. UMT is also able to seamlessly integrate with third-party services such as loyalty schemes (Payback).
Payback contract to put UMT in the lead
UMT has a five-year contract with Payback plus an option to extend, which will start from the launch of operations (phased roll-out to Payback’s retailer base is planned from Q216). Based on Payback’s existing 8.0 million app users, UMT believes early adopters could number two/three million, which we see as achievable.
Business model: Transaction fees set to grow
At present, the bulk of UMT’s revenues are derived from setup fees and consulting work, much of which relates to preparations for the Payback launch. Helped by revenues from the Payback platform, UMT expects to see strong growth in annual licence and transaction fees and is also looking to repackage data generated from the platform, which could become a major future revenue stream. Elsewhere, the group is in advanced talks to gain new white-label customers and is expanding its branded mobile payments operator, iPAYst, across Europe. UMT is also looking to acquire firms that can use UMT technology to expand the value added for clients.
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