How BPCE intends to establish itself in mobile payment with its S-Money application
BPCE bringing together in particular the Caisse d’Epargne and the Banque Populaire yesterday launched a new mobile payment application in a private beta version.
Called S Money, it should allow French mobile users to pay for all kinds of small purchases from local merchants but also to make payments from various merchant sites. In addition to payments, the application also offers the possibility of making money transfers between users.
A sort of electronic wallet, the payment service will operate from a regularly funded bank account. Thanks to S-Money, users should therefore be able to simply pay from their smartphone for a baguette at the bakery, a bouquet of flowers at the florist, a taxi fare or even a glass of wine at the local café or a lesson in mathematics to the private teacher.
Still in private beta, the application should be tested with certain customers this summer, then with the general public, from September, in the following cities: Toulouse, Bordeaux, Nantes and Rennes. The banking group specifies, however, that the application will not be reserved only for its customers but for any mobile user with a bank account. The service should therefore be generalized by the start of 2013.
The application will also be free for users. The business model will therefore be based on the collection of a commission from traders. The amount of this commission should change according to the volume of transactions. AFP specifies that traders “will not be billed per transaction but on a global amount achieved over a fortnight or a month. “
In the short term, professionals should also be able to benefit from various services such as increased visibility on the application, marketing options or even have a large database, under the agreement of customers.
Thanks to this service, BPCE hopes to position itself in a very buoyant market which is becoming more and more competitive. The idea is therefore to adapt to the development of new technologies, to changing lifestyles, but also to take advantage of new European regulations in this area, which make it possible to develop innovative offers.
With this in mind, BPCE has given priority to mobility, specifying that the service will first be developed on iOS and Android and then, subsequently, available on a website. The emphasis was therefore placed on simplicity, security and immediacy.
Due to its fluidity and given the video demonstrations, the S-Money application is therefore very close to the Skimm app, developed since last February by the eponymous start-up incubated at the campsite. Fair-play, BPCE recognizes that its service is totally in line with the same philosophy as the Skimm application. Proof, therefore, that this is a market with very high potential and which attracts more and more players every day.
The banking group emphasizes, however, two points that distinguish the two applications. In technical terms, Skimm relies solely on QR codes while S-Money remains completely open to other technologies. In addition, at the structural level, the S-Money application is fortunate to be able to rely on a very large group.
To face the competition, BPCE therefore intends to combine the agility of a start-up (the entity responsible for developing the application has the structure of a start-up) with the power of impact that a large group has. . S-Money thus hopes to capitalize on the banks’ goodwill to multiply various partnerships at high speed.