Startup Model – Mobile Payment App

THE MODEL: A platform for users to make payments to others in their contact list. A user needs to download the app, create an account and link his/her credit card. To make a payment, the user has to enter the amount and phone number to which the money has to be transferred. The money is then transferred to the receiver’s app. If the receiver does not have the app, then a web link is sent to the receiver where he/she can fill up the IBAN to which the money needs to be transferred.

STARTUP: Lydia (French startup)

WHAT I LIKE

Core Idea – Making payments easy is great and will be adopted extensively.

Ease of Use – The app is very easy to use. Users can pay others with a single tap. Also the app uses QR codes and hence can be used on any smartphone.

Security – Card details are stored in Payline, the French leader in online card payments. Also every payment will require a user to enter a personal security code. If you lose your phone, you can temporarily suspend your account as well. All data and transactions are secure and confidential.

Banking Partners – Money in a Lydia account is stored in a BNP Paribas escrow account, which is guaranteed by Société Financière du Porte Monnaie Électronique Interbancaire.

CONCERNS

Competition – A lot of apps are entering this space. Having local partners and an understanding of the local market can prove to be advantageous though.