Nov 2, 2009
See previous post http://tomnoyes.wordpress.com/2009/10/13/nokia-moneyobopay/
Also See post on 11/12 Obopay India – Another Failure?
Just recieved notice today that the Citi/Obopay “pilot” is over… am I suprised? No, at least not with the service termination. From a Citi perspective, this was a 3+ year pilot without a business owner or business case and only 2,000 cusotmers (this is not a typo.. I’m not missing any 0’s). The original plan was to gain customer insight. Once Citi invested…. the pilot dragged.. as Citi’s participation provided “value” to Obopay. Key learnings for banks:
- do this “payments stuff” in your own environment, or manage pilots with a very well defined end date (less then 6 months).
- Once capital investment is made, heavily involve the supporting Line of business (note to innovation teams)
- Set clear metrics for success, and don’t be afraid to pull the plug
- Ensure customers are aware that service is a “pilot”. Take a look at this notice below.. move your money out of here in next 2 months. 4 years… not much customer communication on this one.
- Re: Payments. Banks should think long and hard before they enable the next Visa/MC. Do you really want to outsource payments? (Next week’s paypal conference will lead to some very disruptive stuff.)
- Fat clients on mobile phones have been a global bust over last 6 years. Sorry Apple (See Apple’s Payment Patent Here). This fat client failure has extended from mobile payment (Obopay) to mobile banking (see Firethorn is dead). iPhone is potential as a game changer, but Apple (the manufacturer) is trying to create a closed system without banks (Perhaps their brand is strong enough to make everyone ditch their exsting relationships… naa). The best hope for rich applications (FAT CLIENTS) may be NFC, but the MNOs and handset manufacturers are strategically delaying (subject of a future post).
So while the Citi-Obopay service termination is not a suprise, the ability for Obopay to attract new capital (without customers or much due dilligence) is amazing. Carol must be capable of selling sand in the desert. Given my interaction with “some very large” MNO/FSI mbanking heads in US, India, Asia, EMEA, … Obopay’s focus and “success” is much of a mystery (and not much concern). On the positive side they have an excellent marketing/alliance team.