2013-03-21, @BalticForge

WoraPay - demo results

We‘ve already have information from the creators of WoraPay about the testing of the new mobile payment system. The results aren’t so unexpected or shocking. To remind you, all wanting to test the new payment method were invited to Apollo bowling in Vilnius and SOKO juice in Forum Palace. According to Aurimas Bakas, CEO of WoraPay, the goals were to check the users’ receptiveness to innovation, the aspect of habit change, exclude the user segment and gather information on technical peculiarities.

The information about the campaign in Apollo bowling, where one could get 10 litas for purchases after downloading the app, was shared in social networks only. During this time more than 2000 people visited the website. At SOKO juice in Forum Palace the information was presented in a brochure and given away to everyone. As we know, Forum Palace’s sport club attracts a very different segment of people if compared to Apollo bowling.

“We’ve reached our goals and gathered much interesting information, so we can make right future decisions”, - says Aurimas Bakas. “We’ve also confirmed the marketing rule of 21 days – only after 3 weeks of sharing the information and giving away brochures the customers got the nerve and started using the app.”

As the app has a three level security system, it was very interesting to find out what security meant to users. “To our surprise, as much as 86% of the users claimed that the use of one PIN code only is totally sufficient when confirming the payment”, - wondered Vaidas Adomauskas, WoraPay CTO. After all, only PIN code protects your money if you lose your card, too. The system uses the American way of authorization, that is, the user is authorized at the retail spot before receiving the bill and not after the cashier puts in all the data into the cash register, which allows to minimize the payment time. Practically, the speed of putting in the PIN code is all the time needed to spend at the register. This is great news for retailers, as customer throughput is one of the critical parts.

As much as 98% of the respondents said they liked this payment method. When asked why is it worth using such payment means, 40% said it’s fast and easy, 30% - they can see the account balance, what can’t be seen on the card, and the vast majority wanted the possibility to add all discount and loyalty cards to their account.

“To our surprise, such basic service as a usual transfer to a friend, got the most points”,- says Aurimas Bakas. “Lithuanians are so spoiled by e-commerce, that the use of PIN without using the PIN generator is a huge achievement in the whole process.”

One of the biggest questions was – how would the users like to have their money: either adding funds to their account using e-commerce as a virtual wallet, or simply add their bank account to the app. The answers were quite unexpected: as much as 71% said they’d like to add their bank account and only 24% would still want to add funds to the account as in e-stores.

This is a pretty much clear signal to the banks that users want to see their account balance on-screen as opposed to a bank teller, and pay with their mobile in retail spots using just their PIN code.

Don’t forget that mobile payments are nothing new worldwide and similar Startups are appearing like from the horn of plenty, but, according to Aurimas Bakas, “WoraPay has its distinctions that are still innovative and unique. Those are: direct payments from one’s bank account and not the card, which is a push transfer, not a pull transaction as it’s with card (which means more security), and the main advantage – the payment speed. We’re also following the NFC technology trends and evolution and don’t completely rule out the possibility to integrate it, if it will appear useful to our customers. There is one problem, though, with retailers that have remote cash registers, such as restaurants or gas stations. In the NFC case, the user still has to physically approach the cash register (or the cashier has to bring the reader) in order to tap and pay. It’s also a huge headache for the retailers finance-wise (as they have to pay for additional equipment) and process-wise, when traffic jams occur, for example, during lunch hours.”

“We’re carrying out meetings with the managers of the biggest restaurant networks”, - further explains Aurimas Bakas, “and the possibility for the client to pay even without the waiter attracts them more than the possibly of a lower payment cost. We’ve counted that it takes 4 trips for the waiter to serve each table, and that’s if you can get one’s attention. The waiter will also have more free time to offer additional goods or services to the customers, instead of spending one’s time processing the payment.”

WoraPay system – means opening up of a fast new sales channel for the banks and a real mobile payment ecosystem.


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