Price

Slides: Price

Price: value that is exchanged.

WhatsApp Used This Pricing Strategy to Win and You Can Too

Trends:

New Payment Systems

Apple Pay, and its impact on shaping mobile payments in the US

Online first, mobile, and offline solutions

Consequence of new Payment Systems

  • Reduced friction
  • More consumer data for merchant
  • Comparison shopping, couponing, loyalty cards, geo data
  • Complexity for simplicity
  • personalization ubiquity; ties everything together, price, location and promotion
  • Increased privacy issues

Roadblocks

  • Change consumer behavior (inertia) Baby steps (Apple)
  • Cost of legacy systems
  • Chicken-and-Egg dilemma
  • Breadth of competition: telcos, banks, credit card services, tech giants, entrepreneurs (Square), retailers, Point of sales systems
  • Innovator (focus and vision) versus incumbent (assets, cash, footprint)
  • Standardization of new systems
  • Adoption in less developed countries