Online Personals Watch: News on the Dating Industry and Business

Payment Processing Update

OPW - Apr 13 - Payment Processing is critical to a dating site’s success, yet is often confusing to many site operators. To make it a bit easier, Courtland Brooks has published a Payment Processing Primer called, So You Want To Get Paid, which can be seen here. 

In addition, we regularly look at a variety of processors and publish their information in an easy-to-use spreadsheet, which can be seen here. We examine Mainstream Processors, which process traditional credit and debit cards, as well as alternative processors that handle anything from Mobile Billing to Pay In Cash possibilities.

Our latest spreadsheet includes 4 additional payment processors including two mobile billing services.

·      iTelebill: Monthly reoccurring billing which complements and easily works in conjunction with your current traditional payment processing system.

·      Zong : Micropayments processing for sites selling individual items or services to their consumers.

·      AIBMS : Traditional payment processing through credit and debit cards.

·      GetGambit: Allows consumers to sign up for offers which then pay the dating site’s subscription fees.

Mobile billing is the fastest growing method of payment processing.  An estimated 3 billon mobile phones in the world, combined with an economy which has left many consumers without credit, have made SMS billing a common alternative, particularly in Europe.  Mobile billing, which also offers the advantage of anonymity, can increase a site’s conversion rates.

Should you have any questions about payment processing or would like to talk to us about increasing your site’s revenues and profits please contact Mark Brooks at Mark@CourtlandBrooks.com.

Scott Pattenden, Founder And CEO Of iTelebill

OPW INTERVIEW - Apr 12 - Scott Pattenden is the founder and CEO of iTelebill. His company was founded in 2008 and provides dating sites with the ability to let their members charge subscription fees through their mobile phone by using SMS. They work with Social Gaming, the Adult industry and as of about a year ago, the dating industry as well. - Glenn Millar

Why should a dating site care about offering mobile billing?
There’s a large section of the global population that doesn’t have access to a credit card or payment card. Beyond that, in the U.S. alone, about 1/3 of the population doesn’t have credit available on their credit cards as a result of the recession. There’s over 3 billion cell phones globally. So this, combined with many users’ unwillingness to disclose personal and payment data to third parties, makes an alternative payment offering quite essential.

And how important is mobile billing in Europe?
The level of credit card penetration in quite a few European markets is very low, particularly compared to the US. So, mobile billing, is even more important in Europe.

What are the key distinctions with the U.S. market?
The US market is still underdeveloped with its SMS technology, but after several years of slow progress, the last 12 months have seen phenomenal growth. These gains, coupled with the increased rate of card declines caused by the “credit crunch,” means that Mobile billing in the U.S. has been a real growth sector for us.

What dating sites are using mobile billing successfully?
White Label Dating and FriendFinder Networks have added our mobile billing solution to their existing offering. The Dating Factory has built our technology into their platform from day one to maximize the revenues they can generate for prospective partners. We are fortunate to have taken on some excellent clients who are really expanding their horizons and their billing options.

What evidence have you seen that mobile billing raises conversion rates?
Our implementation on mainstream sites has seen 10-15% added to their existing revenue streams. On adult oriented or niche dating sites, that figure has topped 20%. At the end of the day increasing consumer choice is always a positive in terms of end-user conversions.

From the consumer’s perspective, how difficult is it to charge via SMS?
We designed our system to minimize user inputs. All the user needs to do is send a keyword to a short number by SMS and then click continue on screen. We handle everything else from that point on. Even subscriptions and ewallet “auto top-ups” require no further user input; much the same way a subscription card payment is handled.

Isn’t mobile billing extremely expensive? If the customer chooses mobile billing, won’t it cut into the dating site’s profits?
This is a common misconception. We recommend passing all additional costs onto the end user. This ensures that only members not currently billing by card will choose mobile billing. Since these people are not willing or able to use a credit card, these mobile billing customers are “found” money; incremental revenue from customers who would have previously left the site at the payment page.

But if you are going to pass the cost on to the consumer, why would they ever choose mobile billing over a credit card?
Personally, I am more than happy to pay by credit card, but data shows I am in the minority. A 2009 report from the Office of Fair Trading in the UK found that 1 in 3 people were still not making online transactions, with a lack of trust in security of their online data listed as the main reason. A whopping 78% of people who already make some purchases online said that the same reasons held them back from making more. In the dating market, people are also attracted to the anonymity that mobile payments offer and are more than willing to pay the premium for this service.
Source

In the U.S. you can only charge $10 at a time through SMS. Most dating sites are more than $10 per month. Doesn’t this make SMS billing impossible in the U.S.?
We have several innovative “work arounds” in place to enable us to bill more than that, such as billing on consecutive days on “separate” monthly subscriptions to hit higher targets. The complexity and intransigence of US carriers leaves us with no other workable solution at present. However, the discussions around the new framework for 4G services should make things far simpler in the near future.

How do you prevent fraud, i.e. someone charging a subscription fee to someone else’s phone?
The user must have their phone in hand to charge to their number. Since mobile carriers consider securing the handset the end user’s responsibility, this is not an excuse for non-payment of outstanding charges. In addition, all our services are operated on HTTPS secure servers that are fully PCI compliant. We also check number ranges and usage patterns with several fraud detecting algorithms to minimize our exposure to fraudulent transactions. Finally, we have a couple of other methods as well, but I would rather keep those to ourselves!

See all posts on iTelebill

Ten Years For WebBilling.com

PRESS RELEASE -- July 16 -- WebBilling.com celebrates ten years of continuous service to the online commerce community. Webbilling.com specializes in providing features not generally associated with available 'direct debit' solutions, including capability for immediate access, recurring billing, trials, crosssales, upsells, escalating security levels, pay-per-view, pay-per-download, pay-per-package, one-time and hard goods sales and one-click sales.

Obopay Selects Iovation

BUSINESS WIRE -- Apr 9 --  Obopay, the pioneering service provider for payments via mobile phones, is implementing iovation ReputationManager™. Obopay will use iovation's device-based fraud management service to reduce online fraud, improve operational efficiencies, and increase revenue through more precise risk management. FULL ARTICLE @ BUSINESS WIRE

TrustCash And Paivis Partners

MARKETWIRE -- Feb 19 -- TrustCash, the anonymous payment systems provider, and Paivis, a telecommunications carrier that sells prepaid "point-of-sale activated" and live cards, begin working closely together on numerous aspects of their businesses. One project which will benefit from this integration is a pre-paid debit card.

Dating Direct Has A New Mobile Payment Solution

TRADING MARKETS -- Nov 21 -- MIG, a multimedia mobile interactive services provider, delivered the first on-portal mobile payment service for Dating Direct, called Payforit. The key features currently include: trusted user functionality, flexible subscription engines, consumer identification. FULL ARTICLE @ TRADING MARKETS

Mark Brooks: Email me at mark@onlinepersonalswatch.com if you'd like a free copy of my 20 point analysis of 15 payment processors. 

Camazon To Offer Trustcash Payment Option

PRESS RELEASE -- Nov 13 -- Trustcash signed Camazon a leader in adult personals. Trustcash offers consumers the ability to pay for internet services by credit or by cash through debit cards purchased at retail locations, anonymously and with complete privacy. FULL ARTICLE @ PRIME NEWSWIRE

Trustcash Hires Courtland Brooks

PRESS RELEASE -- Nov 5 -- Trustcash Holdings, Inc., a pioneer of anonymous secure payment systems for the Internet, has hired Courtland Brooks, a boutique consultancy exclusively serving Internet dating and social networking companies. Courtland Brooks will provide media-relations services and business development strategy. FULL ARTICLE @ PRIME NEWSWIRE

Mark Brooks: Courtland Brooks is my boutique consultancy. I started it in January 2005 and provide PR, business development and strategic advisement services to internet dating companies and social networking companies. We are a team of seven. Clients include PlentyofFish, World Singles, College Tonight, myPartner.com, eLove, iovation, Jangl, Trustcash, and some other early-stage startups.

Trustcash Teams With IwantU

PRESS RELEASE -- Oct 18 -- Trustcash, provider of anonymous secure payment systems for the internet, has just completed a 6-month controlled test with IwantU dating site. IwantU revenues increased 7% from the enhanced financial payment options primarily due to new users who otherwise would not have joined the site. FULL ARTICLE @ PRIME NEWSWIRE

Trustcash Announces Agreement With ElectraCash

PRESS RELEASE -- Sep 25 -- Trustcash Holdings has signed an agreement with ElectraCash that will enable customers to use their bank accounts to purchase Trustcash, a secure and anonymous online payment system. ACH eCheck payments are the most common application on the internet today and are growing at 40% per year. FULL ARTICLE @ PRIME NEWSWIRE

Trustcash CEO, Greg Moss - Interview

OPW INTERVIEW -- Sep 25, 2007 -- It's no secret that the more options you offer for payment, the higher your conversions. Mastercard, Visa, Discovery, Amex... and Trustcash is another to consider. Tens of millions of potential internet daters don't have credit cards in the U.S.A. Many more don't really want a dating site showing up on their credit cards. So, you really, really should offer some kind of prepaid card cash payment method. Trustcash has internet dating industry experience. Here's my interview with Greg Moss. - Mark Brooks

What is Trustcash’s founding story?
E-commerce has had strong consistent growth year in and year out since inception. With growth like this in any industry come various risks. In this specific case it happens to be increased concerns with privacy and security After recognizing this an opportunity presented itself to create a stored value transaction system that would allow anyone with Internet access – even those without credit cards – to buy anonymously and safely online just as they would at a traditional retailer today with cash.

I can walk into a store today and buy a magazine with cash and no one will ever know I made that purchase. And it’s secure. That’s what we’ve built here at Trustcash.

What does the service do?
Basically, the service allows people to take a $50 bill and insert it into their computer. People can go to one of 60,000 Trustcash designated retail outlets throughout the country, hand the clerk cash and in exchange receive a Trustcash number that is similar to a credit card number, but without their personal data tied to it. It’s a unique 12-digit alphanumeric number worth the dollar amount paid and you can take that number and use it to make online purchases at merchants that accept Trustcash as a form of payment. This includes hard goods, services and subscription based businesses. By using Trustcash for their online transactions people can keep their transactions private and, since there is no personal information tied to their Trustcash number it is secure from hackers and their private life is kept private. This type of transaction has also given a whole new opportunity to people who are unbanked or under banked. Over 50 million people in the U.S. alone don’t possess credit cards or don’t have the credit available to make purchases online. Trustcash gives these consumers the opportunity to get better product availability and pricing via the internet.

Where precisely can people buy Trustcash?
Today, it’s currently available in about 60,000 locations across the U.S.. We expect that by the first quarter of next year, we’ll take the service to an additional 60,000 locations internationally, beginning with Canada and then moving into Europe. Trustcash can also be purchased online using a credit card. This service is for customers who do not wish to give the end merchant their personal data or worry about their personal data being stored in an unknown database online. When buying Trustcash with a credit card, it is a one time purchase and all of your data is purged following the transaction. Beyond these forms of distribution, there are several more relationships in the works with both financial institutions and prepaid companies that will continue to increase our availability around the country.

Who are your signature internet dating clients?
For the last six months, we’ve been working closely with a leading dating company called IWANTU. They have been great to work with and extremely patient while we spent the time understanding who the target customer is and how we can help generate incremental revenue for their program. It is important to understand the space before you roll out in any real magnitude.

We have signed several more leading dating programs which are now in integration and currently have verbal commitments from another six while they review our merchant agreement.

How can you help internet dating companies make more money?
That’s the question and this is where it gets exciting. Social networks and dating sites have essentially become the modern day personals. The internet has opened this world up and plenty of people are coming to the dating sites. And although many will sign up for a free account, there’s a sizable amount that just won’t convert to paying customers. They get to a point where they feel their personal data will be compromised or they won’t be able to keep their private life private (perhaps someone in their life, like a spouse or significant other, will discover what they’re doing through a credit card or checking account statement). We give these people a sense of security. By keeping their private lives private and secure, we’re able to convert more free subscribers for these dating programs. We’re bringing them an entirely new market of customers who previously wouldn’t use their services out of privacy and security fears.

Who are your competitors?
Right now, we’re considered an alternative payment system. As far as competition, it’s tough to say that we have a direct competitor. There are a lot of companies – the PayBy Phone, ACH companies, Dialers, ChargeMeLater, PayPal, Google Buy,  all competing for the alternative biller spot with merchants. But, fortunately, these companies cannot offer complete privacy and most have swayed from certain verticals and markets. This has given us an opportunity to come in and demonstrate our value proposition to both the customer and merchant.

What are your goals for 2007 through 2008 for Trustcash?
I think we’ve discovered a market that has a big need for a service like Trustcash. Dating has proven that there is a large portion of free subscribers that truly need and want what Trustcash has to offer. Our priority right now is to hone in on the dating market and make sure we do a first class job with both the customer and the merchant experiences. In tandem we will continue to build our brand with traditional and non-traditional marketing campaigns. As for 2008 and beyond we will enter into mainstream verticals that make the most sense for the company based on the current demographic of our customer.

China Gets First International Online Payment Service

BIZ REPORT -- Aug 30 -- Alipay, a subsidiary of Alibaba, one of China's largest Internet companies with over 47 million users in Mainland China, launched a new service this week that, for the first time, will allow Chinese online shoppers to purchase products from outside China. Alipay, with a current average daily transaction volume of over $19.8 million, intends to have 100 foreign partners and an international volume of around $105 million a month before the end of 2007. FULL ARTICLE @ BIZ REPORT

Mark Brooks: The lacking online payment methods and modes and lack of trust is holding back the internet dating market in China.

No Credit Card? Bill2Phone!

E CONTENT -- Aug 24 -- The 13% of Americans using the Internet who do not have a credit card now have an alternative. Bill2Phone is a real-time payment solution that processes payments through a consumer's phone bill. Bill2Phone, which launched in early 2007, targets Internet-exclusive purchases, such as online dating services and music downloads. The company has partnered with over 1,400 local telephone companies, giving it access to more than 140 million households, including the difficult-to-reach unbanked and underbanked market sectors. FULL ARTICLE @ E CONTENT

txtNation SMS Billing Provider

STT PRESSI.COM -- Aug 14 -- txtNation is one of Europe's leading independent carrier-neutral SMS billing provider. txtNation has introduced several services over the years, the first being PEOPLEFIND, a leading mobile chat and dating application. mENABLE is an SMS and mobile phone billing option. The Mobile Marketing Association Awarded mENABLE the "Best Mobile Billing Solution" awards in 2004.  It is now focusing on markets in the United States and Asia. FULL ARTICLE @ PRESSI.COM

Mark Brooks: Does anyone know of any other SMS billing alternatives?  Please comment.

Wireless Digital Wallet

MEDIA POST -- Apr 17 -- Now, we'll be able to use cell phones to pay for entertainment content with PayPal Mobile via secure text messages. Universal Music Group plans to use PayPal Mobile to sell CDs. MTV will use the service to sell items from its Web store. Motorola, Obopay, TextPayMe, and Visa are all experimenting with wireless payment technologies.  FULL ARTICLE @ MEDIA POST

Mark Brooks: Check out the alternative payment processing convention www.asroc.com.  It's run by Marc Lesnick who also runs the internet dating convention www.idate2006.com.  Mobile dating is big in Asia because it allows a convenient mode of payment.  Less people have credit cards in China.