The world of mobile payment solutions is incredibly competitive, as more and more projects launch in this jam-packed space. It was only a matter of time until the first shakeout of companies would happen, as not every solution is viable in the long run. For German mobile payments outfit Yapital, things have come to an abrupt halt.
Also read: Restricted WeChat Pay Expansion Shows Off Bitcoin’s Strengths
Otto Group Pulls The Plug On Yapital
There are a few factors that determine the success or failure of new payment solutions. Otto Group launched their Yapital project in 2011 and was one of the frontrunners to explore the mobile payment industry. However, being among the first to venture into a new market is not always a guarantee for success.
Yapital offered some interesting features, such as using QR codes to let people make instore and online payments, similar to how Bitcoin works. Additionally, Yapital users could pay bills with their mobile phones, which sounded like a great concept at the time of launch. Unfortunately, neither of these features proved to be much of a success, despite the headstart.
Otto Group identified the culprit of Yapital’s failure in the form of a very competitive market – especially over the past 24 months- and disappointing consumer take up. Mobile payment solutions will stand or fall depending on how many consumers actively use the application, and Yapital’s market share has always been fairly low.
But there was a positive side to Yapital too, as German retailers seemed keen on embracing the mobile payment solution. Come January 31, 2015, Yapital will be officially shut down as a mobile payment application, but it will stay active as an e-money institution for the b2b market.
“At the moment it is simply impossible to forecast business performance in this segment accurately – and above all, the development of the number of end-consumers. While we were already talking about the mobile-payment breakthrough three years ago, today studies indicate there are currently only 200,000 users in Germany.” – Yapital Executive Director Marc Berg commented.
Interchange regulations are making it difficult for any mobile payment solution to gain ground in Germany and beyond. This causes margins to fall for companies, and in the case of Yapital, it even lead to a reduction in workforce. Despite best efforts by the team, things just didn’t work out they way they could have.
Bitcoin Is A Favorable Solution
As these “hyped” mobile payment solutions are faced with the harsh reality ofn ot being as popular as everyone assumed, the weed will be culled from the chaff in the long run. Despite all of these changes and competitive strategies, Bitcoin trucks on, unencumbered by what companies are trying to achieve in the mobile payment space.
Regardless of how one wants to look at things, Bitcoin is the only global currency in existence today that does not depend on approval from banks or other financial institutions. Some people see this as a blessing, whereas others see it as a curse. But one thing’s for sure: mobile payments with Bitcoin are far cheaper and convenient than anything else that will come along in the near future.
Will Bitcoin conquer the mobile payment system in due time? Let us know your opinion in the comments below!
Source: Gruenderszene (German)
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