Anyone else notice how eMobile is no longer described as the FASTEST mobile way to pay and accept payments?
The ABC Plumbing example used in the app description makes no sense at all. It doesn't account for any discounts given to the customers as incentive to use the app. Merchants will need to offer customers at least a 2% discount to use the app. Otherwise, customers will prefer to use their credit cards with 2% rewards.
Fun with numbers:
The typical credit and debit card processing rate is 3.25%.
Fees with eMobile including 2% incentive to customers:
Fees on a $10 sale are: 4.5%
(10-(10*0.98)+0.25)/10)
Fees on a $20 sale are: 3.25%
(20-(20*0.98)+0.25)/20)
Fees on a $275 sale are: 2.091%
(275-(275*0.98)+0.25)/275)
ABC Plumbing would be saving 1.159% (not 3.25%). This is by offering only 2% to customers.
The ABC Plumbing example in the app description claims that ABC Plumbing would save $92,478 per year. My calculations above show that this is grossly overstated!
The example uses 344 days per year ($268 savings per day times 344 days = $92,192 savings per year). This gives these 5 plumbers 1 day off every 3 weeks! Haha! Anyways...
eMobile and the customer loyalty/discount program at 2% would not produce savings of $92,478 for ABC Plumbing. It would actually be closer to $32,000. This still assumes that 100% of customers will be using eMobile! Which will NEVER happen! If eMobile grabs a 1% market share, ABC Plumbing will save $320 per year.
So the questions remain:
Are the potential savings worth it for merchants?
Will customers want to use the app?
eMobile is no longer described as the Fastest payment option. Merchants wait longer to get their cash (in their bank account)
eMobile is still claimed to be the safest. Although not tested in the real world yet. PLUS, most of the safety features are OPTIONAL and for an ADDED COST!
Account Verification Service: extra $0.25 per transaction
Identity Verification Service: extra $0.49 per transaction
Account Authorization Service: extra $0.49 per transaction
I still don't see why a CUSTOMER would want to use the app if the CUSTOMER wasn't getting MORE discounts/rewards than he is currently receiving. It is a real tug-o-war of savings between merchants and customers. In the end, there isn't much left for either side.
All IMO
