Mobility

Mobile Payment: The Linchpin of the Mobile Commerce Economy

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Executive Summary

Mobile commerce offers significant revenue opportunities for phone service carriers in the form of higher-priced data plans to customers who want to have mobile commerce capabilities in their phones, revenue from advertising carried over their networks and possible revenue from transactions. A key calculation for the carriers is Average Revenue per User (ARPU), which is overall revenue divided by total number of users. A fundamental business strategy for phone carriers is to increase ARPU, and mobile commerce provides an opportunity to do that in a big way.

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