![]() The key monetization and development areas for Swish lie in e-Commerce acceptance (displacing cards) as well as in recurring, in-app and Grab-Go use cases, which are still developing and remain underserved.Potentially Swish can move into recurring, or try to expand abroad in e-Commerce as an alternative payment method, but given the speed the solution was developing so far and the amount of time already wasted, this is unlikely.Swish generally doesn’t offer any other user propositions apart from the basic ones (P2P, e-Com, QR at POS acceptance).Late move from P2P into revenue-generating areas (POS and e-Commerce acceptance) poses questions over the feasibility of conquering those areas at all, especially now, after Apple/Android Pays already arrived in Sweden.Similar to Mobilpay: first mover, bank partnership, cashless society, high penetration of smartphones, high card rates and POS terminal prices Challenges (ahead) and Potential: Reach: 6.7M users, 160k companies in 2019. When it comes to POS pilots, then only started in 2019 (compared to 2014 for Mobilpay) and ![]() Moreover, when the solution was launched in 2016, the technical side of solution appeared not to be ready for the popularity the Swish had got - number of transactions was too high for backend payment infrastructure to handle them and e-Commerce product got shut down until being relaunched in 2017. While it took around 1 year for Mobilepay to move into e-Commerce, for Swish it took long 4 years. It basically mimics Mobilepay’s P2P scale-up success but when it comes to moving into acceptance Swish story is different. It is almost a twin of Mobilpay: runs on bank transfer rails, started with P2P, owned by a consortium of bank, uses national Bank ID for authentication. Swish is actually an older Swedish brother of Mobilepay, as it was launched a couple of months before. Threat from Apple/Android Pay which basically has a similar value proposition but with a better interface and more frictionless customer experience.Mobilepay customer payment experience is lagging behind this of cards in certain aspects: clunky POS payment process requiring opening the app and then scanning the code/connecting via Bluetooth and final confirmation, longer e-Commerce checkout compared to card-on-file.High user penetration does not necessarily imply high usage. Volume shift from cards to Mobilepay is still slow to happen.Increasing fees may potentially damage relationships with merchants Fees are low enough for scale-up, not high enough to make profit. Monetizing the solution is extremely difficult, even after such an impressive scale-up. ![]()
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