Sign up
Tech Capital
Why invest in BGO?
Big Picture

Bango has ambitious plans to dominate mobile billing payments

“We want to be in situation where we are processing the lion’s share of the biggest merchants’ digital business to mobile users”
mobile phone user
BigPicture
Pay online through Bango

Mobile payments platform operator Bango PLC (LON:BGO) is surrounded by big numbers.

The last test for its platform was for £5bn worth of transactions a year, but now it is working on handling £50bn of transactions or the combined business (more or less) of Google Play and Amazon.

WATCH: Bango Plc driving profitability further with new customers and routes

That’s a lot of purchases but Ray Anderson, Bango’s chief executive, is confident and ambitious.

“We want to be in a situation where we are processing the lion’s share of the biggest merchants’ digital business to mobile users.”

Interim results to 30 June showed end user spend (EUS) rose 138% to £220mln and remains on track to more than double for the fourth consecutive year.

READ: Bango surges after announcing Amazon UK hook-up

“January’s acquisition Audiens has added a completely new and high margin, revenue stream during the period and there remains a growing pipeline of new MNO/App Store integrations to complete as well as further Google Play upgrades, together representing well over US$4bn in EUS,” added house broker Cenkos.

The broker expects EUS to jump from £593mln to more than £1.3bn in 2019, by which time the business will be making a profit of £5.6mln and throwing off cash.

Cenkos notes recent partnerships have enabled mobile network operator (MNO) customers to sign-up for Amazon Prime Video in the US, UK and India, and Pandora customers in the US.

That has generated new subscription-based revenues for Bango.

Audiens participation

Audiens, meanwhile, will allow Bango to analyse the huge amounts of transactional data that flows across the platform and is a key component in its attempt to monetise this info.

“Mobile operators can extract more value from the carrier billing business by working with Bango and opening data monetisation is encouraging people to move over to the platform,” says Anderson.

There is an ‘air-gap’ between the mobile operator and merchant as neither wants to give their data to the other.

Bango, though, sees the information from both parties and through Audiens, can isolate and provide ‘pots’ of potential customers targeted anonymously.

Individuals, too, can see their own data, for example, their spending on a gambling site.

“The acquisition and further development of Audiens technology has been a core component in Bango’s strategy to monetise this data, leading to the creation of a new business segment,” said Cenkos.

What Bango does?

The group, which enables payments for apps and games including Pokemon GO, has been steadily adding new technologies to its offering, including direct carrier billing for physical goods (the Amazon Prime deal in Japan), resale and bundling for Amazon Prime in Indian and beyond, plus new payment methods such as digital wallets.

In its own words, Bango makes it easier for customers like you and me to buy digital content like apps, games and music on our phones and tablets. Once users are ready to complete their app store purchases, they just click once and they’ve paid.

The payment is charged to the user’s mobile phone bill, meaning that there is no need to enter card details or any other personal information.

Essentially, you can make app store purchases whenever, wherever and in one tap.

Bango has processed hundreds of millions of digital content payments for the likes of Amazon, Microsoft, Samsung and Google.

For each of these purchases made using Bango’s payment platform, the firm takes a small percentage.

Through all these transactions, Bango collects data by the masses, which it uses to generate unique insights into customers’ buying habits.

The company can then use this information to offer optimisation recommendations to its partners about how they could improve the user experience and, more importantly, how they could increase their conversion rate.

PhilW.jpg


Register here to be notified of future BGO Company articles
View full BGO profile View Profile
View All

Related Articles

Dancing Sikh
With 4bn tickets sold each year for Bollywood films, it is little wonder that India is taking an interest in GrooveME's hologram technology but that same technology can bring a bit of India to places such as Thetford

© tech Capital 2018

Tech Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed tech companies to interact with institutional and highly capitalised investors.
Headquartered in London, Tech Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.