Elizabeth Buse was named a outside director of Travelport US TVPT recently IPO's. Probably a shrug. Travelport provides computer systems services to multiple Airlines. What if she got them to use MONI to link so you could pay for tickets, check-in, and book-flights. Nothing worse than being stick at the airport when weather cancels all the flights and you have to wait in mile long lines.....just wondering.
Cramer's Shirt ‏@CramersShirt · Calling dibs on "aapl pay keeps you from handling cash with other people" thesis. #Ebola
Upside Part 3
In order to achieve an overall ARPU of £2.50 per year, we believe that Monitise would have to generate ARPU of £4.00 off 15% of its user base, which is not overly demanding, in our view. However, we remain more prudent and only assume that the company achieves 10% adoption and ARPU of £4.00 from commerce at this stage, notwithstanding that this remains one of the most sensitive assumptions in our financial model.
Upside Part 2
On top of these subscription fees must be added the potential contribution from mobile commerce (m-commerce) for Monitise. At this stage, we remain relatively cautious, but the added ARPU per transaction could be anywhere between 20p for a coffee offer up to £70 for an iPhone sale (which is then split with the bank). Therefore, the value to Monitise depends greatly on the number of transactions that a user conducts along with the type of transactions. Monitise believes that if 10% of the user base was using m-commerce functions, it could generate £10 ARPU. We sensitise below for differing levels of success in mobile commerce and what it could mean to Monitise's ARPU. This is based on our assumptions of Monitise's user base in 2018 for the core banking business and adjusting for commerce.
Upside From Commerece
ARPU upside possible from adoption of commerce Along with a strongly growing user base, Monitise expects to see its ARPU grow to at least £2.50 in FY18 from the £1.45 reported in FY13. In our view, estimating the expansion in Monitise's revenue per user is much more challenging, as it is extremely sensitive to the success the company has in building out its mobile commerce platform. In order to provide a framework to help investors understand the potential revenue generation, we have built a relatively simple model, based on the user base that Monitise already has in banking along with the potential new additions the company could see, as mentioned above. It is worth noting that with the change in its marketing approach that Monitise announced in March 2014, instead of charging upfront fees and subscription fees based on user adoption, Monitise would focus only on subscription agreements, but at a higher rate.  Legacy banking customers generate ARPU of around £1.50: This relates to the banks that already have solutions in the market today (e.g. RBS, Lloyds, HSBC, CIC, Fifth Third Bank). These agreements were signed with an upfront licence fee and given a number of these users only take parts of the platform (e.g. messaging), we believe the average subscription fee is lower at £1.50.  Customers from Visa Europe/Telefonica likely to generate ARPU of £1.10: Given Monitise's agreements with Visa Europe and Telefonica are only for a sub-set of features, we believe the ARPU is likely closer to £1.10.  New customers from subscription agreements could generate ARPU of more than £3.00: With the move to the new business model, Monitise quotes that its new model has subscription fees of £3-5, and we believe (to be prudent) that this will essentially be £3.00.
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