The trend has been obvious for several years now: More and more people are using smartphones and the numbers are still growing every day. According to comparis.ch, 3.6 million people in Switzerland—nearly half of the population—owned one of those nifty little devices in 2013. This figure increases dramatically to 83% of those under 30 years of age. Similar figures appear in statistics examining smartphone usage in Europe, with 49% of Europeans owning a smartphone.
In general, smartphone users choose to download and install apps, rather than visit mobile websites. In Switzerland, the average smartphone user has 34 apps installed and uses 13 of those apps at least once a month. What does that mean for a company selling digital goods? And how can they get in on this huge evolving market?
Surveys show that an overwhelming 96% of smartphone users have searched for a product or service on their phone. But when it comes to actually buying the product through their smartphones, many people are still hesitant, which is why 41% of those searches on smartphones end up being purchased online via computer afterwards. While this number is expected to decline, companies trying to enter the market must overcome certain barriers, in particular concerns regarding security and convenience. Brands must gain consumers’ trust, improve the user experience, and make it easy and more convenient to buy goods via smartphone. An interesting and successful approach is made from a unexpected angel of the market by PostFinance in the field of digital goods like music, e-books, etc.
The PostFinance app is a good example for making it easy to buy and sell digital goods. Besides managing customers’ banking needs, the app allows users to buy credit for iTunes, the Paysafecard, and gaming consoles such as xBox, Nintendo, and Playstation as they report on their website. More than 500,000 people have downloaded and installed their app. The service has been such a great success that they are constantly expanding their product range even outside classic banking. The main benefits for users are that they don’t have to provide a credit card and that due to multi-level encryption and identification processes the app is also very safe to use. The app is available for both IOS (Apple) and Android (Google), thus making the PostFinance service available for nearly all smartphone users.
How exactly does it work? Once installed, users buy credit through the app – which comes straight out of their PostFinance bank account – and receive a code.
When they are ready to buy digital goods, let’s say an e-book, they simply enter that code at the online checkout and download the book.
Charly Suter, Marketmanager, at PostFinance, accredits the success of the app to its convenience for the user. “We are excited to be one of the first financial institutions to offer this kind of service to our customers”, states Suter recently on his Linkedin profil. “We started with offering credit for iTunes a year ago and have expanded our range of digital goods since.” It seems that the feedback from their customers is very positive, then in the last 12 months all major gaming platforms are on this very exciting App. Definitely a innovative approach by this creative financial institution.
Click here for more information on the PostFinance App: