Cash Boost for Social Networks
26/3/2007
At stake is a share of the £20 billion worth of income that it’s estimated the UK’s 6.7m 11-17 year olds have at their disposal.
It’s evidently much more convenient and secure for non-card carrying tweens and teens to use cash online, and now with Ukash they can. A number of Social Networks such as Habbo Hotel, Stardoll, Faketown and IMVU have already signed up for the European service.
“The full potential for increasing cash spending levels and bringing in more paying members will only continue if tweens and teens can fully participate without needing a payment card”, comments Justin Lunny, Ukash Director of Sales & Business Development. “The feedback we’ve received is that transaction levels grow significantly, both in volume and value, whenever Ukash is offered as a payment option”.
Alistair Williams from Habbo confirms this, saying that ”in the seven months since we have offered the Ukash cash system to fund purchases and activities on the site we have seen more and more teens switch over to use it. We have users on Habbo Hotel from 11 years up to 18 years old, but the majority are around 14 to 15 years old so they don’t have access to credit cards to use online so a cash based system is ideal for them”.
This view is backed up by the Michelle Ogata, CEO of Faketown: “Due to the age bracket of our core audience, a large percentage of Faketown users do not have a credit card or PayPal account, which limits their ability to purchase Fake Coins, the site's virtual currency. Providing users with a "cash payment" option via Ukash expands Faketown's paying userbase, which has a direct impact on level of activity and engagement with the site, as well as encouraging new and existing users to play more frequently.”
Buying and using Ukash is incredibly simple. In the UK and Europe, Ukash is working with partners to provide accessible purchase points for consumers to buy Ukash vouchers. There are currently 120,000 payment/purchase terminals operating in the UK, Germany, Ireland and Spain, in newsagents, grocery stores, petrol forecourts and other convenient locations. Unlike other pre-paid initiatives Ukash requires no pre-registration and is free to the consumer at the point of purchase, ensuring cash consumers are not discriminated against.
Customers exchange cash for Ukash at POS, and then spend the value online at merchants displaying the Ukash payment brand. Ukash contains a secure and unique 19 digit code - to spend Ukash the consumer simply enters their 19 digit code and value when asked for payment details during the check-out process. The Ukash payment is authorised in real-time, assuring payment to the social network operator and allowing the consumer to participate instantly.
For Social Network operators Ukash is more than just a payment method though, as Justin Lunny adds, “we actively work with our merchants on campaigns and promotions to endorse Ukash as the preferred payment solution for cash consumers. This marketing partnership approach has helped our merchants to generate rapid return on their investment and to achieve the desired conversion of players to payers”.
Mattias Miksche, CEO of Stardoll is in agreement: “Ukash enables our users to buy our on-site currency, Stardollars, with cash: this helps even more members enjoy playing at all levels on Stardoll. We are excited about working with Ukash to deliver better service, more value and to make it easier for our members to fully enjoy the Stardoll experience".
©2008 Smart Voucher Ltd
Smart Voucher Ltd. (of which Ukash is a trading name) is authorised and regulated by the Financial Services Authority in the United Kingdom as an electronic money institution. Smart Voucher Ltd (trading as Ukash) FSA Register Number: 447811.