Mobile sense case study

The company was founded in 2002 by a former executive at Orange who saw the need for a mobile payment system. At that time the relevant technology didn’t exist, but he knew exactly what he wanted to develop, and decided to do it himself.

“Our technology has the potential to revolutionise how people use their money in 101 different ways,” says Kerl Haslam, CEO and founder of Mobile Sense. “Right now, there is nothing else on the market like this. For example, imagine your daughter is travelling alone hundreds of miles away. She needs money and you are not near a bank. But you do have your mobile phone, and with a Mobile Sense ‘mobile wallet’ you can send her money by sending a text message.”

Intense preparation

Haslam has spent the past six years developing and testing the product, and Mobile Sense now employs nine people.

The company makes money by charging a small commission fee to the providers of goods and services, similar to how credit card companies charge. It also charges a fixed fee of 75 pence for users to transfer money from a mobile wallet to a bank account.

“Our system is independent of mobile networks, banks, handsets and location,” says Haslam. “We’ve developed a really simple, user-friendly system. To get started you register your bank details with us. We validate the details and you can then deposit money in a ‘mobile wallet’. From then on, you can use the money in your wallet with any merchant that accepts this form of payment.”

Home and away

The company is now entering the consumer market in the UK, and considers university students to be its target market. Two Pizza GoGo shops in university towns currently accept payment via Mobile Sense, and four more PizzaGoGo shops, nine Tops Pizza shops and two taxi companies plan to accept it in the near future. But, in addition to pushing into the UK market, Mobile Sense has an ambitious aim to be a global company with at least one branch on each continent in the next three years.

In the autumn of 2007, Haslam met a UK Trade & Investment trade advisor through his involvement with UK Trade & Investment’s ICT team. Shortly after, UK Trade & Investment invited Mobile Sense to join its stand at the 2008 Mobile World Congress in Barcelona, the industry’s premier trade show featuring mobile companies, content providers and equipment makers.

“Our technology has the potential to revolutionise how people use their money in 101 different ways”

Along with five other companies handpicked by UK Trade & Investment as examples of leading UK innovation, Mobile Sense showed off its technology to the top communications companies.

“At the Mobile World Congress we met many contacts who were interested in franchising opportunities,” says Haslam. “That alone saved us months of work. Having UK Trade & Investment behind us gives us credibility. We find that companies take us more seriously and contract discussions move much faster because of their support.”

Passport to Export

After the Mobile World Congress, Mobile Sense joined UK Trade & Investment’s Passport to Export programme, which offers UK exporters mentoring, financial support and training. As part of the scheme, Haslam attended a two day seminar in May 2008 to learn how to expand the company’s global reach.

The company is currently working towards opening branches or franchises in Russia, Brazil, Poland, Australia and Israel, and has dedicated a salesperson to establishing contacts overseas.

“These are all large countries where we think our product would change the way people handle their money,” says Haslam. “Brazil, for example, has a huge remittance market. Lots of people there have family working in the US, and our technology will make it easier for them to receive money from family members. In Russia everyone has a mobile phone but cash machines are not common.”

Avoiding mistakes

Haslam advises any young company looking to expand to get in touch with UK Trade & Investment.

“When you are starting a company, it doesn’t matter how much experience you have, it’s something completely new,” says Haslam. “You need all the help you can get. UK Trade & Investment’s advice has helped us avoid making many mistakes that new companies are prone to making.”

“UK Trade & Investment’s advice has helped us avoid making many mistakes that new companies are prone to making”

World record

This autumn, Mobile Sense will attempt to set a record for the fastest global money transfer.

In less than eight minutes, Mobile Sense will transfer money between landmarks in six countries in six different currencies. The money will be sent between London’s Houses of Parliament, New York’s Empire State Building, India’s Taj Mahal, Egypt’s pyramids, the Sydney Harbour Bridge, the statue of Jesus in Rio de Janeiro and back again to London.

“Right now if you tried to do this with your bank, or with a money wiring agency you could be waiting hours or even days to get your money,” says Nikki Burns, Chief Operating Officer of Mobile Sense. “This experiment will demonstrate the immediacy and spontaneity of our product. Consumers want to be able to move money around and buy things without being at the mercy of retail outlets. And now they can.”