Mobile communications has been growing steadily over the last few years. To help users keeping control over their expenses, or making sure they can cap the mobile communication expenses of their children, a huge variety of mobile top-up options has been generated (scratch cards, ticket generated on POS terminals, etc.).

Consumers want to be able to purchase airtime anytime, anywhere and for any amount.

Reloading using physical forms such as scratch cards does not fit the bill. Scratch cards have fixed face value, and in order to purchase airtime for another user, one has to send the scratch card to that person. Reloading on a payment terminal is far better suited to consumer demand.

The user can purchase:

• any amount of airtime
• airtime from any point of sale
• airtime and reload any other subscriber’s account

With a POS terminal, a merchant is able to supply to any demand and reduces the risk of missing sales.

With physical top-up methods, merchants are obliged to keep a large inventory of scratch cards with different face values for different mobile network operators. Therefore, they have to invest a significant amount of money to be able to propose a wide selection of scratch cards and to provide a lot of space for displaying top-ups cards.

• When performing mobile top-ups on a payment terminal, a merchant:
• will always be able to supply the consumer with the demanded top-up option for any mobile network operator, amount, and with options, such as SMS or data plans.
• will only pay for the airtime recharge when he sells it to the end-user.
• saves valuable space for other merchandise display
• benefits from a better high tech image and a possibility to be connected on a real time basis to a mobile operator’s network. It can be seen as a means to reassure end users and, more generally, to increase sales.

MNO selling top-ups on a payment terminal benefit of more positive high tech image and greater flexibility.

For a mobile network operator (MNO), printing scratch cards represents significant costs. As scratch cards carry monetary value, they need to be manufactured, packaged, transported and stored using safe conditions and secure means. With different face values and options relative to specific markets (as teens or migrant workers), inventories represent high costs. Distribution circuits between MNO and merchants are complex to set up and also mean costs and risks.

Furthermore, selling mobile top-ups using a POS terminal brings to the mobile network operator a more positive high tech image and greater flexibility.

Mobile network operators are generally concerned by missed sales due to the lack of a given scratch card at point of sales, leading to the subscriber churning to another mobile network operator.

Thanks to better availability of mobile top-up values and options, selling top-ups on a POS terminal increases consumer loyalty and reduces churn.