Industry News

OFT’s principles for in-app purchasing published

Posted on by Andrea Putnam-Moorcroft

The OFT has published its finalised Principles for online and app-based games.

In April 2013, the OFT announced the launch of an investigation into the ways in which online and app-based games encourage children to make purchases. The OFT investigated whether there was general market compliance with consumer protection law, in particular the Consumer Protection (from Unfair Trading) Regulations 2008 (‘CPRs’), the Unfair Terms in Consumer Contracts Regulations 1999 (‘the UTCCRs’) and the Electronic Commerce (EC Directive) Regulations 2002 (‘the ECRs’). The OFT explored whether online and app-based games included commercial practices that may be considered misleading, aggressive or otherwise unfair under that legislation.

The OFT considered that a set of Principles would be the most helpful and proportionate approach to address the concerns the OFT identified during their consultation because they clarify their view of the entire industry’s obligations under consumer protection law. The concerns OFT has articulated are:

– a lack of transparent, accurate and clear up-front information relating, for example, to costs, and other information material to a consumer’s decision about whether to play, download or sign up to a game
– misleading commercial practices, including failing to differentiate clearly between commercial messages and gameplay
– exploiting children’s inexperience, vulnerability and credulity, including by aggressive commercial practices
– including direct exhortations to children to buy advertised products or persuade their parents or other adults to buy advertised products for them
– payments taken from account holders without their knowledge, express authorisation or informed consent.

The Competition and Markets Authority will, once it acquires its powers in April 2014, pick up from where the OFT has left off in respect of children’s online games.

Payforit releases the latest update to its scheme rules to include the In-App billing checkout flow

Posted on by Andrea Putnam-Moorcroft

Payforit – the mobile micropayment scheme backed by all four UK mobile network operators – is to launch an update of its scheme rules on 21st November 2013 to reflect new and emerging ways to use Payforit to make mobile payments, including in-app billing. The Payforit scheme has periodically been developed and revised since it was first launched to ensure that it keeps pace with changes in the Charge to Mobile payments arena, while continuing to provide a consistent and transparent standard that allows consumers to buy with confidence. The Payforit scheme provides a standardised set of payment/check-out screens that deliver clear pricing, after sales contact points, Terms & Conditions and an SMS receipt to ensure every consumer knows what, when and from whom they purchased digital products and services.

The latest version of the Scheme Rules – Payforit 4.1 – reflects all of the new flows that have been accepted by the cross-network Payforit Management Group, and in particular the In-App billing flow has been introduced following the development of Games and Apps that enable a consumer to purchase further services/content while using their App. The In-App payment flow has undergone significant trials and testing with the cross-network Approved Payment Intermediary Syniverse. Global Charge has been accepted as the first ( of several ) secure mobile payment libraries that can be incorporated into Apps to deliver this style of Payforit flow. Other significant revisions in this version include:

• Enhanced Single Click; a payment flow to allow consumers to buy multiple items, typically music tracks or videos and to receive a single SMS receipt to list all purchases covering a short period
• Taking on industry feedback to improve some payment screens.

The In-App payment capability, Enhanced Single Click, Document authoring and updating and other improvements were co-ordinated by the Payforit Working Group run by the micropayment trade association, AIME ( www.aimm.co ). The AIME Working Group brings together mobile network operators, their Payment Intermediaries, the premium rate regulator and online mobile merchants to discuss and agree how the Payforit scheme can be continuously evolved to provide services for mobile consumers in line with advancements in mobile technologies.

A Member of the Payforit Management Group said, “We’re delighted to be able to launch the revised Scheme Rules today and they will play an important role in ensuring that consumers are able to charge digital goods and services to their mobile account simply and easily, and this will help promote Payforit to merchants as an exciting and effective payment solution.”

Payforit In-App Billing Set to Launch at AIME’s Summit

Posted on by Andrea Putnam-Moorcroft

AIME today announced that details of the new In-App billing function will be broadcast to all merchants attending this summer’s Payforit Summit. Whilst trials of the new billing mechanism on Android devices are still underway, the In-App billing capabilities are set to revolutionise the way customers purchase upgrades and add-ons whilst re-defining digital revenue streams for operators.

The Payforit Summit ( www.payforitsummit.com ), which takes place on June 26th at 10-11 Carlton House Terrace in Central London, will see the results of current In-App billing trials revealed. During the Summit announcement current and prospective Payforit merchants will learn more about the availability of the new function and how it will be rolled out across the mobile entertainment marketplace to capitalise on a new consumer audience.

Businesses, developers and app publishers will now be able to profit from app development and usage long after the initial download and sell their goods and services to consumers through the ease of micro payments.

Consumers will also benefit from the friction-free and secure checkout mobile payment system already offered by Payforit, with app users being able to purchase upgrades such as new lives and power ups without prolonged interruption to game play or app usage. The payment for upgrades will be deducted from their mobile phone’s prepaid balance or added to their monthly bill to ensure a smooth and seamless transaction without leaving the app and without the hassle and additional time spent inputting their credit or debit card details.

“In-app billing is the next stage in the continued development of Payforit,” said Toby Padgham, Director of AIME. “As an industry we are striving to make mobile payments through Payforit the best possible and smoothest payment mechanism for consumers, which will in turn increase the revenues of those merchants using Payforit and increase consumer choice. In-app billing is the next step for us.”

Following recent headlines regarding unauthorised in-app purchases on mobile devices, In-App billing using Payforit will enable operators and consumers to avoid premium pitfalls with a service that was designed with consumer protection at the fore. Payforit can apply a daily billing limit of £30, while for all apps defined as targeted at children, Payforit can help the developer or publisher avoid unwanted headlines by creating a children’s limit of £3 per month. To offer further security benefits Payforit’s In-App billing uses third party Accredited Payment Intermediaries ( APIs ) to take payment and provide a smooth and simple transaction between merchant and consumer.

Details regarding the launch of the In-App system and how the direct operator billing will affect mCommerce strategy for operators, developers and app publishers will be announced at AIME’s Payforit Summit. The event will take place on June 26th at 10-11 Carlton House Terrace in Central London.