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Q&A: Bango and Danal partnership

Danal_Bango MOU Ceremony InvestorOn 12 August, Bango announced that it had signed a memorandum of understanding with Korean mobile commerce company Danal, aimed at strengthening its global payments footprint and for mutual technical and business benefit. 

To provide extra information on this announcement, below are answers to the key questions asked by investors in response to this announcement.

Q: What impact will this have on End User Spend (EUS)?
A: The reason for the partnership is to significantly grow EUS across the Bango Payment Platform and to improve EUS for Bango store partners. At this early stage Bango is not sharing any specific EUS expectations.

Q: When can we expect to see any impact on EUS from this partnership?
A: Additional EUS generated directly from this partnership is likely to appear in 2017.

Q: How big is Danal’s payment business?
A:  Danal provides full investor information on its website – https://www.danal.co.kr. In 2015 its Direct Carrier Billing (DCB) business EUS was reported to be well in excess of $1Bn – excluding the USA based BilltoMobile business which Bango now operates.

Q: What are the key benefits of such a partnership?
A:  Danal payment methods integrated into the Bango Payment Platform will enable Bango’s global partners to increase their payment reach and make more sales.   Danal merchant partners will gain access to the payment providers integrated into the Bango Payment Platform.

Q: Which Danal merchants will Bango integrate/activate?
A: Danal has a wide range of merchants using its payment platform, see Danal’s major customer list here. Any of these will be technically able to use the Bango Payment Platform. The DCB routes that they can activate will be dependent on their commercial agreement with each mobile operator – as with an app store. The payment routes integrated with Danal will be made available to Bango customers and displayed in Bango Grid as they become available, just like Mobile Network Operator (MNO) payment routes. Bango store partners will see the commercial terms for activation when they use Bango Grid and can then request activation.

Q: What is the DCB opportunity for Bango in China given that Google Play is not active there?
A: Bango does not currently plan to establish a direct presence in China.  Bango will be supporting Danal in activating Chinese merchants through the Bango Payment Platform, and Bango will be supporting its major global customers with their plans to enter China, including their use of Danal billing routes. Danal has an extensive payment infrastructure in China, for example in support of its products which enable Chinese citizens to spend money outside China.

Q: The release says, “Danal payment methods will be integrated into the Bango Payment Platform” – what payment methods are included?
A: Potentially any payment route will be supported, but the initial focus will be on mass market payment options that are attractive to Bango customers.

Q: What is the commercial model for this partnership?
A: Danal and Bango typically charge a small fee for collecting payments through their respective platforms. Both companies therefore benefit by generating additional spending through their platforms through this collaboration.

Q: Are there any unusual opportunities available through the Danal partnership?
A: Danal has significant involvement in physical goods sales through DCB, and in biometric authentication – both of these areas are of interest to Bango and Bango customers. Danal also has an innovative sharing platform called SSOCIO, which will require ubiquitous payment capabilities as it rolls out worldwide.

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