Consumers don’t mind Obopay’s fee increase

Customers of Obopay expressed no complaints concerning more than doubling in the transaction price which was lifted from 10 cents per transaction to 25 cents effective starting from August 7. Before raising its fee the mobile payments company conducted a study that shows that there is an opportunity to improve profitability for itself as well as for banks with which it is either seeking to form partnerships or already has, such as Citigroup Inc.

According to Gregory Holmes, president of Obopay U.S., the absence of user complaints, he says, “speaks to the good economics involved. We did the research and discovered the increase is well within consumer expectations.”

While Obopay develops more lucrative markets overseas Holmes denies Obopay’s new pricing reflects a strategic shift away from the U.S. “We’re very interested in developing the domestic market,” he says. “Our efforts with Citi and the MasterCard [Worldwide] program speak to our commitment to this market.”