INTERVIEW: Filippo Giachi, MD for Asia Pacific at Docomo Digital (pictured), the mobile payment arm of Japan’s largest operator, explained local knowledge will be key to successfully expanding the service into new markets.

While the business is experimenting with novel approaches, Giachi told Mobile World Live one of its core propositions is to localise its offering by bringing in the most relevant payment methods for merchants.

“We are aware that every region and country is very different, so you really have to have an understand[ing] of the local market when it comes to mobile commerce”.

Given Japan’s head start in mobile commerce nearly 20 years ago, Giachi said it is building on its parent company’s experience as it looks to export, with a focus on the youth and emerging markets.

The company also is innovating by developing different business models and banking on partners being willing to pay a licensing fee for software-as-a-service which helps them manage their payment business and maximise performance.

A licensing approach is a major shift from the typical approach of  payment providers charging a transaction fee regardless of the performance of the merchant or ecosystem partners, he noted.

“We try and play [a] role by taking a share of the risks and opportunities with our partners.”

He noted content has traditionally been a major driver of m-payments and he expects that to continue for some time, with gaming accounting for more than 50 per cent of revenue.

Docomo Digital is seeing triple-digit growth in sectors including services and the sale of non-digital goods, which are generally purchased with e-wallets rather than via carrier billing.

Watch the full interview here.