eLayaway

eLayaway and the Sports Ticket Arena (no pun intended!)

The Jacksonville Jaguars NFL team announced the acceptance of �eLayaway� for 2010 season ticket puchasess. This is a snapshot of several trends we�re seeing � changing consumer behaviors and the need (desperation?) of some �merchants� (using an NFL team loosely as a merchant in this case) to think outside the box with alternative payments acceptance.

Certainly this is an out of the ordinary case (though the Jags are mentioned as the third NFL team � joining the Vikings and the Saints � to offer season tickets in this manner), but it got me thinking�

eLayaway has been around for awhile and is cobbling together a solid base of merchants for its �eLayaway Mall.� This is similar to the growth we�ve seen for such alternative payments players as BillMeLater and eBillme. Javelin consumer research indicates that the �network effect� is a strong draw for growth in an alternative payment mechanism. If consumers know that they can use the method of payment at an abundance of merchants, it leads to immediate organic growth.

Such is the case when we go to eLayaway and see an �iPOD TOUCH AS LOW AS $42.23 A MONTH!!!� [THE EXCLAMATION POINTS ARE MINE BUT THE CAPS ARE THEIRS!!!], and similar offers from such well-known merchants as Buy.com, Wine Enthusiast, HP, etc.

Combine that with the perception of thrift and affordability that consumers tend to get with a layaway plan � rather than putting it on a credit card, I�m paying for it over time, using available funds, etc. etc. � and it coincides with that other consumer trend�the economy still hitting consumers hard and creating the need for creative financing of larger purchases.

Oh but don�t expect to be at the stadium this fall. As with all layaway plans, the goods are delivered when �paid in full� status is achieved. See you in Jacksonville (or Minnesota, or N�awlins) in September, 2010. One thing elayaway does not provide is instant gratification. Not necessarily a bad thing�