Mobile payments expected to reach $30.5 billion by 2021 (UK)

On 10.18.11, In Mobile, By Editor

Industry sources claim that owing to rapid technology upgradation and the increase in the number of smartphone users, British consumers are likely to spend as much as $30.5 billion by 2021 on purchases through their mobile handsets. As per reports, the mobile purchases currently account for $1.8 billion, with almost $417 million comprising of mobile sales from the food and groceries category.

Sources claim that mobile commerce is expected to grow by 55 percent over the next five years. Innovations such as Near Field Communications (NFC) and faster mobile data transmission play an important role in the success of mobile commerce, by offering users a more secure and convenient way to pay for goods and services.  In order to better provide mobile payment services to their customers, network operators O2, Everything Everywhere and Vodafone joined forces to offer users a single system of paying for goods and services via mobile phones.

 

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Google partners with MasterCard, Citigroup on mobile payments (US)

On 03.29.11, In Mobile, By Editor

Google is reportedly planning to join forces with MasterCard and Citigroup to let users of its Android mobile phones pay for purchases using ‘near-field communications’ (NFC) technology.

The move confirms suggestions made by Google when the NFC-enabled Nexus S handset is launched, and would give the search giant a response to Orange’s UK plans to use Barclaycard’s technology for mobile phone ‘contactless’ payment. Apple is also rumored to be considering using ‘NFC’ chips in its future iPhone products.

According to reports, the planned payment system would allow Google to offer retailers more data about their customers and help them target ads and discount offers to mobile-device users near their stores. Google isn’t expected to get a cut of the transaction fees.

That approach would differ from rumors about how Apple could implement its system, but no clear details have yet emerged of any manufacturer’s plan. Apps, however, could be used to enable holders of credit cards to turn their phones into mobile wallets.

A number of companies, such as discount site Groupon as well as Google, are known to be working on ways of making mobile phones received highly targeted offers or adverts. Google’s Chief Executive Eric Schmidt has repeatedly stated that Google wants to take advantage of how much mobile phones know about their owners. Location data, combined with time and shopping history could be used to tailor ads, for instance. Mr Schmidt has also spoken enthusiastically about the potential for phones to be used to make payments.

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RIM and North American carriers battle over m-payments

On 03.18.11, In Mobile, By Editor

Research In Motion is reportedly battling with wireless carriers in North America over their diverging mobile payments strategies.

RIM and the carriers disagree over exactly where the key data related to mobile payments should reside on the next generation of smartphones, slated to come out later this year, as this will decide who will control the customers, revenue and applications that grow out of mobile payments.

Carriers like Rogers Communications in Canada, and AT&T and T-Mobile USA in the US are opposing RIM and other handset makers’ strategy to make phones that will store mobile payments data, known in industry parlance as ‘credentials,’ in the devices themselves.

According to officials representing some of the carriers, this would bind users to phone makers’ devices and potentially cut carriers out of the loop. The carriers believe they want to encrypt and store the credentials in the phone’s SIM card as these can be easily swapped from phone to phone.

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T-Mobile Czech Republic increases the mobile payment limit

On 03.17.11, In Mobile, By Editor

T-Mobile Czech Republic has increased the limit for mobile payments from US$40.06 to US$68.68.

According to Vit Soupal, Senior Head of Mobile Payments at T-Mobile, more than 1,000 transactions are made via this platform every day, which represents a 100% increase compared to 2010.

The website is visited daily by 5,000 users. T-Mobile has also reduced commissions to make mobile payments more accessible to vendors. M-payment, one of the Pay-by-Mobile payment methods, enables payments for products and services via the web or WAP interface of mobile phones or over the internet.

The service uses a website-based payment gateway. The payment method is suitable for selling tickets for events, insurance, software purchases via e-shops, gaming portals, etc. Payments are deducted from credit on prepaid cards or charged on the monthly invoice.

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Apple’s iPhone5 will not support mobile payments via NFC

On 03.15.11, In Mobile, By Editor

Apple’s forthcoming iPhone 5 will not support mobile payments via Near Field Technology (NFC) despite a recent surge in interest in the service, and its addition to the Android OS.

According to sources, Apple had disclosed in meetings that it would not add NFC to the next generation iPhone. Apple told the operators that it was concerned about the lack of a clear standard across the industry.

However, as per the recent speculations, Apple’s motives, as it is understood, are to  develop its own iTunes based NFC payment platform which would compete with the services being planned by the mobile networks, who are typically working with banks on rolling out the necessary hardware into retailer and travel locations.

 

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Global mobile transaction value to reach $1 Trillion by 2014

On 02.15.11, In Mobile, By Editor

A research report has revealed that while mobile transaction usage is growing, consumers show little willingness to pay for these services. The researcher’s predict unparalleled growth in mobile transactions worldwide, with the total value of global mobile transactions increasing from $162 billion in 2010 to $984 billion in 2014.

However, according to a survey result, less than 10% of respondents would be willing to pay extra for mobile transaction services such as mobile banking, mobile coupons and mobile payments.

Every silver lining comes with a big, dark cloud and the explosion in mobile transactions is much the same. Although mobile transaction service usage is increasing phenomenally, consumers show little interest in paying any additional fees for them. If banks, mobile operators, card networks and retailers want to tap mobile transactions as a revenue stream, they’ll need to come up with more creative schemes than per-transaction fees.

Researchers mobile transaction forecast tracks metrics on mobile banking, international and domestic remittances, contactless cards, mobile coupons and NFC communications. Other forecast findings include:

  • Asia-Pacific overtakes EMEA as the mobile banking powerhouse: In 2010, EMEA leads all regions with 42 percent of worldwide active mobile banking users, followed by Asia-Pacific (38 percent), North America (16 percent) and Latin America (4 percent); by 2014, Asia-Pacific will lead with 54 percent, followed by EMEA (32 percent), North America (10 percent) and Latin America (4 percent)
  • Mobile coupon usage explodes: The number of active mobile coupon users is expected to grow from 2.7 million in 2010 to nearly 35 million in 2014
  • Near field communications (NFC) takes off: The number of NFC-enabled phones will grow from just 834,000 in 2010 to 151 million in 2014, a CAGR of more than 300 percent. Similarly, the value of NFC-based transactions will explode from $27 million in 2010 to $40 billion in 2014.

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DoCoMo and KT Corp sign cross-border NFC deal (Japan, South Korea)

On 02.10.11, In Mobile, By Editor

­NTT DoCoMo and KT Corp have announced a joint agreement to develop cross-border services for mobile payments based on NFC technology, which they will launch in their respective markets of Japan and South Korea from around the end of 2012.

With the joint Business & Technology Cooperation Committee, the two companies are developing NFC common specifications that will be incorporated in devices, networks and billing platforms for seamlessly connected mobile NFC services. Customers travelling between South Korea and Japan will be able to access the services using compatible Android handsets embedded with contactless IC chips.

DoCoMo has tied-up with payment technology company brand Visa, NFC chip and mobile handset manufacturer Samsung Electronics and SIM card vendor Gemalto. In addition, DoCoMo will collaborate with Sumitomo Mitsui Card and bitWallet for cross-border services.

Furthermore, DoCoMo and KT will accelerate development of their existing infrastructures, as well as seek the participation of NFC-based service providers in various industries. DoCoMo has been providing NFC-based Osaifu-Keitai mobile-wallet services in Japan since 2004. KT has been operating a post-paid mass transit service in South Korea since 2002.

DoCoMo is also planning to submit an outline of the common specifications to global industry associations and standardization bodies, such as the GSM Association.

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Mobile finance to take off across Latin America with new joint venture

On 01.28.11, In Mobile, By Editor

Mobile payments could soon be greatly facilitated across Latin America following the announcement of a new joint venture between MasterCard and Telefonica. The two firms have stated their aim to lead the development of mobile financial solutions in 12 countries in Latin America where Telefonica is present with the Movistar brand.”

The two firms have an equal stake in the joint venture, which will leverage banking relationships of both companies, Telefonica’s telecommunications assets and MasterCard’s payments expertise.”

The alliance between the firms will allow customers to use their handsets and devices for various financial services, including money transfers, online shopping, reloading airtime and bill payments. Telefonica has called the agreement a step toward achieving financial inclusion for the underserved in Latin America positively impacting its economic development.”

No timeframe for the launch of any products of services has yet been specified. MasterCard recently appointed a former VP of electronic payments at Orange, Mung-Ki Woo, as a Group Executive for fostering innovation, commercialization and development of go-to-market strategies to support mobile payments around the world.”

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Monitise and ViVOtech partner for NFC mobile payments

On 12.08.10, In Mobile, By Editor

­Mobile banking service provider, Monitise has collaborated with Near Field Communication (NFC) software developer ViVOtech, to deliver mobile phone payments services to banks across the USA.

In addition to contactless payments, service users will be able to transfer money from their registered accounts to other bank accounts, perhaps in response to an overdraft alert or to friends and family. The service will also deliver retail coupons and discounts directly to the user on their mobile phone.

This NFC service will be delivered through the combination of ViVOtech’s over-the-air (OTA) software and Monitise’s Mobile Money technology.

ViVOtech’s software allows data, such as credit, debit or prepaid card credentials, to be remotely loaded onto a secure chip. This can be in an NFC phone, a SIM card or a chip contained within a microSD card that can be inserted into the majority of existing smartphones, including BlackBerry, Android, Nokia and even in various iPhone cases.

According to Lisa Stanton, Monitise executive director of global alliances, Monitise welcomes its partnership with ViVOtech to deliver the next generation of fast, secure contactless payments to their many financial institution clients in the United States. They pride them on being at the forefront of mobile financial management and contactless payments. Combining the power of ViVOtech’s OTA software with their Mobile Money technology platform will ensure that they continue to deliver what the banks and their customers are looking for.

Monitise handles over 100 million mobile inquiries and transactions a year. The company has partnerships with over 240 financial institutions, with millions of people across the globe using its technology to manage their finances on their mobile phone. To date, ViVOtech software has been used successfully in more than 30 NFC phone pilot projects around the globe.

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Nokia Money due to launch soon

On 11.12.09, In Mobile, By Editor
Nokia is attempting to create a multi-bank, multi-operator and multi-device collaboration on mobile banking.
Nokia’s mobile banking and payment service is expected to be commercially available in its first market in Q1 2010, though no location details have been revealed yet.
According to Teppo Paavola, vice president, GM mobile financial services, Nokia cannot reveal any details until a banking partner is confirmed. It is learnt that the service requires a banking license before it can be launched.
Nokia said its target is to have 300 million active users of its services by the end of 2011; the number is expected to be 80 million by the end of 2009.
Paavola said the service will enable un-banked people in emerging markets to transfer money, top up prepaid mobile services, pay bills, carry out online transactions, and pay merchants.
Global mobile payments market is expected to be worth €18 billion by 2014 – €12 billion from emerging markets and €6 billion from developed markets.
Approaches to mobile banking so far have lacked scale and have not worked across operators and across banks.
Nokia therefore plans to drive the collaboration on an open financial ecosystem, with Nokia Money at its core. Paavola added that it has taken a long time to get all the players together, from banks through to mobile operators.
The Nokia Money application will not only be pre-loaded but could be sideloaded, or downloaded later.
Nokia will also be able to provide the physical distribution channel that is critical for the service to work. For example, Nokia handset sellers can be turned into Nokia Money agents, providing the devices, the application, and the ability to handle cash.

Nokia is attempting to create a multi-bank, multi-operator and multi-device collaboration on mobile banking, a service dubbed Nokia Money.

Nokia’s mobile banking and payment service is expected to be commercially available in its first market in Q1 2010, though no location details have been revealed yet.

According to Teppo Paavola, vice president, GM mobile financial services, Nokia cannot reveal any details until a banking partner is confirmed. It is learnt that the service requires a banking license before it can be launched.

Nokia said its target is to have 300 million active users of its services by the end of 2011.

Paavola said the service will enable un-banked people in emerging markets to transfer money, top up prepaid mobile services, pay bills, carry out online transactions, and pay merchants.

Global mobile payments market is expected to be worth €18 billion by 2014 – €12 billion from emerging markets and €6 billion from developed markets.

Approaches to mobile banking so far have lacked scale and have not worked across operators and across banks.  Nokia therefore plans to drive the collaboration on an open financial ecosystem, with Nokia Money at its core.

The Nokia Money application will not only be pre-loaded but could be sideloaded, or downloaded later.

Nokia will also be able to provide the physical distribution channel that is critical for the service to work. For example, Nokia handset sellers can be turned into Nokia Money agents, providing the devices, the application, and the ability to handle cash.

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