Vodafone partners with Visa for Mobile Payment service (UK)
Vodafone and Visa have announced a worldwide partnership to enable consumers to pay for goods and services using their mobile phones instead of coins and banknotes.
According to a report by the company, the companies will work together to develop a Vodafone-branded proposition that will be offered to consumers across Vodafone’s 398 million customer base in more than 30 countries across five continents, enabled by Visa’s outstanding payment network, product suite and brand. The partnership, the largest of its kind between a global payment network and mobile operator, combines the companies’ global reach and expertise to bring Visa payment functionality to consumers around the world.
The new Vodafone mobile payment proposition announced with Visa will be based on the Visa prepaid account and offered to consumers in partnership with Visa Issuers. The service will initially be launched in Germany, the Netherlands, Spain, Turkey, and the UK, starting in the coming financial year. Other countries within Vodafone’s global portfolio will follow.
In addition to the Vodafone-branded stored value account inside the mobile wallet, Vodafone and Visa will work together to enable Visa Issuers for mobile payments globally. The platform will be open to all partners of all relevant industries, including financial institutions, retailers, transport and utility companies to host their services within an innovative new Vodafone mobile wallet.
Vittorio Colao, Group Chief Executive Officer of Vodafone, said that the Vodafone mobile wallet represents the next stage of the smartphone revolution. It offers customers the speed, simplicity and convenience of managing their everyday transactions with a single wave or tap of their smartphone, using innovative and reliable services developed by Vodafone and Visa – technology and providers they can trust. Further, the mobile wallet will be open to any service provider and they are committed to enable all partners to provide their joint customers the richest service portfolio possible.
In developed countries across Europe, North America and Australia, with a mature infrastructure for electronic payments, users of the Vodafone stored value account will be able to make purchases at the-point-of sale using Near Field Communications (NFC) enabled smartphones equipped with Visa payWave for mobile, Visa’s fast and secure mobile payment technology. By simply waving their smartphone in front of a payment terminal, consumers will be able to make simple, every day purchases such as bus and train tickets, newspapers, magazines or a morning coffee. Consumers will also be able to make high value purchases securely using a passcode.
Peter Ayliffe, CEO, Visa Europe, said that their partnershipwith Vodafone represents a huge stride forward for mobile payments. Visa’s future of payments initiative is more than just a promise, these services are real, tangible and coming to the mainstream consumer market in the very near future. Any Visa Issuer across these key markets will be able to work with Visa and Vodafoneto enable mobile payments for their customers, backed by all the security, trust and global acceptance the Visa brand represents.
John Partridge, President, Visa Inc ., claims that the convergence of global payment networks, such as VisaNet, with leading mobile telecommunication networks, such as Vodafone, has the potential to transform the way people pay and get paid the world over. Visa’s relationship with Vodafone will assist financial institutions in both developed and developing countries to offer Visa-quality payments to new and existing account holders.
Mobile payments to see major growth in coming years
With the increasing demand for mobile payment services, mobile operators along with big companies such as Google, Visa and PayPal are reportedly working towards establishing themselves in this market. According to reports, mobile operators in the US, AT&T, Verizon Wireless and T-Mobile are spending large amounts of money in an attempt to strengthen their foothold in the mobile money market.
Further, sources claim that while Google launched its mobile wallet service in the US this year, enabling consumers to use a NFC (Near Field Communications) enabled handset to make payments; Visa and PayPal are expected to offer their services by the next year.
As reported by Wireless Federation earlier, Spanish mobile giant Telefonica announced the trial of its mobile wallet service, in collaboration with BlackBerry maker Research In Motion (RIM). Further, industry analysts believe that in the next five years, mobile payments are going to become the norm and may replace a large part of the traditional payment methods.
EU regulators work towards improving mobile payment services (Europe)
European Union regulators are reportedly working towards improving the mobile payment services within Europe, as large corporates such as Google Inc, Apple Inc and Visa Inc have shown major interest in entering this business segment.
According to industry reports, the market for mobile payment is expected to be worth $ 50 billion globally by 2014, largely supported by the near field communication (NFC) technology. As per sources, the European Commission believes that the region lacks a concrete European framework that would enable customers to make financial transactions using their mobile phones. Further, sources claim that the number of m-payment users in Western Europe were 7.1 million as compared with 62.8 million users in the Asia-Pacific region.
As per reports, Visa and Visa Europe Ltd. had agreed to license mobile payments technology to Google, which could be incorporated into its new range of smartphones.
MTN and Visa offer new m-payment services (Africa)
South African operator MTN has reportedly tied up with Visa in order to provide m-payment services to unbanked users in emerging markets. According to reports, the service, known as Visa Mobile Prepaid, will be initially marketed in Nigeria and Uganda, as part of its existing mobile wallet service.
As per sources, Aletha Ling, COO, Fundamo (Visa) said that the service provides users with a new set of transaction options such as withdraw money from ATMs, transfer money, and pay bills as though they are using a typical card. She added that customers will not be able to use the product if there is no money in their mobile wallet, similar to a debit card, which is why Visa is describing it as ‘prepaid’.
Ling also said that they provide the solution to operators as well as the banks. Operators, in partnership with a bank, will be able to offer this feature as a value-added service under their brand.
Verizon Wireless completes successful 4G LTE Technical Trials Using the Ecrio Client Framework for Next Generation Rich Communications Services
Verizon Wireless today announced the successful completion of technical trials of 4G LTE IP Multimedia Subsystem (IMS) powered voice, video and mobile content sharing services using the Ecrio client framework. Verizon Wireless selected Ecrio’s IMS client application framework in 2009, and the product has since been qualified and embedded in a range of mobile devices in preparation for launch across the Verizon Wireless 4G LTE network.
The trials signal progress toward proving the technology and value of rich communication services (RCS) and media applications that are compelling for customers using Verizon Wireless’ 4G LTE network. Working together, Ecrio with its SIP/IMS service clients, and Verizon Wireless continue to bring RCS applications closer to market.
“This is indeed an exciting milestone in our relationship with Verizon Wireless,” said Tad Bogdan, Ecrio chief executive officer. ”Ecrio is committed to both product innovation and continuing to work closely with Verizon Wireless and its device suppliers to integrate the client functionality needed for deploying successful end-to-end services. LTE has become the technology of choice for 4G deployments and Verizon Wireless is leading the way with the first broadly deployed LTE network. Ecrio is delighted to be working with Verizon Wireless to extend the bounds of mobile communications.”
About Verizon Wireless
Verizon Wireless operates the nation’s fastest and most advanced 4G network and largest and most reliable 3G network, and serves more than 94 million customers. Headquartered in Basking Ridge, N.J., with 82,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications and Vodafone (LSE, Nasdaq: VOD). For more information, visit www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
About Ecrio
Ecrio is the leading supplier of SIP and IP Multimedia Subsystem (IMS) based communication client software solutions for the mobile industry. The Company’s FastTrackâ„¢ family of communications solutions includes device software products and solutions for IP communications and rich media. Ecrio was founded in 1998 and is headquartered in Cupertino, California USA with R&D and support centers in Cupertino, Japan, Korea, and India. The company is privately held with external funding provided by leading investment firms and leading companies including NTT DOCOMO and Visa, Inc. For more information visit: www.ecrio.com.
VeriFone accuses Square for security flaws in mobile credit card apps
VeriFone, which amongst many services provides security for credit card transactions has claimed that there is a serious security flaw at start-up mobile credit card transaction processor, Square.
The start-up offers a credit card swipe device that plugs into smartphones. Then, an application in the handset manages the transaction which is confirmed over the cellular network.
VeriFone is claiming that it is possible to develop a rogue application that would allow someone to swipe cards through the reader and store the information from the credit card swipe. The company claims that Square’s hardware is poorly constructed and lacks all ability to encrypt consumers’ data, creating a window for criminals to turn the device into a skimming machine in a matter of minutes.
The exploit requires the customer’s credit card and that would only be handed over in the expectation of a transaction. The exploit is in practical terms, no more serious than handing over a credit card in a restaurant or shop for a transaction to be processed. There will always be an opportunity for someone to record the card details and misuse them.
According to VeriFone, it is contacting Visa, MasterCard, Discover, American Express, and JP Morgan Chase (Square’s credit card processor) to warn them of the problem, and presumably hope that a commercial rival is put out of business.
DoCoMo and KT Corp sign cross-border NFC deal (Japan, South Korea)
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.
TSYS partner with Cassis for mobile NFC payments (US, Singapore)
US payment processor, TSYS has inked a partnership deal with Cassis International, a Singapore-based Company to provide secure mobile payment, loyalty and commerce functionality.
Cassis is a mobile trusted service manager for banks, retailers, transit operators and mobile service providers and is globally certified by Visa and MasterCard.
Visa teams up with Wireless Dynamics to develop iPhone-Based Payment System (Europe)
Visa Europe has teamed with Canadian company Wireless Dynamics to develop an iPhone-based contactless payment system for consumers across Europe.
According to Visa, it has sponsored consumer research in Italy, Poland, Turkey and the United Kingdom that supports demand for mobile contactless payments, with 41% of those polled stating that they definitely or probably would use a payment system from the credit-card provider. iPhone users seem even keener, with 57% responding similarly.
Visa will control an iPhone accessory called the iCarte. The accessory can be attached to the devices to make payments when used together with a Visa Mobile application for iCarte App available in Apple’s iPhone App Store.
The iCarte accessory uses Near Field Communication (NFC) technology and embedded security that stores a person’s Visa card. Once coupled with the iCarte mobile application, people can make payments by touching the iPhone on any compatible point-of-sale terminal across Europe. Users don’t need to enter a PIN to use the service.
iCarte is compatible with iPhone 4, iPhone 3G S and iPhone 3G on iOS 3.1 or higher, and people can use multiple Visa accounts with it.
The first deployment of the service is in Turkey in collaboration with Yapi Kredi bank and Turkey’s largest mobile operator, Turkcell.
Mobile payments are being touted as the next wave in how people make purchases, and there are a variety of ways providers are using to payment-enable devices.
Visa’s approach is similar to an SIM-enabled one, which also uses NFC and stores information on a device’s SIM card for use with POS machines. People also can use their phones to send a payment request via text message and have the money taken out of their phone bill or an online payment system.
While the idea and technology for a mobile payment service has been around for about 10 years, 2011 is the year it’s expected to catch on in a big way, especially across Europe and Asia.
FIS launches prepaid electronic financial account service (USA)
FIS, US-based banking and payments technology provider has launched a prepaid electronic financial account service, in a bid to offer financial services to a range of consumer segments.
With the new electronic financial account application customers will be able to make electronic deposits and payments as an alternative to traditional demand deposit account (DDA) or general-purpose reloadable (GPR) prepaid card.
In addition, users can access the prepaid electronic financial account service via a range of channels, including online, mobile, point-of-sale (POS), ATM, interactive voice response (IVR) as well as through a call center. Account holders can conduct payments using various payment networks such as Visa, MasterCard and the NYCE payments network. Moreover, with the new application, users can also initiate payments to billers and electronically transfer funds between accounts.
