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Market analysis and overview
mobile payment initiatives inside
‘Mobile payments 2010’ illustrates the complexity and diversity of the mobile payments market. In particular it highlights the different approaches between developed nations focusing on solutions utilising existing banking infrastructures and developing nations currently implementing more proprietary MNO driven solutions. Some of the key challenges for market development are very well explained, the report is therefore good reading for anyone wanting to obtain a high-level picture of the market status. Liisa Kanniainen, Executive Director of Mobey Forum.
Mobile payments 2010
Market analysis and overview
Publisher: Editors: Authors:
Innopay Chiel Liezenberg (Innopay) and Ed Achterberg (Telecompaper) Remco Boer, Tonnis de Boer (Innopay)
Edition Version 1.0 1 November 2009 ISBN/EAN 978-94-90587-01-7 Copyright © Innopay BV and Telecompaper BV All rights reserved
You are reading the report ‘Mobile payments 2010 – Market analysis and overview’. This report is written and published by Innopay in cooperation with Telecompaper and is endorsed by the Executive Director of Mobey Forum.
We are witnessing the second wave of interest in mobile payments. Like the first, this second wave is characterised by the launch of a large number of pilots, utilising a variety of channels and technologies. With high perceived demand and accessible technology for realisation, the growth in the number of pilots around the globe is now accelerating, with a notable increased focus on (local) money transfer and remittances. Despite the flurry, sustainable commercial success is rarely achieved. In developed countries with well developed and redundant transaction infrastructures the effect of failure will be negligible. Better luck next time. But, in developing countries where alternative transaction infrastructure is lacking, failure of mobile payment initiatives could result in serious long term value dilution of the mobile channel. If the mobile payment channel is tainted by lack of trust or reliability as a result of cutting corners in pilots, there is no alternative channel for financial services delivery to fall back on, relegating these economies back to square one. Service providers and regulators in all countries involved should take notice of this and ensure that every measure is taken to get mobile payments – in pilot or production- ‘first time right’.
The aim of this report is to contribute to the further understanding and structuring of mobile payments, allowing decision-makers to better find their way in this complex matter. It is intended for the entire mobile payments industry, including merchants, financial institutions, mobile network operators, handset manufacturers, scheme organisations and policy makers. The report consists of two parts. Part 1 elaborates on the trends, developments and issues in the field of mobile payments. Part 2 provides an overview of more than 150 mobile payment initiatives from around the world. All details concerning mobile payment methods and specific mobile payment products are based on information that was publicly available when this report was written during the summer of 2009. Although this report does not claim to provide a complete description of the market, it is felt that it presents an overview of the main and relevant developments.
Finally, this report has been written with the utmost care. If you feel that, despite our efforts, it contains information that is unclear, erroneous and/or missing, we appreciate it if you could let us know. Please mail us at email@example.com.
Innopay on Mobile payment
Innopay is an independent full service consultancy firm specialised in payments and related transaction services. It is our vision that: — — — Globalisation increasingly leads to a network economy. Electronic infrastructures enable industries to cooperate in networks, in real-time. Internet and mobile are developing into true transaction channels, creating new transaction contexts. New contexts require new transaction services and new options emerge in existing contexts. Transaction services are part of two-sided markets, with sophisticated network effects. Development of successful transaction services requires thorough understanding of the context. Development is complex and costly and asks for specialist expertise and a specific approach.
Innopay has been active in mobile payment since 1999. Several of our senior consultants have experienced the rise and fall of the first wave of mobile payment initiatives and the current upcoming second wave first hand. We have come to recognise that mobile payments are greatly dependent on the economic, regulatory and cultural context. The European marketplace is very different from that in developing countries. Where in the EU there is a strong focus on NFC technology and key issues include the business case, interoperability and positioning, in developing countries the focus is on remittance and money transfer solutions and associated regulation, funding and risks. Based on our experience we have created the ‘Innopay Transaction Context Model’ (parts of which are described in chapter 3) to better understand the success factors for mobile payment services development. Our services address three domains: — Help you as a professional or regulator to ‘structure & understand’ the mobile payment services industry. — Help you as a provider to ‘develop & manage’ mobile payment business, services and products. Help you as a corporation to ‘choose & use’ mobile payment solutions.
Mobile payments 2010 - 6
Some of our references cases include: — Market analysis on introducing mobile payments in a developing nation for a leading bank. Business development in using NFC stickers as contactless payment method. Development and piloting of a mobile micro payments solution for a large multinational bank. — — Product development of an SMS payment solution for a large international bank. Product development and prototyping of a voice recognition mobile payment method for a large international bank.
Innopay is a member of the European Payments Consulting Association (EPCA) and the Payment Systems Market Expert Group (PSMEG) of the European Commission and an associate member of the Euro Banking Association (EBA). Innopay’s other key practices include: online payments, e-invoicing, e-identity, cards and related regulation. On most of these topics we regularly publish leading industry reports which can be downloaded for free. For more information visit www.innopay.com or contact us directly at firstname.lastname@example.org or +31 20 6580651.
Preface.......................................................................................................... 4 Innopay on Mobile payment................................................................................ 5 Management summary..................................................................................... 10 The attraction of mobile payments ...............................................................10 Towards a clearer definition of mobile payments ..............................................11 In which situations would mobile payments be successful?...................................11 Recent technical developments and their implications .......................................12 Lessons, trends and issues from analysis of global initiatives ................................12 Stakeholder cooperation and standardisation...................................................13 Seizing the opportunity..............................................................................13 PART 1 MARKET ANALYSIS 1 Introduction to this report ....................................................................... 15 1.1 1.2 1.3 2 Increased market activity around mobile payments ...................................15 The attraction of mobile payments .......................................................16 Trends and developments for 2010........................................................17
Towards a clearer definition of mobile payments .......................................... 20 2.1 2.2 2.3 What exactly is a mobile payment? .......................................................20 Scoping of this report ........................................................................22 Simplifying further through classification................................................23
In which situations could mobile payments be successful? ............................... 24 3.1 3.2 Risk is the key driver for transactional behaviour ......................................24 Perceived risk is determined by the ‘transaction context’ ...........................25
Recent technical developments and implications........................................... 32 4.1 4.2 4.3 Developments in contactless technology .................................................32 NFC Security issues ...........................................................................36
(Non-)availability of NFC enabled phones................................................33
Mobile payments 2010 - 8
4.4 4.5 4.6 4.7 4.8 4.9
Circumventing NFC-phones .................................................................34 Non-payment use of NFC ....................................................................35 SMS as a technology for mobile payments................................................41 SMS security issues ...........................................................................42 USSD as a technology for mobile payments ..............................................43 Increased broadband and the merging of channels.....................................44
4.10 Emerging ecosystem for Point of Sale NFC mobile payments.........................44 4.11 Conclusion .....................................................................................48 5 Lessons, trends and issues from analysis of global pilots and initiatives .............. 50 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6 Mobile payments..............................................................................50 Mobile parking payments....................................................................52 Mobile ticketing for public transport or events .........................................52 Mobile POS .....................................................................................53 Mobile money transfer: remittance .......................................................55 Lessons about drivers and barriers ........................................................56 New opportunities in the Payment Services Directive (PSD)..........................60
Stakeholder cooperation and standardisation ............................................... 64 6.1 6.2 Why stakeholder cooperation has been hard to achieve ..............................64 Standardisation ...............................................................................66
PART 2: MARKET OVERVIEW 7 Mobile payment services and pilots ............................................................ 73 7.1 7.2 7.3 7.4 7.6 7.7 Europe ..........................................................................................76 North America............................................................................... 110 Latin America................................................................................ 131
Middle East and Asia ....................................................................... 137
Australia...................................................................................... 170 Africa ......................................................................................... 171
...............................................................................................................190 Annex II: References.................................................... 197 General Internet resources ..............................................................................9 ........ 198 Annex III: About the editors and publishers............................................197 References..200 ...............................................................................Contents ANNEXES Annex I: Glossary .......................
For Mobile Network Operators. The benefits and opportunities seem clear for all parties involved. . However this growth did not materialise and mobile payments have in fact largely remained an undelivered promise for more than a decade. From the perspective of the end consumer. The attraction of mobile payments The attraction of mobile payments is unquestionable. faster throughput could also be achieved through contactless cards and it is yet unclear whether consumers would actually want or appreciate real time marketing messages from the merchant on their phone. They also hold the possibilities of allowing for diversification into other areas of the consumer’s needs and lifestyle and reducing churn amongst existing customers. Remote mobile payments provide another channel for merchants and as such are an attractive proposition if the use of the channel can gain wide scale adoption at lower costs than existing channels. Furthermore. there was similar activity at the turn of the millennium when there were also predictions of aggressive growths in mobile payments. with mobile devices slowly morphing into multi-media and multi-application devices. For merchants. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer. For those who remember. consumers are increasingly more comfortable with the mobile phone fulfilling more than one function.Management summary Mobile payments are hot! Again! There has been a lot of recent activity in the market around mobile payments with many pilots and live applications being launched around the world. the mobile phone has achieved ‘permanent share of pocket’. mobile payments are an attractive proposition for achieving a return on the investments made in infrastructure over the last two decades through both extra payment related revenues and the associated increase in air time and data use. For financial institutions mobile payments are a potential method for protecting the current account and surrounding loan products and avoiding further disintermediation from customers. i. They also provide the possibility of reducing cash and cost effectively servicing under-banked geographies.e. However. While the attraction of mobile payments is widely recognised there are some key development areas that must be given attention to make mobile payments a success. next to the wallet and keys it is the object that is most likely to be constantly with the consumer.
Management summary Towards a clearer definition of mobile payments In this report a proposal is made to view payments separately from other functions that can be performed with the mobile device. In addition. e. In which situations would mobile payments be successful? The key to beginning to answer this question is the realisation that a payment involves tension between a merchant-consumer desire to minimise risk and costs and maximise usability.g. ring tone. The current focus of these solutions is the promotion of their usability features (e.g. The key deterrent from consumer and merchant sides will be their high costs. etc). the needs of the end consumer need to be taken into account. Mobile payments are thus very different in user experience and business model from mobile banking or mobile authentication and should be treated as separate subject. obsolescence fees.11 .g. These psychological barriers include the overvaluation of current methods of payment and loss aversion where people are more upset at losing a benefit than they are delighted at gaining a similar benefit. The actual process of payment carries a high emotional weight with the consumer and merchant as both parties attempt to minimise payment risk (risk that the payment is not executed or guaranteed). interactive communication on mobile device. learning costs. Remote Point of Sale. While providers may gain temporary success with early adopters or niche industries they must focus on bringing down costs to establish any reasonable market share Public transport is likely to provide the highest volume potential for mobile payments. minimize costs and to maximise usability. contactless. These barriers imply that one of the keys to successful adoption of a new innovation is the degree of change demanded from the . activation fees.g. such as ordering or receiving digital goods. Most service providers are aware of the behavioural barriers of new products such as economic switching costs (e. Analysis of several contexts through this realisation shows that: Purchase of non physical goods (e. However it is not clear what advantages mobile payments bring in this context over contactless payments. The creation of mobile payment solutions needs to take these behavioural considerations around a payment into account. vending machine has obvious benefits from mobile payments if costs of these solutions can be kept low. NFC solutions should prepare for a long and hard battle to break into the Point of Sale market because of the attraction of existing solutions such as debit and credit cards. etc) would benefit from payment solutions that link directly to existing financial instruments such as current accounts and cards and allow for the use of these instruments without registration. parking. etc) but what service providers often don’t take into account are the psychological barriers associated with behavioural change.
the greater the chances of success are.e. SMS uses store and forward technology. The initiative listed in this report show that SMS and NFC are most frequently used to complete payment although the number using WAP/internet has risen.12 receiver of the innovation. Lessons. Recent technical developments and their implications Contactless technology has matured in the last few decades with the ability to communicate two-way.Mobile payments 2010 . compared to Japan for example. Many mobile payment initiatives are still in a pilot stage. i. while a simple and easy to use technology has a number of limitations that complicate its use in payments. These changes have made this technology suitable for use in payments. the message is stored with the operator on its way to the recipient or until the recipient becomes available. Often there is a maximum time limit for which the operator holds the message for delivery in case the recipient’s phone is unavailable. loyalty and smart advertisements that this technology is believed to be able to offer the most benefit. In some Asian countries there is a low internet penetration. trends and issues from analysis of global initiatives The mobile payment services offered differ per region and we have seen a strong increase in the number of mobile remittance services across the world. SMS. In developing countries which are underserved by the banking industry. Examples of widely used . a comparatively high mobile adoption and a push by the operators to offer mobile payments like mobile POS and mobile ticketing. In Western Europe the situation is different again as the region is generally not under-banked and has a high internet penetration but the uptake of mobile internet is relatively low. Most SMS-based mobile payment methods do provide a proof of delivery but this requires a second separate message to be sent which increases the costs of a single transaction and is especially not economical if transferred amounts are small. with a few notable exceptions that have been commercially launched on a large scale. SMS does not use any encryption and finally there is no proof of delivery within the SMS protocol. In other regions the focus is on POS and mobile ticketing with the notable exception of the USA and Latin America where we see a strong focus on mobile remittance. While this technology has received the most press in relation to payments it is in other non payment applications such as mobile ticketing. Also. The smaller the consumer’s change in behaviour needs to be. the focus remains on mobile money transfer via SMS. faster throughput and better security. especially in the USA. The success of the payments application of NFC will be dependant on the degree of success that these non payment applications achieve in the market and the degree of compatibility with these non payment applications.
financial institutions and other participants in the ecosystem User experience/easy to use Barriers Complex value chain with lack of co-operation Financial regulation Security/risk (perception of security/risk) Cost Unavailability of a broad range of mobile payment capable handset Lack of interoperability/lack of technology standards Stakeholder cooperation and standardisation One of the commonly cited reasons for the relative lack of success of mobile payments so far has been the absence of productive cooperation between key stakeholders. merchants mobile operators. Drivers Offering added value for consumers. This report describes some of the prominent attempts at standardisation including the GSMA. . the NFC Forum and EMVCo. some of these (in no order of priority) are: desire by players in each industry to diversify from their core businesses. debate over the location of the secure element and the inability to arrive at a workable revenue sharing model. Seizing the opportunity Mobile payments are currently again on top of mind. debate over who ‘owns’ the customer. namely the financial institutions and the mobile network operators. Mobey Forum. difficulties around branding in a cooperative model. Without the creation and usage of standards for mobile payments the industry risks the development of non-interoperable islands of pilots and solutions.Management summary commercially available services are Paybox in Austria. G-Cash in the Philippines. There have been many reasons for this lack of cooperation.13 . Our analysis of mobile initiatives around the world reveals the following key drivers and barriers for the adoption of mobile payments. NTT DoCoMo’s Osaifu-Keitai in Japan and M-PESA in Kenya. In this report we show that while mobile payments hold substantial attraction and potential there are several key issues that must be addressed to ensure success.
Part 1 Market analysis .
in 2006 the same sources predicted the market to reach only €10 billion by 20101.marketwire.1 Introduction to this report 1.1 Increased market activity around mobile payments There has been a lot of recent activity in the market around mobile payments with many pilots and live applications being launched around the world. Mobile payments have in fact largely remained an undelivered promise for more than a decade. however this growth did not materialise. However.mobilemonday. 80 70 Market size in billion USD 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mobile Monday prediction Juniper prediction Juniper actuals 2003-2007 Figure 1-1: The mobile payment market proves to be quite elusive. there was similar activity at the turn of the millennium. In 2009.com/press-release/Xcellink-International-Inc-1031269. For those who remember.html www. In 2002 market experts forecast that by 2006 €55 billion would be processed through mobile payments.pag?Src=RSS&docid=165875378 2 3 .com/prod/servlet/press-release.5 billion for the United States alone3. At that time there were also predictions of aggressive growths in mobile payments.frost. The reality is that market size and growth fall far short of most predictions and that growth is anything but given.net/news/mobile-payment-market-to-reach-eur-55-billion-in-2006 www. one source predicted that in 2013 an absurd $800 billion2 would be transacted by phone while another source predicted a much more conservative $1. 1 www.
Retail payments including mobile payments are more often than not a loss leader for these more profitable products.Mobile payments 2010 .2. financial institutions are primarily focused on protecting the current account and surrounding loan products. These areas for attention suggest caution amidst the current excitement around mobile payments. For mobile network operators mobile payments also hold the possibilities of allowing for diversification into other areas of the consumer’s needs and lifestyle. These areas for attention are listed later in this introduction and discussed in more detail throughout this report but first the attraction of mobile payments for the major stakeholders is examined 1.2. From a retail banking point of view. extra payment related revenues and through associated increases in air time and data use.3 For technology providers As with any technology led development. 1. Mobile payments also hold the allure for financial institutions of assisting in the ongoing battle to reduce the use of cash and its associated costs.2 For mobile network operators (MNOs) For mobile network operators mobile payments are an attractive proposition for achieving a return on the investments made in infrastructure over the last two decades through reduction of churn. there are some key development areas that must be given attention. Financial institutions are keen to avoid the further worsening of this situation through third party mobile payments. 1. mobile payments hold the most promise for technology vendors and systems integrators.1 For financial institutions (FIs) For financial institutions4 mobile payments are first and foremost a defensive play. Furthermore in developing geographies mobile payments offer financial institutions the opportunity to cost-effectively capture and service non and under-banked communities.2. These organisations are positioning themselves to provide the infrastructure and messaging for mobile payments and in the process offering to act as a trusted intermediary between the banks and the mobile network operators. From a wholesale banking point of view financial institutions have already been disintermediated to some degree from their wholesale customers by third parties in the area of online payments.2 The attraction of mobile payments 1. 4 See glossary for definition of ‘financial institution’ and other payments terms .16 While the attraction of mobile payments is widely recognised.
consumers are increasingly more comfortable with the mobile phone fulfilling more than one function. for the important task of handling their payments? 1.2. i.17 .1 Towards a clearer definition of mobile payments Today. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means).e.3. Furthermore. This lack of coherent definitions and mutually shared categorisations across the industry is one of the factors . However un-manned or remote Point of Sale locations could benefit from mobile payment by allowing a reduction in servicing costs. Remote mobile payments provide another channel for merchants and as such are an attractive proposition if the use of the channel can gain wide scale adoption at lower costs than existing channels.Introduction to this report 1. However. the mobile phone has achieved ‘permanent share of pocket’.2. The following are the key trends and developments for 2010: 1. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer.4 For handset manufacturers The success of the use of the mobile device for payments has the potential for resulting in a substantial increase in both sales to new customers but also for the renewal of existing devices in the market to ones that are payment capable. with mobile devices slowly morphing into multi-media and multi-application devices. However. there are many ways in the market to define what a mobile payment is and almost as many ways of categorising mobile payments. mobile banking. Industry professionals cannot come to an agreement on the exact definition of a mobile payment. next to the wallet and keys it is the object that is most likely to be constantly with the consumer.6 For consumers From the perspective of the end consumer. There is often confusion and overlap between mobile payments. 1.2.3 Trends and developments for 2010 The un-debatable attraction of mobile payments for certain market parties and the resulting market interest is causing significant investment in the creation of mobile payment products and in the execution of pilots.5 For merchants For merchants. faster throughput could also be achieved through contactless cards and it is yet unclear whether consumers would actually want or appreciate real time marketing messages from the merchant on their phone. does this mean that end consumers are ready to abandon the wallet and rely primarily on the phone. 1. which is more a lifestyle or leisure tool.
The prevalent thinking in the market today seems to be that just because mobile phones are ubiquitous and interactive that they are therefore a natural choice for the addition of payment functionality.3. In section 2 a proposed definition and categorisation is provided that takes the best of what is out there in the market today and provides the foundation for this report. This reasoning may prove to be false. Introduction of innovations into markets of embedded incumbents requires careful consideration of the behavioural aspects of adoption of innovations. standardisation and contributing to the creation of a lot of unnecessary noise around mobile payments. Without a clear and widely agreed definition and taxonomy it is difficult to envisage the rapid and consistent growth of this business.3 Recent technical developments and their implications What have been the recent advances in contactless technology? NFC payments have received a lot of press of late but what exactly is the status of introduction of NFC enabled phones? What are the most popular non payment applications of NFC technology and what are the implications for mobile payments? How does SMS technology work and what are its advantages and disadvantages for an application such as payments? The availability of high speed broadband on mobile devices is increasing. Context analysis is explained in section 3 and applied to various situations to arrive at a view of potential success of mobile payments in those situations. Mobile payments are an innovation.Mobile payments 2010 . Context analysis looks at the payment behaviour of the various actors in a transaction.18 limiting cooperation.2 In which situations would mobile payments be successful? Core to the analysis in this report is the study of the various contexts in which mobile payments may be successful. It is likely that many of the pilots and initiatives being quickly launched today have not examined this critical question closely enough. In the latter parts of section 3 these behavioural aspects are examined and some strategies provided for overcoming the affiliation of payments users to incumbent payment products.3. Not all things that ‘are logical’ also actually happen. By taking into account the goals and outcomes that the actors want to achieve in a transaction this analysis can help to predict the payment behaviour of the actors and their desired characteristics from payment methods in various transaction situations. 1. what implications if any does this have for the development of NFC and SMS based mobile payments? In section 4 of this report these recent technical developments and their implications for the development of mobile payments are examined. . 1.
g. premium SMS).Introduction to this report 1. trends and issues from analysis of global initiatives There are a number of mobile payment pilots and initiatives in motion around the world today. There have been and continue to be several attempts at standardisation. Similarly standardisation is considered to be essential to the long term survival and growth of mobile payments. Section 6 of this report describes the importance of standardisation for mobile payments and looks at some of the current attempts and their status.19 . Why has such cooperation between these stakeholders been so difficult to achieve so far? In section 6 the current barriers to cooperation are examined. Different geographies have different levels of progress and maturity in different applications of mobile payments.3. For example several African countries make use of mobile payments for peer to peer remittance and to reach the un-banked. 1.3.5 Stakeholder cooperation and standardisation It is generally accepted that cooperation between stakeholders (at the least financial institutions and mobile network operators) is required to bring mobile payments to the mass market.4 Lessons. While mobile network operators have tried in the past to address the market independently they have generally found it difficult as they lack the financial and risk management expertise of the financial institutions. Asian countries such as Japan and South Korea are well advanced in the use of the mobile phone for Point of Sale payments and the mobile device in these geographies is slowly morphing into a single device with multi – payment applications. What can be learned from each application of mobile payments? What geography specific contexts should be taken into account? In section 5 of this report the current various applications of mobile payments and the trends and characteristics of these applications are examined. . Europe is actively experimenting with Point of Sale NFC payments. The resulting mobile network operator only solutions have generally been limited to market niches (e.
Additionally a simple classification of mobile payments by location and funding method is offered. Mobile payment – a payment (transfer of funds in return for a good or service) where the mobile phone is involved in the initiation and confirmation of the payment. In section 3 of this report. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means). classifications are examined more closely and several alternative possibilities are offered for classifying mobile payment methods. In this section a proposal is made to view payments separately from other functions that can be performed with the mobile device. . Mobile delivery . Mobile banking – access to banking functionality (query + transaction) via the mobile phone.g. There is often confusion and overlap between a mobile payment. This includes the provision of part or all of the banking functionality already provided by banks over the Internet in the form of online banking. professionals across these industries have not yet come to a clear and mutually agreed definition and classification of mobile payments. However. These are: — Mobile order – transactions where the mobile phone is used simply to initiate the order (but not to make the payment). telecommunication and technology circles right now. The location of the payer is not important: he may or may not be ‘mobile’ or ‘on the move’ or at a Point of Sale. Mobile authentication – use of the mobile device to authenticate the user either as part of a payment transaction or to give access to some information or functionality. an event ticket (but not to make the payment).transactions where the mobile phone is used simply to receive delivery of goods or services. — — — — In our definition initiating a payment such as a bank transfer while within the bank’s provided mobile banking environment would not be classified as a mobile payment but for the sake of simplicity would remain simply a feature of mobile banking. This lack of agreement and specifically the bundling of payments with other processes such as ordering and delivery creates confusion and slows the development in this field. 2. There are four main areas for the use of a mobile phone in the context of a financial transaction. e. mobile banking.2 Towards a clearer definition of mobile payment Mobile payments are a hot topic in financial.1 What exactly is a mobile payment? One of the issues with mobile payments in the market today is the lack of a clear and shared definition across the industry.
Such payments can be discussed separately as attributes or features of mobile banking. Some examples may help to clarify these definitions further: Example Mobile order Initiate a bill payment via mobile banking environment M-Banxafe (Belgium) Transfer funds by submitting an instruction to the bank through a bank provided mobile banking environment M-Banxafe (Belgium( Payments at a physical point of sale Paybox (Austria) Purchase of a mobile ring tone Jamster (United Kingdom) m-parking Mobillzahlen Handyparken (Germany) Yes (start and end) Yes (can be mobile or internet) Yes (if deducted from pre-paid amount or billed by MNO) Yes (amount is charged to the telco bill or deducted from pre-paid amount) m-ticketing Touch&Travel (Germany) Yes (can also be via Internet or other means) No (payment is generally not by mobile) Yes (e.21 . The large majority of applications simply use the mobile phone to initiate the order. receive delivery or authenticate the consumer. only a subset involve actual payment with the mobile.g. Of the current applications of the mobile phone in a transaction.Towards a clearer definition of mobile payment The implication of our proposed definitions is as follows: Payments made within the confines of the bank provided mobile banking environment can be effectively removed from the detailed discussion around mobile payments. 2D ticket or reservation code) No No No No No Yes No No No Yes No No No No No No No Yes No Mobile payment No Mobile delivery No Mobile authentication No Mobile banking Yes .
2. payment takes place via other means (cash/card) Mobile delivery Yes (notification and balance upgrade) No Mobile authentication No Mobile banking No m-top up (many mobile operators) Yes Vending Mobipay (Spain) No Yes (initiation and confirmation) No No Smart billboard/tags People’s Bank (Georgia) P2P remittance M-Pesa (Kenya) Yes Yes Yes No No Yes Yes (confirmation) Yes (notification beneficiary) No No Internet (or other channel) payment where the mobile phone is used as part of the authentication process BankID (Norway) No No (initiation and confirmation of the payment are still online) No Yes No Table 2-1: Examples of mobile payment definitions The current overlap by the industry of such diverse functions as banking. order. By confusing and using the term mobile payments for non payment functions such as banking. as defined in the previous paragraph: a payment where the mobile phone is involved in the initiation and confirmation of the payment.2 Scoping of this report The scope of this report is limited to mobile payment.Mobile payments 2010 . .22 Example Mobile order Mobile payment No. delivery and authentication the industry is diluting or blurring the specific needs of each function and in the process not adequately identifying and meeting these needs. order. delivery and authentication under the common label of mobile payments has some negative consequences for the development of mobile payment solutions.
3 Simplifying further through classification Given the above definition of a mobile payment there are two dimensions for further classification. The reason is the availability of a plethora of services based on that principle and that the developments are not really interesting for the field of mobile payments.23 . we will also pay attention to interesting mobile banking and mobile ticketing. The charges for these services are deducted from the pre-paid credit of the user or billed via the MNO. but which is not included in great detail in this report is premium SMS and premium rate phone numbers. where we give a description of the most relevant payments initiatives. The more theoretical part 1 focuses on mobile payments. Services are very similar to each other and almost every MNO supports these services. specifically remote or point of sale By funding method These dimensions are defined in more detail through the diagram and accompanying examples of applications below: Table 2-2: Classification of mobile payment initiatives In this section a usable definition of mobile payments has been offered and a clear differentiation made between mobile payments and other services performed on the mobile device. 2. minus premium rate SMS and premium rate phone numbers.Towards a clearer definition of mobile payment A method that is included under the definition of mobile payments. Also a simple categorisation has been offered for mobile payments and popular initiatives and pilots have been plotted within this categorisation. In part 2 of the report. Examples have been provided of these differences. these are: — — By location. . In the next section some of the situational and contextual factors that can impact the success of mobile payments are examined.
internet and mobile phone) things changed drastically. The amount of risk between buyer and seller is distributed evenly: the buyer receives delivery when the seller is paid. 3. causing most new payment methods to fail.1 Risk is the key driver for transactional behaviour The amount of perceived risk is determined by the timing and location of the: — — — Agreement. Payment and Delivery take place on the same moment. April 2007 .3 In which situations could mobile payment be successful? This section is based on academic research by Innopay that shows that the selection and usage of payment solutions depends strongly on situational factors defining the perceived risk5. In traditional commerce the Agreement. Buyers make different judgments than sellers and therefore any payment solution balances risk mitigation. Both consumers and business thus feel variying degrees of risk for concluding the agreement. H. A transaction occurs when both parties experience an acceptable balance between the three factors. Consumers tend to overvalue existing payment methods while businesses overvalue new innovative payment methods. Businesses introducing new mobile payment methods must take this bias into account and be prepared with strategies discussed in this section. usability and cost between buyer and seller. This is the case in a typical retail setting (purchase of furniture being a notable exception). Then came telephone and internet ordering and now it is possible to order and pay with your mobile. ‘Distant commerce’ has decoupled time and place thereby introducing feelings of risk associated with each step in the process. Lycklama. D. First there was the introduction of mail order in the middle of the previous century. Delivery. With the introduction of media (mail. Liezenberg. see ‘Understanding buyer and seller behaviour for improved payment product development’. Journal of Payment Strategy & Systems. C. 5 For the detailed academic overview of the concepts in this section. Payment. Smorenberg. the payment and the delivery.
Examples of physical locations are shops. Repetitive transactions (e.25 . it was found that four generic factors constitute the transaction context. Virtual and/or distanced locations of the actors transacting typically increase the Risk perceived. Location The location of a transaction process. markets and vending machines.g. Relation The relation between the buyer and the seller. changing also the risk perceived. First a better understanding of these risks is required. Processes can be executed simultaneously or disconnected. Timing The timeline and order in which the processes are executed. In the latter case the order of Payment and Delivery can be swapped. Location can also be related to the geographical distance between buyer and seller. 3. Payment and Delivery in the transaction processes 2. Three types of relationships are distinguished: anonymous. With low trust. Virtual locations refer to ‘channels’. . From analysis and practical experience. which in effect determines the risk perceived by the actors in a transaction: 1. known and trusted. parties will seek more guarantees during the transaction process.In which situations could mobile payment be successful? When applying this concept to mobile payments it will become clear that minimizing perceived risk is conditional for any success. such as mobile.2 Perceived risk is determined by the ‘transaction context’ The perceived risk by sellers and buyers is strongly determined by the context of the transaction. physical or virtual. internet and email. 3. The type of relation influences the perceived risk for both parties. This context factor is a dynamic one: over time the relation between buyer and seller changes. This leads to three generic types of timings as shown in Figure 3-1below: Figure 3-1: Different timing and order of the Agreement. rent) typically lead to a higher degree of trust than incidental transactions. subscriptions.
small high value electronic products are an attractive fraud target. Also the nature of the product influences the risk: e. Product The characteristics of the product delivered.g.2. Core characteristics are the value (high/low) and substance (virtual/physical). Mobile payment solutions linked to virtual wallets are the least likely solution to be successful in this context because of the extra steps involved in setting up and maintaining the wallet. The currently popular payment methods in this context are fairly expensive which implies that new parties offering direct debit solutions can quickly establish cost differentiation and/or benefit from reasonable margin. etc). The substance of the product directly relates to the delivery channel. Parking with a mobile phone Our analysis shows that direct debit from current account is the most suitable solution in this context.26 4. Physical products obviously can not. Purchase of a CD in a shop NFC based mobile payment solutions will find it a long and hard battle to break into this market because of the attraction of existing solutions such as debit and credit cards. these can be delivered through electronic channels. 3. However our analysis shows that the key deterrent for NFC POS solutions from consumer and merchant sides will be their high costs. The focus of current NFC solutions and pilots is predominantly on promoting their usability features (e. In case of electronic/digital products. interactive communication on mobile device. Context Purchase of a ring tone Summary Mobile payment applications that debit from a current account would be popular for this context as long as a reputable party was perceived to be making the deductions (thereby reducing the perceived risk from the buyer). The one main downside of this solution is the need to pre-register. Providers that can innovate through a solution that offers no registration requirements but still deducts the payment amount from the current account will find the greatest success in this market. While providers may gain temporary success with early adopters or niche industries they must focus on bringing down costs to establish any reasonable market share. The existing solutions while highly usable are relatively extremely costly.1 The likelihood of success For each context the table below shows the likelihood of success for mobile payment methods. High-value products require more guarantees than low-value products. A cooperative solution between mobile network operators and banks that uses the mobile device for payment confirmation but actually uses underlying debit or credit deductions to make .g. TV voting with SMS This context has been ripe for a new innovative solution for a long time now. Especially the value of the product strongly determines risk perceived by both actors.Mobile payments 2010 . contactless.
Businesses spend billions of dollars improving existing products and processes only to find consumers roundly reject them. Table 3-1: Summary of score of payments methods in different contexts Scientific literature6 presents the premise that more often than not sellers or solution providers are more excited and eager about their solution than the customers they target. Harvard Business Review. Remittance Within sending countries it is difficult to see advantages for the use of any other solutions besides online initiation of the remittance. 6 ‘Eager Sellers and Stony Buyers. J. Addition of the payment amount from the mobile device bill could be easily achieved given current market capabilities but would be an expensive option compared to the average transaction value. However mobile network operators and financial institutions will need to agree on a suitable revenue share that keeps the cost to the consumer at or below the costs of using card solutions for mobile NFC to be successful in this context. Public transport Contactless card solutions are a proven success in this context. Understanding the Psychology of New Product Adoption’. an SMS based mobile solution could successfully enter this market. successful implementations include Hong Kong – Octopus card and the London Oyster card. Vending machine SMS and NFC mobile solutions have obvious advantages in this context over cash if costs of these solutions can be kept low. Studies quoted by Gourville state that over the last 25 years new products have failed at the staggering rate of 40%-90%. Gourville. parking and TV voting mentioned above. Pizza order via telephone While cash is the current dominant solution in this context. June 2006 . as for purchase of a ring tone. or low online penetration. Migration of the contactless functionality to the mobile device would be a natural evolution.27 . Again in this context. a cooperative model between mobile network operators and financial institutions that deduct the amount from the current account would achieve success in this context. However in reality in such countries the receiver must eventually convert the electronic money into cash to spend it so the presence (and associated costs) of a retail cash dispersion outlet will remain. Why would senders want to initiate via a retail outlet (more expensive) or via a mobile device (more cumbersome input) when they can do so online? Within receiving countries receipt of the amount on the mobile device sounds theoretically attractive in under-banked countries with high mobile penetration.In which situations could mobile payment be successful? Context Summary the payment would find success in this mature and highly profitable market. T.
e. What businesses don’t take into account. In the case of new payment methods for example. As companies know. consumers incur: — — — Transaction costs. Therefore. psychological bias called status quo bias: people irrationally overvalue benefits they currently possess relative to those they don’t. The less change demanded the less impact is likely from these two psychological biases in the innovation being accepted. loss aversion.2. it’s not enough for a new product to be better.Mobile payments 2010 .3 The psychological costs of changing Many products fail because of a universal. unless the benefits (of the new product) far outweigh the losses (from not using the existing product). such as activation fees. In the case of payment products this bias leads consumers to value the advantages of payment products they currently use more than the benefits of new ones and for business executives to value the benefits of innovations they’ve developed over the advantages of incumbent products. New products often require consumers to change their behaviour. are the psychological costs associated with behaviour change. however. . 3. Status quo and loss aversion biases imply that one of the keys to successful adoption of a new innovation is the degree of behavioural change demanded from the receiver of the innovation. those behaviour changes entail costs. Furthermore people tend to display a second psychological bias.2 Why innovations fail Why do consumers fail to use innovative products even when these products offer distinct improvements over existing ones? Why do companies invariably have more faith in new products than is warranted? An analysis into the behavioural aspects of innovation introduction explains why so many products fail and outlines some actions that companies can take to improve their chances of success. Learning costs such as learning how to use a new payment method and Obsolescence costs for discarding existing methods and processes All of these are economic switching costs that most companies usually anticipate.2. they are more upset at losing a benefit than they are delighted at gaining a similar benefit.28 3. but largely ignored. This is depicted in the matrix below which plots behavioural change demanded from the consumer with the product change inherent in the innovation. i. consumers will not adopt it.
with little to no modification can be used online. 3.2.In which situations could mobile payment be successful? Figure 3-2: Classification of innovations along behaviour change and product change axes. The promise of WAP was to bring the familiar online interface to which a consumer was .2. This is the reason why in countries where credit cards were already a popular payment instrument offline. Examples from the realm of online payments are credit cards.4 Easy sells At the top left of the matrix are the ‘easy sells’. they have also become a popular payment instrument online. product modification is low. 3. The high product changes and the limited behavioural changes have made these online credit transfer systems a ‘smash hit’ in the countries in which they have been implemented. An example in this category is the Wireless Access Protocol (WAP) which at the turn of the millennium was believed to hold much potential. consumers are accustomed to using the credit card in the physical world and to use it online by entering the card details with their keyboard (instead of reading the card number to an operator on the phone for example or swiping it at a point of sale) is not a large behaviour modification. these entail little product changes but significant behavioural changes. Furthermore. Again an example from the world of online payments is the popularity of online banking based payment systems such as iDEAL in The Netherlands and Giropay in Germany. The original online banking product is modified considerably at its interfaces to serve this function so the product changes are high.e. i.29 . 3.5 Smash hits At the top right of the matrix there are the ‘smash hits’. However to the consumer they are still using their tried and tested online banking interface and authentication mechanisms to complete the payment so behavioural changes for the consumer are low. Credit cards are a payment instrument that was never meant or designed for use online. These payment methods use online banking processes and authentication mechanisms to authorize a payment.2. However the product.6 Sure failures At the bottom left of the matrix are the ‘sure failures’.
30 accustomed. fast throughput through the ability to swipe and authenticate even before the order is completed on the register and easily accessible and useful reporting have made the debit card more popular than cash. The product change or additional benefit to the consumer was low.g. 3. they were accessing the same online functionality on their phones however the behavioural change was quite high as consumers had to contend with slow speeds due to low bandwidth on their phones and to navigating with the small keyboards on their phones. However where it has been successful its introduction has been invariably accompanied by . in most NFC pilots. these entail significant product changes and significant behavioural changes. Online banking as an innovation has involved significant behavioural change compared to visiting a physical branch. The Netherlands. The next step for mobile payment methods which generally fall under the ‘long haul’ category is to be patient and prepare for a long product acceptance period and to not deplete resources too quickly. Needless to say WAP did not achieve much success.g. etc). 3. Finland. An example in this category is NFC enabled mobile payments at the point of sale.7 Long hauls At the bottom right of the matrix are the ‘long hauls’. cards etc can not deliver. The product changes are considerable. to the mobile phone. Another approach to managing consumer resistance is to strive for greater than 9X increase in new product benefits making the relative benefits of the new innovations so great that they overcome the consumer’s outweighing of potential losses. while the product changes are high.8 Strategies for successful mobile payment methods What can introducers of new mobile payment methods do to overcome these behavioural barriers to innovation adoption and become a success? The first and foremost action is to recognize and acknowledge that these behavioural biases exist both in consumers and in the introducers of mobile payment methods.2. where the benefits such as. the behavioural changes are also high for a consumer in moving from cash/cards to their phone as the payment device. low cost of processing even for small transaction amounts. e.Mobile payments 2010 . A third strategy is to simply eliminate the old product if possible and at the least make it far less attractive than the new innovation. All functionality that existing Point of Sale payment devices.2. the consumer need only swipe their phone in front of a contact less reader instead of fumbling with cash or swiping a credit or debit card. cash. Furthermore the consumer can receive sales receipts. loyalty points and marketing messages and can check their balance and transaction history directly from their payment device. A classic example of this has been the introduction of online banking over the last 10-15 years. However. An example of this from the world of payments has been the success of debit cards at manned point of sales in some Western European countries (e.
Another strategy is to simply make behaviourally compatible products. . Several situations have been reviewed in which mobile payments may be used and mobile payments have been compared with existing payment methods across the criteria of Risk. In this section the importance of minimising risk and cost and maximizing usability in a payment transaction has been examined. credit cards for use in the online world are an excellent example of this as mentioned above. These are the early adopters. In the next section recent technical developments and their implications on mobile payments are presented.31 . Also some strategies to overcome behavioural and psychological biases in adopting innovations have been proposed. Usability and Cost. Most of the NFC pilots across Europe are targeting such consumers and merchants and generally finding success with these early adopters. This is the reason why new product innovators invariably target children and teens to establish a niche and this may also be a useful strategy for mobile payment method innovators wanting to establish a niche in a market such as for example local peer to peer remittance. An additional strategy is to seek out consumers or niches that do not currently use any incumbent product in that particular category.In which situations could mobile payment be successful? either a parallel closure of physical branches (removing the old product) or a surcharge for using the branch (making the old product less attractive). A final strategy is to find consumers who prize the benefits they would gain from a new product or only lightly value those that they would have to give up.
from the code to the reader. Examples of vicinity contactless are access control where you are not required to take your access device out of your wallet or bag and logistics where scanning can be done at a greater distance without the need for containers to be unpacked. In this context it is critical to understand the nature and limits of these technologies. passports. this technology has a much smaller read distance. Finally two popular technologies for remote payment applications are examined. . animal identification.5 meters (3 to 5 feet). 4. It is also shown that the availability of broadband on the mobile device is improving rapidly and that this is likely to create further opportunities for the development of mobile payments in the area of intersection of three core technologies: Internet. Eager NFC-based payments initiatives increasingly rely on NFC-stickers. It is shown that the commercial availability of NFC phones remains limited. It is likely to be other non payment applications that will first result in wide scale use of NFC technology. The small read distance leads this technology to be used in many day to day applications such as the office access cards.1 Developments in contactless technology Contactless technology has been around for a while and it is used regularly in our daily lives. For example. It will be the compatibility with these non payment NFC applications that will determine and pave the road to the success of NFC payments. Proximity. libraries. SMS and USSD and note that SMS technology is not inherently suited for the payments function (except for payment initiation) and that USSD while less user friendly has seen some reasonable use in payment pilots around the world. In this section first the developments in contactless technologies are reviewed and the recent changes that have spawned the NFC phenomena are examined. most office access cards use contactless technology as do retail security gates that release a sound if an item is passed through them with the security tag still intact. this technology offers a maximum read distance of 1 to 1. — Radio frequency identification or RFID is a well known application of contactless using both vicinity and proximity technology. RFID is used extensively in areas such as product tracking. the restriction of RFID has always been that it is a one way communication standard. usually about 7. etc. However.5 centimetres (3 inches) in most instances. thereby circumnavigating phone manufacturers. Contactless technology can be divided into two categories: — Vicinity.4 Recent technical developments and implications The operation and success of mobile payments is inseparably linked to the key technologies that make mobile payments actually possible. SMS and NFC.
has a shorter range than that makes it more secure for use in crowded places. Samsung and Philips presented an NFC enabled phone at the GSM 2006 conference in Barcelona. The standard was called Near Field Communication or NFC and while this standard was available throughout the 1990’s it was only acknowledged by the ISO organisation in 2003 and from that moment became an open standard for two way contactless communications. because of the interactive communication opportunities offered by the two way capabilities of NFC. but this phone is still not commercially available7. These developments have been the catalyst for an explosive growth in the use of contactless technology for payments with the volume of contactless cards growing to hundreds of millions helped in part by strong marketing pushes from the major card schemes. NFC is often compared to Bluetooth. Sagem released the Sagem My 700X NFC in 2007. this technology only offers its full potential when used with an interactive device such as a mobile phone. Along with the development of two way contactless communication there have also been recent advances in the speed with which the data is transferred and the security of the transferred data through encryption. The two companies jointly developed a standard for two way contactless communication.Recent technical developments and implications This restriction was resolved in the 1990’s by Philips and Sony. However. Several of the mobile phone manufacturers are currently providing prototype 7 http://mobilementalism.2 (Non-)availability of NFC enabled phones The market for NFC enabled phones is still in an early stage of development. less chance of interference.33 . At the time of writing of this report there is still only one NFC enabled phone commercially available on the market: the Nokia 6212. but demand for this mobile phone was disappointing. called Samsung X700 NFC. Without going into too much of the technical details. Other NFC phones have been created8 but only for NFC trials and are not yet commercially available9. it can be said that NFC is a more advanced and preferable technology for payments than Bluetooth as it offers faster connection between devices. and finally NFC can be used even when the enclosing device has a depleted battery or is switched off while Bluetooth cannot be used in such conditions. The recent developments in contactless technology culminating in the registration of NFC as an open ISO standard have been the catalyst for the recent renewed interest in NFC based point of sale payments using a mobile device. Nokia expects the 6212 to be available at the start of 2010.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfc-phone-at-3gsm/ . faster data transfer speed and increased data security have made contactless technology ripe for use in payments. The critical developments of two way communications. 4.
com/news/communications/0.com/documents/nfc_services_0207.php?id=45 www.39044192.Mobile payments 2010 .11 The diffusion of NFC-enabled phones has been subject of many speculations.gsmworld. In early 2007.62031790. GSMA already indicated that ‘the design of new mobile handsets for NFC mobile devices is a key point that needs to be considered. This. This rapid uptake has yet to materialise. In order to pay using these stickers. 60 Pre dicte d % of phones shipped in 2011 be ing NFC-e nabled 50 40 30 20 10 0 07-2006 10-2006 01-2007 04-2007 07-2007 10-2007 01-2008 04-2008 07-2008 10-2008 01-2009 04-2009 Date of prediction Figure 4-1: NFC enabled phones are also proving to be quite elusive. may quickly change as technology firms Innovision and NXP are pooling their NFC expertise to provide a combined offering to potential customers looking to integrate NFC into handsets.00. 8 www.at/index.htm www. NFC-stickers may be a stopgap solution.com/documents/pbm/gsma_pbm_white_paper_11_2007.gsmworld. however. consumers need to hold their mobile device close to a reader.3 Circumventing NFC-phones While waiting for NFC handsets to become available. the deal could well make sure that NFC is being built into mass market handsets for under USD 1.pdf www.zdnetasia. An NFC-sticker is a sticker equipped with advanced radio frequency technology (RFID).34 NFC-enabled mobile phones for trials by mobile operators with plans to provide commercial versions of the phones in 200910. According to the participants. 4.pdf 9 10 11 . Many established market research firms like ABI Research and Juniper have marketed reports predicting a rapid uptake in shipment of NFC-phones. It transmits card information to the merchant's terminal via NFC technology.nfc-research.
for example to access public transport systems — Loyalty application: the NFC device is used to identify the user and receive updates regarding loyalty status (points). Turkish Garanti Bank and American Citi bank have introduced their own plans for mobile payments. was among the first banks to offer its consumers a small version of the card they can stick onto the back of their mobile telephones.12 In a separate move. for example at a supermarket or hotel Smart advertisement application: the NFC device is used for example to access information from a smart poster at a bus stop — Physical access: the two way interactive capabilities of NFC allow the user to authenticate themselves for example to control access to home or office Logical access: the NFC device is used to authenticate for access to electronic data. Issue 16. sees this approach as a bridge to fully integrated contactless m-payments services using NFC technology. 2. 4. This allows the customer to use their phones to make low-value purchases with PayPass – without the need for handsets that support NFC. that offers the PayPas service. it announced to make use of NFC-enabled stickers. The stickers measure about one-quarter the size of a standard bank credit or debit card.35 . US-based mobile commerce company Mobile Candy Dish for instance.Recent technical developments and implications MasterCard. This sticker however is not strictly related to mobile payment: the consumer can decide to put the sticker on his mobile phone. Already in Q2 2008. Listed below are the key non payment applications of NFC: — Mobile ticketing: the NFC device acts as an access token. Turkish Garanti Bank. circumventing mobile network operators and mobile phone manufacturers altogether. for example to control access to a computer network — — 12 Mobile Payments Update vol. has decided it cannot afford to wait for NFC handsets to become available. The sticker cuts telcos and mobile phone manufacturers out of the loop. making the bank the only institution to handle mobile payment transactions. The success of the payments application of NFC will be dependent on the degree of success that these non payment applications achieve in the market and the degree of compatibility with these non payment applications. The Paypers/Telecompaper . but also on his wallet or credit card.4 Non-payment use of NFC While NFC technology gets a lot of press in relation to payments it can also be used in a number on other non-payment applications. which launched Europe’s largest contactless payment card trial with its Bonus PayPass credit card.
— — — It is the first three applications in this list. Attacks on the NFC payment process can be divided in three categories – parallel to the NFC process: 4. the target device (phone) may draw its operating power from 13 www. 4. it is easier and probably more rewarding to target a different part of the NFC payment process. loyalty and smart advertisement that are believed to provide the most compatibility with payments. In order to distinguish fact from fiction. mobile ticketing.36 — Health care application: the NFC device is used for example to store medical information for use in emergencies Digital rights management: the NFC device is used for example to allow controlled exchange of purchased music or multi-media data Automotive application: the NFC device is used for example to control access to a car Bluetooth pairing: in the future pairing of Bluetooth 2.1 Attacking the reader Attacking the reader means modifying someone’s mobile telephone and the NFC reader in it. searching. 4.5 NFC Security issues From a users’ perspective. This implies that the fraudster should have access to the mobile phone for a certain period of time.5.org/nfc/feed/collin_mulliner_25c3_attacking_nfc_phones. pairing and authorization will be replaced by a simple ‘touch’ of the mobile phones. NFC communication comes in two modes: The passive communication mode: the initiator device (in this case the tag) provides a carrier field and the target device (in this case the phone) answers by modulating the existing field.1 devices with NFC support will be as easy as bringing them close together and accepting the pairing.5.pdf . some of the security issues for NFCbased mobile payments are described in this section.Mobile payments 2010 . Collin Mulliner13 states that the weakest link in the chain is the passive NFC tag. The process of activating Bluetooth on both sides. In this mode.2 Attacking the tag In a landmark study of the Fraunhofer Institute SIT. waiting. As the number of applications for the NFC-phone is still quite limited. Also.mulliner. this method is not deemed to be rewarding. the perceived lack of security of NFC technology is an inhibitor for adoption.
C and D could be replaced with tags that point to vending machine A. the item bought would be dispensed from machine A — straight into the waiting hands of the fraudster. A tag set to send a free SMS text containing the latest weather forecast could be replaced with one that instead placed an order for a premium ring tone. for example. Only after tapping. "The Nokia 6212 . But the low price of the tag is not only an advantage: for fraudsters it’s also quite simple to purchase a tag and replace a ‘common’ tag by one of their own. visiting Vienna and Frankfurt to look at both transit ticketing and vending machine applications. The replaced tag cannot be identified as such by someone who wants to tap his NFC phone on it. took them seriously and responded promptly. The active communication mode: both initiator (tag) and target (phone) communicate by alternately generating their own field. This is because the tags are cheaper and because transactions can take place even if the target device (phone) has no power supply (battery) on its own. A smart poster could include a tag set to deliver a freephone number to a user's handset. are exchanged using passive communication mode. The result. whenever anyone made a purchase at any of those machines. Then. that when an NFC handset owner interacts with a tag on a movie poster or tourist information map. is that many of the issues uncovered during the initial testing have now been fixed — but there are still issues. Mulliner gives some examples: A smart poster could include a tag set to deliver a free phone number to a user’s handset. This could be replaced with a tag set to deliver a premium rate number belonging to the fraudster instead. Mulliner found out that especially the passive communication mode is vulnerable to attacks. the victim can see what the tag intends to do with the phone. he identified that the NFC tags on machines B. even if the phone’s battery is flat. since the majority of messages exchanged via NFC. This is bad news.Recent technical developments and implications the tag’s electromagnetic field. In a group of four vending machines. instead of the tag performing the expected operation it would instead do whatever the fraudster had set it up to do. for instance. This means. he revealed at 253C. Mulliner then presented his findings to Nokia who. Mulliner's examples of how this could be exploited included: A tag set to send the browser on a user's handset to a particular website could be replaced with one set to send the user to a different website. Mulliner then took a look at how this all might work in the field. Mulliner also looked at the potential vulnerabiities of the existing SMS-based NFC ticketing system on Vienna's Wiener Linien and OBB's Handy-Ticket and also at RMV's Handy Ticket system in Frankfurt. Both tag and phone need a power supply. he says. enabling the NFC-payment to take place.37 .
38 Classic is not vulnerable to most of the bugs I found in the Nokia 6131 NFC. which are called the ghost and the leech. up to a distance of 50 m. As a result the legitimate owner will remain unaware of the attack.cam. Figure 4-2: Schematic representation of a relay attack system The main idea of the ghost and the leech is to create a bidirectional communication channel between the genuine reader and the victim card. The channel passes through the leech and the ghost and provides transparent communication between the reader and the card at a range that is much greater than the nominal system range. 14 A practical relay attack on ISO 14443 proximity cards by Gerhard Hancke. University of Cambridge.pdf . Simply relaying information between the card and reader over a longer distance does not require the same technical resources from the attacker as hardware tampering or cryptanalysis. but it is not impossible. An attack which effectively allows an attacker to ‘borrow’ the victim’s card for a short period without requiring physical access to the victim’s card is possible. This attack is therefore a feasible method for circumventing current security protocols with little effort. UK www. The basic relay attack system is built using two devices. it is oftentimes thought that the attacker must be within this range too. Using a so-called relay attack.ac. Because the radio frequency field has a very low range (typically less than 10 cm). University of Cambridge has shown that their hardware can successfully execute a relay attack against an ISO 14443A contactless smart card.uk/~gh275/relay. and the leech is a device which fakes a reader to the card as shown in the diagram below. This however is not the case. as a Cambridge University survey described below shows14.Mobile payments 2010 . The ghost is a device which fakes a card to the reader. attacks can be executed from a very long distance. "but URL spoofing is still possible. Application-level measures fail to protect against relay attacks.cl. This however requires quite some skills and is not easy to accomplish." Mulliner told the audience." Relay attacks One of the most mis-understood safety aspects of NFC technology is the relatively short communication distance between the sender and the receiver.
especially at low bandwidths. This signal can be illegally intercepted by a third party and this act is called ‘eavesdropping’.pdf.g. Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems. The ghost receives the message.39 .Recent technical developments and implications The typical communication scenario starts with a message that the reader sends to the ghost. The relay is orthogonal to any higher level security protocols such as those defined in the ISO 7816.Tel Aviv University . location. the attacker causes the reader to (unknowingly) communicate with a genuine card which is far away. A receiver can either be active or passive. and then present the ghost to the reader at payment time. One could also open a secure door using a relay attack on someone else's contactless key15 device. a radio frequency signal is sent from sender to recipient. A sender node must be an active device.org/2005/052.. which 15 http://eprint. In the opposite direction (tag to reader) the communication scenario is reversed. Ziv Kfir and Avishai Wool. The attack described here breaks the assumption that the reader is communicating with a card that is physically close.4 standard [ISO95]. sends the message to the leech using a fast digital communication channel and minimum delay. Using this technique gives the ability to create a relay. the modulation is stronger. fakes the real reader and transmits the message to the real card. In active mode. The distance from which an attacker is able to eaves drop the RF signal depends on a large number of parameters: the quality of the attacker’s equipment. without any data manipulation. RFID and NFC communication encompasses the communication between two tags. To mount such an attack. This third party then becomes the recipient or a co-recipient. as described in the relay attack section.iacr. power of signal emitted by the NFC device and environmental noise. using the two devices (the ghost and the leech) allows the distance between the reader and the real card to be practically unlimited. or repeater between a reader and a card. Eavesdropping is also impacted by the communication mode. An RFID tag which is capable of creating a radio frequency field by itself is called an active device. The leech receives the message. slip the leech into the victim's handbag). one could place a leech device close to the victim smartcard (e. A typical attack is to charge someone else's credit card or electronic wallet for a purchase. Using the relay attack. Furthermore. This opens several possible threats. Eavesdropping For making an NFC-based mobile payment. which acts as a regular card. Because of the short range of this communication mode. A tag which is only capable of receiving an RF-field is called a passive device. otherwise it cannot initiate communication with a receiver. One is a sender and one a receiver. The sender node creates a radio frequency field which the receiver node receives. this third party needs to be physically near to the transaction point if he does not want to rely on complicated technology involving ghosts and leeches.
A passive device. although this is a rather expensive option. Destruction is relatively easy to realise with NFC. which is a way of transferring data that is resistant to interception and tampering. Data destruction Data destruction can be executed by disturbing the signal that the NFC device(s) send(s). can mitigate eaves dropping. RFID readers may contain jammer sensors triggering an alarm when a jammer is detected. Man in the middle attack When two parties A and B want to communicate with each other. It is possible to disturb the signal by jamming certain radio frequencies. Also. Mechanisms that prevent collision of different RFID signals cannot disable such an attack. there is no clearly defined way to prevent such an attack. which does not generate its own RF field is much harder to eavesdrop than an active device. The employment of security cameras and personnel may detect an attack in progress.Mobile payments 2010 . There is no benefit for the disturber however besides the fact that the transaction is made impossible Up till now. Transferring data through a secure channel. Figure 4-3: Schematic representation of a man-in-the-middle attack . a third party might trick A and B in a three party conversation as shown in the diagram below. as jammer equipment cannot be easily concealed within a bag or jacket. Operating such equipment only requires basic electronic engineering skills.40 makes the communication more vulnerable to eavesdropping.
and not A’s. C can eavesdrop the data sent by A. though the standard supports other types of broadcast messaging as well. The insertion will be successful. this omission can be circumnavigated. All in all. which renders the attack futile. the data will be corrupted. this attack is very difficult to execute and vulnerable to early stage discovery by initiating party A. Lack of encryption. these are: — Store-and-forward. in case the answering device needs a very long time to answer. which makes C’s attempts futile. mobile to computer. this means that the text message is sent from the sender phone to an operator. In order to make a successful attempt. C has to disturb the transmission of A to B. recipient B will receive an unreadable and not understandable message. Data insertion Data insertion means that the attacker inserts messages into the data exchange between two devices. A generates an RF field and sends data to B. mobile to landline. Lack of proof of delivery. C is vulnerable to discovery since A might detect disturbance and abandon the transmission. only. to make sure B does not receive the data sent by A. albeit disturbed. C has to make sure that party B receives C’s signal. When the intended recipient’s phone is available for this message to be received. Most SMS messages are mobile-tomobile text messages. 4. If unwanted party C is physically near enough.Recent technical developments and implications Assuming party A uses active mode and B uses passive mode. The attacker could then send his data earlier than the valid receiver. Additionally. So C has to create a second RF field. This is only possible. SMS is sent as clear text only. In case A does not detect the disturbance. however a proof of delivery is not part of the SMS protocol as such. If the two fields are not perfectly aligned. Aligning two RF fields is possible in practice albeit it is very hard. e. functionally. Although disturbing transmission is possible. the battery is flat or the phone has no reach. Oftentimes. before the original device starts with the answer. alhtough this — — . It should be mentioned that most SMS-based mobile payment methods do provide a proof of delivery. if the inserted data can be transmitted.g.6 SMS as a technology for mobile payments Short Message Service (SMS) is a communication protocol allowing for the interchange of short text messages between mobile telephony devices. there is a maximum to the time that an operator holds a message for delivery in case the recipient’s phone is shut off.41 . transmission to B will continue. SMS has three characteristics that are important to consider in its use for a payments application. This causes two RF fields to be active simultaneously. If both data streams overlap. If the attacker C manages to do so it is possible to send a readable message to B and the attack might succeed. the operator sends this message through to the recipient.
Where it can and is used extensively however is simply to transfer initiation messages for a payments process.000 mobile phones are stolen each year18 — Integrity: the information and systems have not been altered or corrupted by outside parties. Heiko Knospe.7 SMS security issues The service level security is important for secure m-commerce applications. process or device. Information Security Group.stm . — Authentication: ensures parties with access to a transaction are not impostors and are trusted. The person initiating the transaction does not need to be the person paying for it. The device can exchange data via a short message service centre (SMSC) by sending and receiving standard SMS messages identified by the International Mobile Subscriber Identity (IMSI) which an attacker cannot forge without breaking GSM/UMTS security. For post-billed SMS services.co. If a mobile device is stolen. The security of the transaction is as secure as the security of the merchant. 700. A secure mobile payment system should have the following security properties17: — Confidentiality: The confidential information must be secured from an unauthorized person. Short Message Service is a most popular data service offered by mobile network operators and most widely used for mobile payments.Mobile payments 2010 .bbc. the network operator and its infrastructure must be trusted for transactions16. By using SMS to initiate or authorize payments the SMS can be then used as the unit of currency itself. especially those involving monetary transactions.42 increases the costs of a single transaction and is not economical if the transferred amounts are small. the thief can abuse this as much as they like. this is an extremely weak point.uk/2/hi/uk_news/1966247. 4. University of London 18 BBC: http://news. 16 Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar – Ali Bhutto Insitute of Science and Technology. For SMS the confidential info is stored at the merchant’s end of the equation. until the account is blocked. There is no end-to-end security. The combination of these three factors makes SMS unsuitable for use in many payment applications. However protection ends in the radio interface. – Computer Fraud & Security – june 2007 17 Secure M-commerce Scarlet Schwiderski – Grosche. Karachi – analysis of mobile payment security measures and different standards. In the UK alone.
The USSD bearer is accessed by calling a number that starts with the asterisk or gate (or hash) characters ‘*’ or ‘#’ and then a combination of numerals. For P2P payments. for instance #09001234# There is no store-and-forward capability that is typical of ‘normal’ short messages. As a consequence. authorization is an issue. USSD is typically used as a ‘trigger’ to invoke independent calling services which don't require the overhead and additional usage costs of a short message service centre (a network element in the mobile telephone network which delivers SMS messages). Response times for interactive USSD based services are generally quicker than those used for SMS. The function that is triggered when sending USSD is network dependent and depends on what kind of services the operator has made available.g. — Authorization: Verify that the user is allowed to make the requested transaction. stock quotes. one can pay by SMS. Availability: system must be accessible for authorized users at any time. communication via USSD is in sessions instead of in discrete intervals. and the battery is not flat. but this requires extra costs. cheaper phone charges while roaming). For SMS based payment systems this aspect is well covered as long as you have reception on your mobile phone. It is generally associated with real-time or instant messaging type phone services. or interactive menu service (e.Recent technical developments and implications Corrupting SMS messages is possible. however this can be functionally solved. The data is not sent encrypted. this is different: the mobile device of the receiver has to meet the two criteria mentioned before.g. Post-billing SMS.43 . security is considerably better on this topic.8 USSD as a technology for mobile payments USSD stands for Unstructured Supplementary Service Data. — 4. albeit not very frequently occurring. sporting results). with PIN-based SMS-payments systems. Also. the sender of a message can be absolutely sure that they are talking to their own operator. Some operators have not activated this possibility. . making eavesdropping and data corruption easier. such as a call-back service (e. USSD is a standard for transmitting information over GSM signalling channels. plus the receiver must have the mobile device switched on for the transaction to be completed (store-and-forward principle) — Non-repudiation: ensures that the user must not deny that (s)he has performed a transaction and must provide proof if such a situation occurs There is no ‘proof of delivery’ incorporated in the SMS protocol. It is mostly used as a method to query the available balance and other similar information in pre-paid GSM services. asterisks and finally the gate or hash character ‘#’. It is a capability of all modern GSM phones.
authentication etc.10 Emerging ecosystem for Point of Sale NFC mobile payments 4. Mobipay in Spain. These trends will provide a positive impetus to the development of mobile payments. In parallel. Handset manufacturer: produces mobile devices that support the use of Secure Elements. The only yet critically important differences will continue to be the size of input (by definition small for a mobile device) and the size of the display (again smaller for a mobile device). 4. Secure Element Issuer: personalizes the chip with the Secure Element. — — — — — . many of which would be settled via payment systems based on the platform. The continuation of these two trends implies that in the near future. Trusted Services Manager: enables the service provider to use the Secure Element. SMS and NFC. at least in terms of functionality. It is also likely that new payment methods will be developed that leverage the capabilities of three payment related technologies on the mobile device: Internet. mobile devices are becoming increasingly like laptop computers in terms of the functionality they offer.1 Stakeholders First the key stakeholders in a Point of Sale NFC mobile payment ecosystem are defined: — Chip manufacturer: creates the smart card chip on which the mobile payment application or Secure Element can reside. Future developments could lead to real time online banking with your mobile phone.10. mPay in Poland and SEP in Bulgaria. which would be an enabler for Point of Sale payments. Mobile Network Operators: provides the infrastructure for communication in remote applications. for example payments. Service provider: offers services for end users.44 USSD is the base of some payment methods such as SharEpay in South Africa.Mobile payments 2010 . there will be little difference between our mobile devices and our laptop computers. It is widely believed that the emerging convergence among Internet and mobile technologies will lead to the emergence of a wireless broadband Internet platform that will allow ubiquitous access and a wide range of new value-added services. Paysa in India.9 Increased broadband and the merging of channels High speed broadband internet is increasingly available on mobile devices. 4.
This is generally the financial institution preferred option for the location of the Secure Element as it gives the financial institutions an option to be mobile network operator independent. On a separate chip or smart card in the phone. Embedding the secure element in the phone itself.Recent technical developments and implications — End users: uses the services offered by service providers with Secure Element enabled mobile devices. It should be noted that in the market today both financial institutions and mobile network operators play the roles of Secure Element issuers. service providers and trusted services manager. This is generally the mobile network operator preferred option for the location of the Secure Element as mobile network operators have control of the UICC. Financial institution centric model: financial institution fulfils the role of the Trusted Services Manager. as listed below and depicted later in a GSMA provided diagram.45 . Collaborative model: financial institution and mobile network operator collaborate to fulfil the role of the Trusted Services Manager. — — — . — — There are four main options for the fulfillment of the Trusted Services Manager.2 Considerations The key debate around ecosystems for Point of Sale NFC payments rests around two core questions: — — Where should the Secure Element for the payment application be located? Which stakeholder fulfils the role of the Trusted Services Manager for management of the payment application and associated services? There are three main options for the location of the Secure Element: — On the universal integrated circuit card (or UICC). This is generally the handset manufacturer preferred option for the location of the Secure Element as it increases the features and competitiveness of a handset and also allows the handset manufacturer to continue to target the end consumer independent of the mobile network operators. 4.10. typically the smartcard that also contains the phone’s subscriber identity module or SIM. — Mobile Network Operator centric model: Mobile network operator fulfils the role of the Trusted Services Manager. Independent entity model: An independent third party fulfils the role of the Trusted Services Manager.
Mobile payments 2010 - 46
Figure 4-4: The four roles for the Trusted Services Manager (TMS)
4.10.3 Proposed ecosystem from the GSMA The main components of the GSMA proposed ecosystem are: — — Secure Element located on the UICC Mobile network operators will use and supply the UICC, banks will pay the mobile network operator for access Banks and retailers will control the applications resident on the UICC and the financial data pertaining to each specific customer through the Trusted Services Manager
The diagram below provides an overview of the ecosystem proposed by the GSMA.
47 - Recent technical developments and implications
Figure 4-5: Overview of the ecosystem proposed by the GSMA
The advantages for use of the UICC to locate the Secure Element in the GSMA model are: — Portable and transferable across devices and networks. Customers can easily transfer their applications and rights from one NFC enabled mobile device to another. Global penetration - The UICC has wide scale global deployment potential – hence it is cost effective to use the UICC as a location for the Secure Element rather than to develop, implement and deploy a new alternative. Dynamic remote over the air management. Mobile network operators already operate secure remote UICC management systems and processes (Over the Air). These can easily be leveraged to manage the whole life cycle of mobile NFC services. Furthermore, services loaded onto the UICC can be immediately blocked, activated or suspended. Longer life cycle typically then devices. The UICC has a longer lifecycle than a mobile device - hence it is more suitable to house the NFC applications on it rather than on the mobile device. This permits the customer to easily transfer and use their mobile NFC services over time. — Standardised: UICC Security is based on global, well-established standards (such as ETSI-SCP, 3GPP, Global Platform) covering application storage, OTA communication, privacy and the entire life cycle management. Consistent approach, by deploying mobile NFC applications in the UICC, the mobile network operator can leverage existing capabilities to provide OTA management and single point of contact device management services to customers. Battery independent: The UICC mobile solution also allows NFC services to work even when the battery is off.
Mobile payments 2010 - 48
Key to the GSMA model is also the role of the Trusted Services Manager. The Trusted Services Manager manages the download and life cycle management of the mobile NFC application on behalf of the financial institutions and provides the single point of contact for the financial institutions to access their customer base through the mobile network operators. The key risks of the GSMA proposed ecosystem are: — Non wide scale acceptance by the financial institutions because of disintermediation from the consumer as depicted in the diagram provided by the GSMA below:
Figure 4-6: Schematic representation of des-intermediation between issuing bank and consumers
It is a closed model restricted to the reach of the mobile network operator and the agreements signed by financial institutions with a specific mobile network operator. It does not provide a widely accepted or easy to use solution for the update of the Secure Element on the UICC. Currently the update of an application on the Secure Element requires a complete over-write of all existing data on the Secure Element. As a comparison for Personal Computers this is equivalent to having to perform a BIOS format and re-write when wanting to upgrade a single application.
Strategies to overcome these limitations will be discussed in future versions of this report.
The advantages and disadvantages as well as contexts of the four technologies are summarized in the table below.
Technology NFC Advantage Quick and easy Disadvantage Lack of availability of NFC enabled phones Use POS only Examples Osaifu Keitai (Japan), Visa PayWave (Guatemala)
49 - Recent technical developments and implications
Advantage Available and understandable to every cell phone user
Disadvantage Expensive, recipient not always available
Use Banking, Remittance
Examples Rabo SMS betalen (Netherlands),
Available to every cell phone user
Not user friendly interface Most phone users worldwide are not able to use it
mPay (Poland), MobiPay (Spain)
Connects to user experience,
Banking, POS (if real time), Remittance
Table 4-1: Mobile technology advantages and disadvantages
the focus remains on mobile money transfer via SMS. In some Asian countries there is a low internet penetration.1 Mobile payments The mobile payment market is very fragmented with many different payment services and payment technologies. In other regions the focus is on POS and mobile ticketing with the notable exception of the USA and Latin America where we see a strong focus on mobile remittance. since the last publication of the report in November 2008 we have seen a strong increase in the number of mobile remittance services across the world and especially in the USA. SMS or mobile internet. which are underserved by the banking industry. Figure 5-1: Geographical dispersion of mobile payment initiatives The mobile payment services offered differ per region. trends and issues from analysis of global pilots and initiatives 5. mobile Point of Sales (POS). However. In Western Europe the situation is different again as . The mobile payment services are based on different techniques like Near Field Communication (NFC). In developing countries.5 Lessons. mobile ticketing. Mobile payment services include mobile parking. a comparatively high mobile adoption and a push by the operators to offer mobile payments like mobile POS and mobile ticketing. and mobile remittance.
it shows that both SMS and NFC are the most used technologies however the number of WAP/Internet pilots has gradually increased over the last 6 months. Examples . Figure 5-2: Geographical dispersion of techniques used In Western Europe mobile payments are mainly offered using SMS.Lessons. Many mobile payment initiatives are still in a pilot stage. Region Service Technology Pilot or commercially available Europe Mobile parking NFC SMS Mobile ticketing NFC SMS Pilot Available Pilot Available Payter (Netherlands) Paybox (Austria) Mobile ticketing London Underground (UK). trends and issues from analysis of global pilots and initiatives the region is generally not under-banked and has a high internet penetration but the uptake of mobile internet is relatively low when compared to Japan. This is especially the case for NFC mobile payment methods. but currently many NFC based mobile payment services are being tested. The next section provides more details of the examples listed below. Of the listed initiatives in chapter 7.51 .
In the Netherlands. Several SMS-based services like are already commercially available. SMS is also used as a technology to pay for public transport tickets or for buying tickets to events. Paybox (Austria) Luup (Gemany. Some NFC pilots only focus on transport (Touch&Travel in Germany). M-Pesa (Kenya) Table 5-1: Geographical dispersion of mobile payment services. Paybox Austria enables consumers to pay for parking with an SMS sent from their mobile phone.Mobile payments 2010 .2 Mobile parking payments For mobile parking payments two technologies are being used: NFC and SMS. .52 Region Service Technology Pilot or commercially available Examples Touch&Travel (Germany).3 Mobile ticketing for public transport or events In Western Europe many pilots have been launched to test NFC in relation to public transport. Norway) Mobipay (Spain) Obopay (US) 5. 5. Paybox (Austria) Mobile POS NFC SMS Mobile remittance Mobile remittance North America Asia Mobile POS Mobile ticketing Mobile remittance Africa Mobile remittance Mobile remittance SMS SMS SMS & Web browser NFC NFC SMS SMS Available Available Available Available NTT Docomo’s Osaifu-Keitai (Japan) G-Cash (Philippines) Wizzit (South Africa). Beep (Netherlands). Consumers can pay for parking by holding their mobile phone over a NFC reader upon entering and upon leaving the garage. technologies with examples Pilot Available Available Available Available Rabo Mobiel (Netherlands). while other NFC pilots also include POS payments in shops (the O2 wallet in the London Underground mobile ticketing trial in the UK). the company Payter offers mobile payments by NFC in Rotterdam. Paybox in Austria offers SMS based mobile parking tickets while NFC based mobile payments are being offered by Payter in the Netherlands.
Therefore. vending machines or petrol station). Rabo Mobiel (2006). The services users have two payment options: using a Paybox account (direct debit on the customer’s account) or via the mobile phone bill (only for Mobilkom and ONE postpaid customers). The Austrian mobile operators Mobilkom Austria and ONE are the owners of Paybox Austria. The Touch&Travel system turns mobile phones into tickets as passengers use their mobile phones to check-in when they get on the train and then to check-out again when they reach their destination. which consists of an Oyster card for paying public transport tickets and a Barclay’s card for Point of Sale payments. ticketing for public transport. Customers can top up their Oyster by touching their handset on Oyster ticket machines in tube stations or at Oyster ticket stops. The OBB mobile ticket can be purchased via SMS or through the Vodafone live! portal. Participants will be able to test travelling on London’s public transport system but also making purchases in retail outlets. Paybox has over 5 million customers and is accepted at 20. All post-paid subscribers are automatically enabled for the service. Just like a normal wallet. 5.000 locations. including payments in a supermarket (C1000). tickets for (music) events. trends and issues from analysis of global pilots and initiatives Touch&Travel is a NFC pilot by Deutsche Bahn and Vodafone to test a new e-ticketing system that simplifies rail travel. Each participant of the trial received a Nokia 6131 NFC-enabled handset. At this moment customers get a monthly statement with all travel data and an attached invoice. Mobilkom has been leveraging Paybox for 3rd party content and mobile services since 2001. TranSys. 200 test users have the opportunity to try out a service that is scheduled to be introduced nationwide for all rail passengers in 2010. the handset will hold various everyday cards.53 . In 2007. Visa Europe. The Rabobank (Netherlands) is the first Western European bank that has launched its own mobile virtual network operator (MVNO) service. Nokia and AEG started a NFC pilot last November called London Underground mobile ticketing. Transport for London. All 500 participants have an O2 wallet. As per mid 2009. and the customer receives a regular statement of journeys made. Barclaycard. Rabo Mobiel conducted an NFC trial of mobile contactless payments and is ran 19 different trials of various sizes. Touch&Travel is not an example of a mobile payment initiative according to the definition used in this report.4 Mobile POS Paybox (Austria) offers mobile POS payments (e. toll ticketing. a school. a . strictly speaking. Other services that are available through Paybox include mobile parking.g. Mobilkom and ONE contract customers can pay for their tickets through their monthly phone bills. and remittance (money transfer). The length of the journey and the ticket price are calculated at the end of the journey. Mobilkom Austria and ONE to offer customers tickets using their mobile phones. Austrian railway operator OBB has teamed up with Paybox Austria. In the UK.Lessons. in this case Oyster and Barclaycard in virtual form and with NFC functionality. All station platforms and bus stops will have 'touch points' installed.
Sony Corporation. and NTT DoCoMo jointly announced QUICpay payment solution for cards with contactless chips. In Japan. Rabobank’s goal is to replace some of today’s cash and debit card payments with one device that could provide all this in a compact package. the credit card issuer. LogicaCMG. called FeliCa. JCB. credited to a Rabobank account. The pilot was an initiative of RFID Platform Nederland. The Suica card is a pre-paid ticket that can also be used in some shops to make purchases. Bitwallet reported that it had issued 9. Currently 500. and cinema ticketing. The Japan Research Institute. KPN and NXP Semiconductors.000 people use the Suica system. NTT DoCoMo formed a joint venture with Sony called FeliCa Networks to develop Sony's contactless card technology. They then entered a PIN code as usual into the POS reader and the transaction was complete. . enabling owners to access multiple applications which are currently available through separate cards. In the Netherlands the NFC Pilot ‘Pay with your mobile phone at C1000’ was conducted in 2007 and 2008. Consumers make purchases by waving their handsets across payment terminals. mobile payments are very advanced. — Suica: In July 2005. Schuitema (C1000). NTT DoCoMo has integrated FeliCa contactless technology into mobile phones. for use in mobile phones. Rabobank.2 million cards in total. Denso Corporation. one hundred customers of the C1000 supermarket in the small town of Molenaarsgraaf could pay for their shopping by means of their mobile phone. Sanwa Bank. with the purchase value appearing on the customer's credit card. Toyota Motor Corporation. The deposit could be deducted at the checkout. AEON Credit Service. The initiators want to use the pilot to achieve an NFC technology breakthrough. DDI Corporation. Examples of the separate cards are: — Edy: Edy is a pre-paid electronic money scheme launched in October 2001 by Bitwallet.Mobile payments 2010 . During 6 months. The rapid development of mobile proximity payments in the Japanese market can be attributed to NTT DoCoMo's role in developing the partnerships and a roadmap necessary to create a workable technical solution and a business model.54 fast food restaurant. and the Bank of Tokyo-Mitsubishi. or donated to charity. Customers could pay for their shopping by simply holding a mobile next to a reader at the checkout. 5 percent of which were enabled for mobile purchases. QUICpay can also be used by FeliCa enabled handsets. Services available to Suica card users were made available on FeliCa enabled handsets from end January 2006. bottle deposit receipts could also be saved on the phone. In addition to the possibility to pay with the mobile phone. vending machines.1 million transactions per month. Through the joint venture.000 member shops and generates 7. Sony Finance International. At the end of March 2005. a joint venture between NTT DoCoMo. The pilot was using a payment solution that utilises the existing PIN system in which the debit card had been replaced by a mobile phone. In October 2003. NTT DoCoMo and East Japan Railway Company agreed to jointly promote JR East's Suica and e-money service. — QUICpay: In July 2004. the international payment brand. It also stated that the Edy card was usable in 20.
55 . Within the first 3 months (March 2007-June 2007) there were 111. and offer an innovative. attract new subscribers.5 million subscribers in Kenya conducting 2 million transactions a day. The rate of early adoption of M-PESA has been very encouraging. Mostly. . Unlike mobile transaction schemes which add a new channel to existing banking services. The mobile operator. Limiting the transaction network to M-PESA account holders and agents allows MPESA to avoid using a clearing system.Lessons. NTT DoComo invested a vast sum in promoting mobile payments. who in turn allocates space on the FeliCa chip for the application. Sending money from the mobile phone can be done through SMS or mobile internet. Through specific M-PESA agents. The common area has been designed for services that require high security such as payment and ticketing. a SMS-based payment service targeting the under-banked. The full commercial launch was initiated in March 2007. According to Obopay. pre-paid mobile subscribers in Kenya on a pilot basis in October 2005. 5. provides the new account holder with a SIM card that enables transactions using an application running in the SIM Tool Kit (STK) environment.5 percent charge for adding money from a debit or credit card. They rolled out their own proprietary point of sales infrastructure and even purchased a bank. 28. and also pay cash in and make cash withdrawals. The `free area' is for applications that do not require a high level of security and an application to FeliCa Networks or to NTT DoCoMo is not necessary. and is managed by FeliCa Networks.5 Mobile money transfer: remittance Around the globe there are numerous initiatives that enable individuals to transfer money to each other via their mobile phones. differentiated service to customers. the service helps mobile operators drive increased messaging and data traffic. trends and issues from analysis of global pilots and initiatives The FeliCa chip installed within the mobile handset comprises a predefined ‘common area' and ‘free area' for storing applications.10 for sending money and a 2. For services to be enabled in this area the service provider needs to make an application to FeliCa Networks.6% of Osaifu Keitai compatible mobile handset owners are using the Osaifu Keitai function. Safaricom and Vodafone launched M-PESA. M-PESA’s services are available only to M-PESA account holders and certified agents. while linking to a bank account is free of charge. The agents operate a float of M-PESA value plus a cash float at each outlet. Obopay charges a fee of USD 0. customers can carry out m-transactions and m-payments. In 2007. In 2009. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service that offers financial services to mobile phone users. M-PESA uses a network of agents. Safaricom. Obopay (US) is a peer-to-peer mobile payment company enabling mobile phone users to send and receive money through their phones via a mobile web browser or SMS.000 registrations and 450 active agent outlets. it is not linked to the clearing system. As of mid 2009. M-PESA had 6. the transfer is conducted by SMS. M-PESA is an alternative solution – it is described and understood by the Kenyan regulators as a mobile payments system.
Business models can be bank-centric (Rabo Mobiel Netherlands). In the Philippines. the bank decided to launch its own mobile virtual network operator (MVNO) service. is the business model that delivers value to all players in the ecosystem. It is possible to use the money stored on these cards in many stores. which are effectively stored value cards. It can for instance design the tariffs to encourage the use of mobile banking services. There is no credit facility per se available on M-PESA.56 Transferring money to M-PESA customers as well as non-M-PESA persons by means of an SMS is the centrepiece of the system. for details see chapter 7 .1 Business models A major driver in the adoption of mobile payment services in general. One example is the Rabobank (Netherlands) that launch transactional mobile banking services in 2003. DoCoMo’s OsaifuKeita). Finding that barriers like unclear costs and a poor user experience were deterring potential mobile banking users. with no minimum balance. Rabo Mobiel. which are typically Safaricom dealers. in the Netherlands in late 2006. but the recipient need not be a subscriber or even a bank account holder. The relatively low maximum balance is presumably an attempt at limiting the opportunity for money laundering. Several different business models are possible. Many mobile phones in the country are funded by pre-paid cards.000 in their M-PESA account. It can fully control the mobile banking offering. independent service provider centric (Obopay US) or collaborative (Mobipay Spain. Bank centric The bank centric approach to mobile banking has been taking by a number of banks. each with uncertain outcomes. and charges are levied on a pay-as-you-go basis.6 Lessons about drivers and barriers 5. mobile operator-centric (Paybox by Mobilkom Austria. 19 Not discussed in this chapter. M-Pesa Kenya). The M-PESA functionality also extends to depositing and withdrawing money at registered M-PESA agent outlets. 5. but may also be other retailers such as petrol stations and supermarkets.6. A user can have up to KES 50.Mobile payments 2010 . the mobile phone-based remittance system is employed by Smart19 and by Globe Telecom who both allow remitters to transmit money by using their beneficiary’s mobile phones. Only Safaricom subscribers can send M-PESA payments. The advantage of this approach is that Rabobank is in charge of the ecosystem.
The large uptake of NTT DoCoMo’s mobile payment service is caused by a number of drivers. NTT DoCoMo has invested a vast sum in promoting mobile payment and they rolled out their own proprietary POS infrastructure. telephone banking. the average mobile user is more likely to be using an advanced mobile network and the up-take of mobile data services is high. In 2007. The Dutch mobile market is very crowded which makes it difficult for any new entrant to reach a large number of mobile phone customers. in Western European countries. These reasons for the slow adoption of mobile banking will also have a negative impact on the adoption of mobile payments. and internet banking meet the needs of most customers in most situations. Mobile-operator centric Mobilkom Austria adopted a mobile-operator centric model which is rather successful in terms of uptake and usage of mobile payment services.5 million customers are using NTT DoCoMo’s mobile phone based contactless credit product. NTT DoCoMo also has an operator centric approach towards mobile banking. including the acquisition of Paybox and the establishment of a bank subsidiary. Recently Mobilkom also introduced Near Field Communication (NFC) as a payment solution for mobile ticketing for public transport. Another element that influences the uptake is country specific: Japan has a high mobile phone penetration that has been outstripping computer penetration for several years. The initial mobile payment technology of Paybox is based on SMS. NTT DoCoMo has a large market share in Japan and can more easily establish a cooperative business model with banks and mobile handset manufacturers. it shows the importance of a major role in the ecosystem and using a technology with a wide user acceptance. However.Lessons. Part of the problem is that many mobile users in the Netherlands — and other Western European countries — have yet to adopt any mobile internet services. trends and issues from analysis of global pilots and initiatives The acquisition of Rabo Mobiel customers is however slow. Some of these drivers of mobile payments cannot be translated to the Western European market. Only 15-20 percent of the Rabo Mobiel customers access mobile banking at least once every three months. SMS is a widely available and well-known mobile service. Also.57 . NTT DoCoMo had about three million mobile wallet users (out of 15 million m-wallet enabled mobile phones) and 1. Urgent banking transactions simply aren’t common enough to persuade a massmarket audience to sign up for and regularly use mobile banking services. The mobile operators control the mobile service value chain and the payment value chain. Independent service provider centric Obopay is a peer-to-peer mobile payment company enabling mobile phone users to send and receive money through their phones via a mobile web browser or SMS. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service . Another disappointment is the relative low number of active mobile banking users. The Austrian operator has put a lot of money and resources into the mobile payments strategy. In 2009. established channels like ATMs.
and the now defunct Mobipay in Spain that was a joint venture by all Spanish mobile operators and 80 percent of the financial institutions. which were estimated to have received USD 27 billion.1.Mobile payments 2010 . Obopay partnered with Verizon Wireless to have its mobile payment applications available and partnered with Citibank to offer mobile banking services to Citibank customers. In a mobile operator centric business model the mobile operators have to deal with a wide range of financial regulatory concepts. Offering international remittance is a specific segment on its own with many problems to be solved. This example is very difficult to translate to Western Europe. Entering the remittance market is not easy. Previously. The United States dominates in outflow remittances. USD 25 billion and USD 17 billion in remittances. mobile phones/mobile wallets in developing countries).1 Collaborative The collaborative model leverages expertise from both telecom and financial sectors and it enables the establishment of a single technology standard for mobile payment services avoiding the fragmentation of multiple technologies and platforms.6. 5.58 that offers financial services to mobile phone users. Other examples include Payez Mobile in France in which banks. The United Nations cited that the number of immigrants worldwide is roughly 200 million. In 2007. Barriers to enter the international remittance industry are high due to the regulatory requirements and the large undertaking to build out the technology infrastructure. sending out USD 42 billion in 2006. respectively. China and Mexico. Mobile banking businesses in developing countries are mainly successful because the countries are under-banked. mobile operators and credit card companies joined forces. This is followed by Saudi Arabia and Switzerland. or approximately 3 percent of the world’s population and this amount is forecast to reach more than 280 million by 2050. developing countries. respectively. Also the challenge is to support money transfer from multiple starting points (such as bank accounts in developed countries) to multiple end points (e. This example is about mobile remittance in under– banked.6. 5. Regulation is challenging due to the complexity in dealing with differing requirements in various countries. with outflow remittances of USD 16 billion and USD 14 billion. Offering mobile remittance services has some potential for countries with immigrants that originate from under-banked countries.2 Remittance The uptake of international remittance services tends to be driven by growth in the immigrant population worldwide as well as the overall health of the global economy. It also includes regulation with regards of the use of agents when dealing with cash-in and cash-out at both ends of the transaction. An example of the collaborative model is M-Pesa in Kenya. the top three inflow remittance countries were India. but also e-money and payment regulation. Collaboration with financial intermediaries or independent service providers with an established international payment infrastructure . such as Anti Money Laundering (AML) and the Combating Finance of Terrorism regulations.g.
Orange France sees a business case taking shape in the form of fees it could charge banks. Past launches of data services like imode and Vodafone Live! showed that customers need to have a choice of a broad range of mobile phones. it is wise to at least use accepted technologies such as SMS. like banks and transport companies. otherwise the uptake of the service is limited. such as from monthly downloads of transit passes to the phones. It is relatively cheap and easy to use. 5. NFC enables multiple contactless applications on mobile phones. may be limited because these transactions don't need mobile networks. Other NFC based services include mobile ticketing.3 Technology The type of technology used is one of the drivers for uptake and usage of mobile payment services. From the mobile operators’ perspective. in particular from transport and payment applications. By offering SMS-based mobile payment services. Another problem to be solved with NFC-enabled phones is that NFC is still in its infancy and only one commercial handset (Nokia 6231) is available. only one NFC- . Short-term benefits. and is not restricted to payment or transport. SMS-based mobile banking will generate only modest mobile data traffic and revenues.g. This would however not be attractive to MNOs that charge flat rates for data services. trends and issues from analysis of global pilots and initiatives could help banks and mobile operators to make the entrance in the international remittance market. offering this service is still only interesting if starting point of the money transfer is in a country with a significant amount of immigrants from underbanked countries. In order to reach as many potential mobile payment customers as possible.6.Lessons. In order to monetise this enabler role. It is also unknown what the maximum mobile internet penetration will be in the next five years. NFC Near Field Communication (NFC) is the technology of choice to develop proximity transactions between mobile phones and contactless readers. Mobile internet is not yet widely adopted in Western Europe compared to e. loyalty and access control services. transit operators.59 . Orange also could earn significant revenue from additional data traffic. SMS SMS is available on all mobile handsets. The SMS capabilities can be used for basic functionalities like bank account enquiries or SMS based payments or ticketing. However mobile operators have to provide the NFC enabled mobile phones. retailers and other service providers for downloads of the applications to the SIM and renting space on the card. mobile operators should find ways to generate revenues from application owners. The NFC business case will be a challenging one for mobile operators. mobile operators and financial institutions can reach customers who don’t have mobile internet yet. However. Japan. Currently.
On the one hand there needs to be a large base of consumers with contactless payment devices to provide justification for merchants to add the capability to their Point of Sale (POS) systems. In addition to delivering value to all players of the ecosystem and accepted technologies used. As mentioned before Orange. The PSD aims at establishing a modern and comprehensive set of rules applicable to all payment services in the European Union. Sagem. mobile payment at the Point of Sale are compelling if it is cheaper. 5. Iceland and Liechtenstein. This would dilute banks revenues on mobile payments at a POS. On the other hand there have to be sufficient merchants accepting contactless payments before consumers choose to adopt the new payment mechanism. efficient and secure as 'national' payments within a participating nations.7 New opportunities in the Payment Services Directive (PSD) The Directive on Payment Services (PSD) provides the legal foundation for the creation of an EU-wide single market for payments. Contactless payment adoption faces the classic chicken and egg problem that any new payment technology faces. mobile operators could ask for a fee for the use of their SIM “real estate”. The PSD also seeks to improve competition by opening up payment markets to new entrants thus fostering greater efficiency and cost-reduction.Mobile payments 2010 . Acceptance by merchants is driven by a large addressable base of customers for the merchants. If mobile phones become a core payment device at POS. . After the formal adoption by the Council and the European Parliament and the publication. This means there should be interoperability across different operators and/or banks. and NEC) are used in pilots. For banks. Acceptance by end-users is based on: easy to use service. The PSD offers opportunities for those involved in mobile payments. Norway. Introducing NFC mobile payments at POS means an additional investment in infrastructure. the provisions of this Directive will need to be implemented by all participating nations by 1 November 2009. more effective or carries less risk than other non-cash payments. other drivers for uptake of mobile payments are the acceptance by the end users (customers) and the acceptance by merchants. public transport operators. and the perception that the service is secure. The target is to make cross-border payments as easy. Paying with a mobile phone should add some benefits to end-users and merchants compared to existing payment methods payments. and a few mobile phones like (Motorola.60 enabled mobile phone is commercially available. At the same time the Directive provides the necessary legal platform for the Single Euro Payments Area (SEPA). sees a business case taking shape in the form of fees it could charge banks. retailers and other service providers.
PSD constitutes an opportunity to become a payment services provider. trends and issues from analysis of global pilots and initiatives The PSD is a European level regulatory framework. 5. implementation and governance are the responsibilities of individual Member States. — 5. distribution or search facilities. does NOT fall . For the latter group. Use of mobile payments to purchase digital goods received on the mobile phone is excluded from the scope of the PSD as long as the party providing the payment application (usually mobile network operator) also adds some intrinsic value to the goods in the form of for example access. one had to obtain a license to become a credit institution (banking license or electronic money institution license).2 Who has to adhere to PSD regulations? The exact definition of a payments institution is important for mobile payment initiatives and mobile network operators. This means that the sale of ring tones. PSD constitutes an additional set of regulations to comply with.Lessons. creation of actual legislation. non-banks that consider taking the opportunity granted to them by PSD to enter the payment services market.61 . The intentions of the PSD can be summarised as follows: — Allow non-banks to offer payment services thereby opening the market up for competition Making market entry for payment institutions subject to license requirements Provide an adequate regulatory framework in which these non banks would operate Currently any payments institution that works at a European scale now needs a regulatory license for every single country. access to directories etc. which was until November 1st 2009 the domain of financial institutions. Under PSD regulation only one license is needed to serve all European areas. — — — The situation before 1 November 2009 was that in order to gain access to payments infrastructure. The PSD seeks to form an intermediate step between those with and without a credit institution license via a relatively easy to obtain payments institution license.7. These licenses are subject to very strict regulations and are hard to obtain. since important groups are excluded from the scope PSD.1 For whom is PSD important? The PSD is important for two groups: — those who are currently perform activities that require a license under the PSD legislation from 1 November 2009 onwards. interpretation of this framework. weather forecasts. the paid delivery of news headlines.7. For the former group.
data. according to DNB. Capital requirements. With this time legally being limited to one day – this source of revenue will become negligible. display of foreign exchange rates before point of acceptance and documented customer receipts and acknowledgements. directors and managers that are of good repute. This rather strict rule will also apply to holders of a full banking license (who also need to comply with PSD). For mobile payments this will be an initial amount of €50. proper internal control mechanisms. it means that the time between a payment order from a consumer to the time that the merchant actually receives his money is not allowed to be more than one day. Users should be allowed to easily repudiate consent and authorisation. So providers do not have to comply with PSD as long as they only function as an intermediary which offers other companies’ products to end consumers. These include proving the existence of sound administrative. where the provider of the payment functionality simply acts as an intermediary for the processing of the payment and no extra services or intrinsic value is added to the goods by this party (distribution is seen as a ‘value add’ in this case). payment institutions will be required to maintain a certain minimum level of capital.100 in fees and approximately 40 man hours for gathering the necessary information. However there will be an exemption to these requirements for small value payments where individual payment transactions must not exceed €30 or there must be a spending limit of €150 or the maximum amount of funds stored on the instrument must not exceed €150 at any time. Consumer legal liability is limited to €150. meaning that the provider of such services does not need a license to continue its business. authentication and IT communication providers are not classified as payment institutions and therefore do not need to comply with the PSD. the excess in liability lies with the provider. According to the Dutch Central Bank (DNB). Payment institutions . Consumer information and protection. these include regulations aimed at achieving consistency around terms and conditions. Fulfilling the ongoing information duty to the central bank will cost approximately 10 hours per year.62 under PSD regulations. The PSD does apply however. For mobile operators that consider setting up a payments service. This license to operate as a ‘payment institution’ is issued by the national banks of Member States. the expected costs for a license are EUR 3.Mobile payments 2010 . risk management and accounting procedures. This concept disables earning interest over the transacted amount in the time between the gathering of the money from the consumer and the pay-out to the merchant. 5. data storage.7.000. Technical providers to payment institutions such as providers of processing. Maximum payment execution time will need to be one day once the PSD is fully in place (31 December 2012).3 To what should these parties adhere? Entities without a banking license currently providing payment services that do fall under the category mentioned above will need to comply with the PSD regulations which can be categorised at a high level into the following: Regulations to obtain a license to operate as a ‘payment institution’.
payment monies must be kept separate from non payment monies and activities. Protection of consumer funds where payment institution also engages in non payment related activities.Lessons. In practice it means that Member States can turn a blind eye to small payments initiatives with a turnover of under three million euro.4 The opportunity for the new Payments Institutions Where payment services are provided via a – in general – 4 party scheme then these schemes should be open to any party complying with the PSD and scheme’s rules subject to adequate risk controls to ensure appropriate requirements in order to ensure integrity and stability of those systems. PSD mandates the Member State to enforce PSD regulations upon the payment initiative. trends and issues from analysis of global pilots and initiatives must provide a suitable period for asking a refund and must debit/credit the customer’s account with a value date equal to the point in time at which the account is booked. should the turnover reach EUR 3 million. 5. .63 .7. Additional remarks: The directive allows Member States to not require a license from Payment Institutions with a turnover of less than €3 million. However. Payment institutions must not charge fees for the closing of accounts.
namely the financial institutions and the mobile network operators. some of these (in no order of priority) are: 6. Financial . The bursting of the dot com bubble put an immediate stop to such plans and thinking.1. and faster and adds more value to the customer if they focus on their individual core business and expertise and partner with other stakeholders for their expertise. For example. This chapter lists just some of the key reasons and some of the emerging trends around cooperation. 6. Fast forward to 2010 and stakeholders have realized that it is more cost effective.1. Both parties have realized the limits of their individual expertise and are now seen to be more willing to partner with each other to gain this expertise.1 Desire to diversify from core businesses The turn of the millennium. financial compliance management and access to a merchant network. Similarly mobile network operators have the experience and billing infrastructure for processing large numbers of relatively small transactions. Thus mobile network operators during this period were making plans to morph into financial institutions and financial institutions were exploring the set up of their own telecommunications networks.6 Stakeholder cooperation and standardisation There are many reasons why cooperation between key stakeholders has been difficult for mobile payments. The resulting reflection within these organisations revealed that while the Internet makes it slightly easier to access the customer by providing another cheaper channel. this is core expertise of financial institutions. the profitable provision of payment functionality from a financial viewpoint requires knowledge and experience in risk management. safer. the last key milestone for the popularity of mobile payments was also a period of corporate strategic thinking and planning that expected the advent of the Internet to lower or destroy the barriers to entry into different industries. 6.1 Why stakeholder cooperation has been hard to achieve One of the commonly cited reasons for the relative lack of success of mobile payments so far has been the absence of productive cooperation between key stakeholders. Also the importance of standardisation in the mobile payment industry to ensure interoperability and rapid growth is discussed and some of the key standardisation initiatives in the market today are described. There have been many reasons for this lack of cooperation.2 Debate over who ‘owns’ the customer One of the still unresolved issues around the cooperation between mobile payment stakeholders is the key question of customer interaction and ownership. the internal and back office processes required to offer the products and services of another vertical industry requires years of learning and experience.
65 . financial institution or mobile network operator. In a cooperative model.1. which would reduce the value of mobile payments for consumers and slow down industry development.1. 6. Mobile network operators are willing to give up the management of the UICC to the Trusted Services Manager who acts as a real estate agent for the SIM. how would interaction related to the mobile payment service be shared? Current pilots are exploring this and looking for a model where the interaction and communication around the financial component of the payment can be maintained by the financial institution and that around the phone. cross and up sell.3 Difficulties around branding in cooperative models Cooperation is slowed and made difficult when each stakeholder is keen to associate and imprint their own brand on the new payment system. 6. The ability to charge flexibly for different types of services and applications and to split revenues between different parties in the value chain is key to the creation of a successful environment for mobile services.4 Debate over the location of the secure element The preferred location of the mobile payment application for the mobile network operator is the UICC or SIM.5 Inability to arrive at a workable revenue sharing model The players of the value chain must agree on basic revenue sharing principles between industries. 6. SIM and network by the mobile network operator. At the time of writing these two bodies were sharing thoughts on cooperation . The presence of multiple brands creates confusion and makes the acceptance of the system difficult with the customer and slows the adoption of the system. to avoid having different industries create different standards. It is critical to mention in closing the positive activities in motion around cooperation between key European regulatory bodies such as the European Payments Council (EPC) and the GSMA. Key to this approach is the role of the Trusted Services Manager. a role created and defined in the context of NFC payments.1. The Trusted Services Manager provides the technical and procedural backbone for stakeholder cooperation and is also best placed to assist in the routing of customer interaction to the right stakeholder. While financial institutions and handset manufacturers are willing to accept and cooperate around this model they do not want to rule out other models such as a second Secure Element on the phone with the payment application or that of the application being built into the phone independent of the UICC.Stakeholder cooperation and standardisation institutions and mobile network operators are both keen to maintain the contact and interaction with the customer for purposes of retention. Current pilots are addressing this by creating a new brand for the payment system and using existing brands of financial institutions and mobile network operators around the individual interactions of these organisations with the customer.
2. severely limiting the growth of e-invoicing and the potential saving of up to 238 billion Euros. Without mobile payment standards. cumulative over 2007 . 6.66 and were shortly expected to release a first paper on how the organisations represented by the two bodies could cooperate around NFC Point of Sale payments in particular.1 Importance of developing mobile payment standards Without the creation and usage of standards for mobile payments the industry risks the development of non-interoperable islands of pilots and solutions. operational and governance protocols. not specific to any operator or payment scheme.201120. interoperability will become 20 http://europa. Creation of such islands will invariably lead to slower customer and merchant adoption and the survival of inefficient solutions with higher end user costs. companies are less likely to invest in mobile payment platforms because they would not be able to reach a broad enough market to make it viable. The SEPA is expected to result in a total saving of €123 billion the European Union. Similarly mobile payment pilots are being launched within Europe and around the world using proprietary messaging. The vision of SEPA is to lower the cost of payments across Europe and achieve optimal market driven interoperability through the creation and use of standards for common payment products. infrastructure. ensure interoperability across platforms and services. Another example is found in the world of electronic invoicing where various industry groups and solution providers have developed offerings using own proprietary specifications which are incompatible with each other. without the use of common Europe wide standards.2 Standardisation 6. In Europe within the financial domain payment solutions have been created in the past within geographic islands. Needless to say continued cooperation between the stakeholders will be critical to the development of mobile payments.eu/rapid/pressReleasesAction.do?reference=MEMO/08/52&format=HTML&aged=0& language=EN&guiLanguage=en . As these pilots succeed and continue to develop into live applications. Recently the European Commission (EC) through the European Central Bank (ECB) and subsequently the European Payments Council (EPC) have been implementing the vision of the Single European Payments Area (SEPA). In the case of direct debit payments as an example this has led to a wide range of costs per transaction per European country and difficult (costly) to no interoperability for the consumer across countries.Mobile payments 2010 . Open standards. and are critical for ensuring widespread access to mobile payment services. An example from the financial domain can help to clarify this further.
67 . information technology companies and content and service providers. There are 52 mobile operators with 1. The GSMA started lobbying for this solution under the project name ‘Pay-Buy-Mobile’ The Pay-Buy-Mobile initiative supports the use of the Single Wire Protocol. to link the UICC contained within the mobile handset with the phone's embedded NFC chip. which was proposed to ETSI as a standard in October 2007 and ratified in February 2008. A number of key handset manufacturers including Nokia.2. as a standardisation initiative with the goal of developing an interoperable mobile payment infrastructure and potentially a European clearing house for mobile phone payments in as many as 20 European countries. The fact that the whole value chain is represented in OMA marks a . such as credit and debit payments. The GSMA is supportive of the UICC solution. The NFC chip can communicate with existing contactless payment systems to deliver a wide range of services. device and network suppliers. the mobile payment application is located on the smart card provided by the mobile network operator. Simpay has unfortunately a notable failed attempt at multi-national mobile network operator standardisation and was closed down in the middle of 2005. GSMA and EPC have started a formal relation in 2008 with regard to mobile payments.e. 6. Motorola and Samsung have joined the GSMA ‘Pay-Buy-Mobile’ initiative and have given support to the payment application residing on the UICC. Open Mobile Alliance (OMA) OMA was formed in June 2002 by nearly 200 companies including the major mobile operators. The time to act in developing standards for the mobile payments industry is now while live implementations are still few and far between. GSMA The GSM Association (GSMA) is a global trade association representing 700 GSM mobile phone operators which serve 82% of the world’s mobile phone users. Telefonica and Orange. i.Stakeholder cooperation and standardisation more critical and more costly. T-Mobile. The various combinations possible will be described in section 8 of this report.7 billion customers participating in the initiative. A key discussion in the area of mobile payment standardisation is the location of the mobile payment application within the mobile device for secure Point of Sale NFC payments.2 Standardisation initiatives Simpay Simpay was founded by the mobile operators Vodafone.
Mobey Forum The mission of the Mobey Forum is to facilitate banks to offer mobile financial services through the exchange of information. The Open Mobile Alliance (OMA) has established the M-Commerce and Charging working group (MCC) that is also working on mobile paymentrelated issues. DECT. ETSI announced the completion of Europe’s NFC standard. The Mobey Forum membership consists of a number of large banks. Easy-to-use and fast-to-use services that offer value for money are the key success factors to a wide-scale customer acceptance in the mobile financial service area. — — — . Banks manage the authentication in their banking and payment services. Norway and Switzerland) secretariat. operators and terminal manufacturers have to be independent from each other. Mobey Forum first stated its requirements for mobile financial services in its Preferred Payment Architecture 1. as well as standards relating to telecom.1 document. technology vendors. networking and interaction with the industry. published in 2001. electronics and broadcasting. While its prime objective is to provide a forum for the industry. based on the principles provided by the GSMA. with different standards and specifications bodies representing different mobile technologies. it also collaborates with other organisations through various partnership projects. TETRA etc. Iceland. Several banks are already entering mobile related services and creating solutions based on some of the work done by Mobey Forum. working independently. The European Telecommunications Standards Institute (ETSI) has produced both wireless and wired standards (e. broadcasting and information technology. ETSI is officially recognized by the European Commission and the EFTA (European Free Trade Association. which consists of Liechtenstein. Rather than keeping the traditional approach of organizing activities around 'technology silos'. OMA is aiming to consolidate into one organisation with all specification activities in the service enabler space. In February 2008. ETSI develops standards and other technical documentation for telecommunications. payment processors and mobile network operators.g. Open and non-proprietary standards are to be supported.68 change in the way specifications for mobile services are created. GSM.Mobile payments 2010 . Key tenets of this document were: — Service provisioning by banks. The main focus is on the development of sustainable business model alternatives.). European Telecommunication Standard Institute (ETSI) Since its creation in 1988. The MCC currently has liaisons established with Mobey Forum..
Ericsson. Formed in 2004. Encourage the development of products using NFC Forum specifications. Works to ensure that products claiming NFC capabilities comply with NFC Forum specifications.2 Crypto SignText implementation in the WAP browser stack. The goals of NFC forum are to: — Develop standards-based Near Field Communication specifications that define a modular architecture and interoperability parameters for NFC devices and protocols.69 . — — — . mobile devices. Commerzbank.Stakeholder cooperation and standardisation MoSign The MoSign project (short for Mobile Signature) initiated by the companies Deutsche Bank. To generate a mobile signature the user inserted a Smart card into a card slot. Sema Group. Educates consumers and enterprises globally about NFC. Encourages the use of NFC Forum specifications. NFC Forum The Near Field Communication Forum was formed to advance the use of Near Field Communication technology by developing specifications. applications developers. ensuring interoperability among devices and services. The digital keys were stored on the Smart card and the signing application was based on the WAP 1. and educating the market about NFC technology.Deutsche Bank. Educate consumers and enterprises about NFC. Manufacturers. the Forum now has over 130 members. — — — To meet these goals. Work to ensure that products claiming NFC capabilities comply with NFC Forum specifications. Materna. and PCs. Dresdner Bank and Hypovereinsbank announced that they would use the findings from the MoSign project and would develop it into a single standard for electronic signatures used in conjunction with mobile devices and financial services. the NFC Forum: — Develops standards-based specifications that define NFC device architecture and protocols for interoperability. In March 2001. four German banks . Microsoft. work together to promote the use of NFC technology in consumer electronics. Siemens and TC TrustCenter has plans to demonstrate the deployment of electronic signatures using a ‘mobile signing device’. A prototype mobile signing device comprised a Siemens IC35 organizer with an integrated WAP browser and a Smart card reader. financial services institutions.
maintain and enhance the EMV Integrated Circuit Card Specifications for Payment Systems. on an NFC-enabled mobile device. maintain and enhance the EMV Integrated Circuit Card Specifications to ensure interoperability and acceptance of payment system integrated circuit cards on a worldwide basis. In this section it has been proposed that stakeholder cooperation and standardisation are essential to the success of mobile payments. was formed in February 1999 by Europay International.70 StoLPaN StoLPaN is an abbreviation for Store Logistics and Payments on NFC. StoLPaN calls itself the NFC mobile services standards consortium. For consumers. The reasons why stakeholder cooperation has been difficult to achieve so far have been explored and the current status of cooperation has been examined. Recognising that important standardisation work has already been undertaken within the industry. EMVCo intends to bridge the gap between the Near Field Communication (NFC) technical standards. The secondary objective is to demonstrate the use of the methodology in the high street. EMVCo's primary role is to manage. In the next section potential risks for the breakthrough of mobile payments are discussed. irrespective of the handset type or manufacturer. These requirements will include a personalisation infrastructure for payment applications and approval processes for mobile devices supporting contactless proximity payments. A common methodology will help to reduce the cost of launching new NFC applications by removing the need to develop. such as payment.Mobile payments 2010 . the Mobile Payment Forum (MPF) ecosystem documents and the future EMV contactless proximity payment specifications when determining the need for specification requirements related to mobile contactless proximity payment applications. MasterCard International and Visa International to manage. EMVCo EMVCo LLC. certify and manage multiple versions of the same application. . and the support infrastructure used. the implementation of a uniform platform will help create a consistent and convenient user experience across all the NFC services on their mobile handsets. Also some of the mobile payment standardisation initiatives around the world have been described. ticketing. These testing processes ensure that a single terminal and card approval process is developed at a level that will allow cross payment system interoperability through compliance with the EMV specifications. access and loyalty. EMVCo is also responsible for type approval processes for terminal compliance testing and Common Core Definitions (CCD) and Common Payment Application (CPA) card compliance testing. StoLPaN’s primary goal is to define a transparent. uniform methodology for managing multiple services.
mobile payments and e-invoicing industry. wherever you are. www.THE PAYPERS KEEPS YOU UP-TO-DATE ON GLOBAL DEVELOPMENTS IN MOBILE PAYMENTS The Paypers The Paypers is the leading independent source of news and analysis for professionals in the global payment community. Specifically designed to utilize the features and navigation of the iPhone™. mobile ticketing. this application syncs and downloads the latest global payments’ news directly to the device. The Mobile Payments Update comprises several feature articles as well as short items with news from the previous fortnight. with a special focus on the online payment. The Paypers on your iPhone! The Paypers is proud to offer our global readers the possibility to read the latest mobile payments news on the iPhone™ The Paypers iPhone™ application allows you to enjoy The Paypers on your iPhone™. Their products are created by payment professionals and cover all significant developments in cards and payments. and mobile banking services. . online banking.thepaypers. m-commerce. The newsletter covers all the developments in the global market for mobile payments.com Mobile Payments Update The Mobile Payments Update is created jointly by The Paypers and Telecompaper – their counterpart for the telecom industry. globally.
Part 2 Market overview .
Type of service Mobile ticketing Mobile parking Mobile remittance Mobile POS Type of technology SMS WAP/Internet NFC USSD Voice Type of domain M-Payment M-Order M-Banking M-Delivery M-Contract Table 0-1: Classification table of initiatives 21 Please contact us if your initiative is not (or erroneously) listed and provide us with the (correct) data as included in our listing to be included in a next edition. In the table below we have listed the available options. Per initiative we will also give information (if available) on cost for usage. secure element. Per initiative we will give a short description. . There clearly is an accelaration in growth of the number of pilot and initiatives worldwide.7 Mobile payment services and pilots We have identified and listed more than 150 initiatives and pilots worldwide and are most likely not complete as new initiatives and pilots are announced almost on weekly basis21. technology used. information on type of service. 180 160 Number of mobile initiatives 140 120 100 80 60 40 20 0 03-2008 04-2008 05-2008 06-2008 07-2008 08-2008 09-2008 10-2008 11-2008 12-2008 01-2009 02-2009 Europe Latin America Australia North America Asia Af rica Figure 7-1: Accelarating growth of the number mobile payment pilots and initiatives worldwide. partners. and the type of domain.
Mobile Axept Poland .Ping Czech Republic .Rabo SMS betalen Norway – Telenor Norway .12Pay Hungary – MobilFizetés Italy – PosteMobile Netherlands – Beep! Mobile Tickets Netherlands .Banamex SMS Banking Spain .T-Mobile Streetgiggs Germany – Touch&Travel Germany .Presto Park&Go Spain .MoBank Europe – Atlas Interactive SMS billing North America Canada – Everyman Cinema Club Mobile Ticketing Canada – RBC Mobex Canada – Zoompass US – America First Credit Union US – Arvest Mobile Banking US – BankCorp South.MB Phone Romania – ING – MasterCard trial Romania .Banco Popular Español Swizerland .NFC Telefónica Spain .Epay24 UK – AvantixMetro UK – Mobile theatre ticketing service UK – Monilink UK – Payforit UK – RingGo Mobile UK – Trinity Mobile UK .Czech Telefonica O2 Estonia – Cinemon Cinemas Ticketing France .Mobile payments 2010 . FirstBank.Good.Ping.bee Spain – Mobipay Spain .74 The following initiatives are listed: Europe Austria – Paybox Belgium – M-Banxafe Belgium – Proximus M-Pay Belgium – Proximus SMS Belgium .MPay Wallet Portugal .Disneyland Paris NRC trial France – Payez Mobile France – TreiZen France .PostFinance SMS Banking Swizerland .Tag Pay Germany – MobilZahlen Germany – NetBank Germany – RMV mobile ticketing Germany – StarMoney Handy Germany . Region’s Finance. SunTrust Bank US – Bank of America Bank the way you live US – Mobiqa Venue Ticketing US – Mocapay US – Obopay US – Payment BuyVoice US – PayPal Mobile US – P2P Cash US – Synovus US – Wachovia Mobile US – Fargo Mobile .Rabo Mobiel: mobile banking & NFC Netherlands .
Mobile payment services and pilots US – Bank of Stockton US – Boku US – Citibank Mobile Banking US – Eficash US – FirstBank’s Mobile Banking Service US – Huntington Mobile Banking Service US – IBC Bank US – m-Via US US – Commerce Bank mobile banking US – SizzleMoney US – Zong US – Eagle Eye Vouchering US – Chase Mobile US –Zala Latin America Argentina – Atlas Interactive Mobile Billing Argentina – Banco Francès Mobile Banking Argentina – Banco Galicia Mobile Banking Argentina – Banco Río Brazil – M-Cash Brazil – Oi Pago Brazil .75 .Diemo Middle East and Asia Afghanistan – M-Paisa Bahrain – Smart MTC Bangladesh – SSL Wireless Cambodia – Wing Money China – EasiRemit China – UMPay China – Ali M-Pay India – mChek India – Obopay India India – Oxicash SmsPay India – State Bank of India Mobile Banking India – Pay Anyone India – Citi NFC trial Bangalore India – Citibank M-Banking India India – PayMate India Japan – FeliCa Mobile Japan – KDDI au’s Osaifu Keitai Japan – Shinginko Mongolia – XacBank Mobile Banking Pakistan – Mobilink Genie Philippines – G-Cash Philippines – Smart Money Saudi Arabia – Smart Bank Service Singapore – EZ-link Singapore – SingTel Singapore – M1 Mobile Payments South Korea – BankOn South Korea – K-Merce South Korea – Moneta South Korea – Tesco Visa Wave South Korea – KTF Ubitouch Mobile Banking Taiwan – M-Ticketing Kaohsiung Thailand – Advanced Mpay Thailand – TMB Mobile Banking Thailand – Kasikornbank Visa trial Turkey – Bankararasi Kart Merkezi .Samba 38 Guatemala – Visa Pay Wave Peru .Pago Movil Venezuela .
76 Japan – S!Felica Kuwait – Viva M-Pay Malaysia – DiGi Remit Malaysia – Mobile Visa Wave Payment Malaysia – One Smart PayPass Malaysia – Maxis FastTap Turkey – Turkcell UAE – Dubai Bank Mobile Banking UAE – Du and Dubai First NFC trial UAE – Standard Chartered Mobile Banking UAE – Mashreq Paymate Banking Australia Australia – Mobile Queensland Australia – Telstra. Mobile remittance. NAB. tickets for (music events). vending machines.com Uganda . Mobile parking. remittance (money transfer) Mobile ticketing.Cellphone Banking Absa Sudan Saraf Mobile Zambia .g.Orange Money Kenya – Eazy 24.paybox. gas station). online shoppin. Visa Africa Cameroon Mobile Money Ghana .Zain M-Wallet Sierra Leone .7 Kenya .CelPay Zimbabwe – Mukuru.Cooperative Bank of Kenya mobile banking Kenya – M-PESA Kenya .txtNpay Ivory Coast .MTN MobileMoney Worldwide – Bank-a-billion 7.1 Europe Paybox Austria www.E-Fulusi Uganda Uganda .Standard Chartered M-Banking Kenya . toll ticketing.at – Austria Short description Paybox offers mobile parking (via SMS). Mobile POS Type of service .Mobile payments 2010 .Mi-Pay Sierra Leone South Africa – Cell Pay Point South Africa – MTN Banking Table 7-2: Listed mobile payment initiatives per geographical region South Africa – POCit South Africa – SWAP Mobile South Africa – Wizzit South Africa . ticketing for public transport (via WAP or SMS). mobile POS (e.
NFC Mobile payment. online shops. large client base. . combination of voice call and Paybox PIN EUR 19 subscription fee per year MNO: ONE and Mobilkom .25 including VAT to the customer and EUR 0. casinos. Type of service Type of technology Domain Secured through Cost for usage Mobile Banking SMS Mobile payment SIM There are no subscription or connection charges: each transaction is billed at EUR 0. Costs for checking the account balance or transfers are also EUR 0.html . he keys a payment request into his mobile telephone. ÖBB Railways. The amount of the transaction is charged to the Proximus bill.25 per request. All post-paid subscribers are automatically enabled for the service. M-banxafe www. SMS confirmation. Cost for usage Partners Additional information Potential One of the bigger mobile payment players. check the account balance and check bank transactions. Once a potential user signs up. retail shops. Business customers use paybox for corporate services.be/nl/postpaid_banxafe. Merchants: lottery. the cost of the product or service is deducted from the bank account. Activating the service requires a ‘3G’ SIM card from Gemalto and a trip to the ATM to green light it. Nokia Austrian mobile operators Mobilkom Austria and One are the owners of Paybox Austria. cigarette vending machines.baseonline. The payee receives payment details by SMS and accepts them using a PIN code. Mobile order Paybox PIN per SMS.77 .49 excluding VAT to the merchant. Technology: NXP Semiconductors.Mobile payment services and pilots Type of technology Domain Secured through SMS. Wiener Linien.Belgium Short description Banking transactions: payments. Subscription fee is a hurdle for diffusion.
supports the M-Pay system Customers who want to buy a ringtone.Mobile payments 2010 .proximus. Financial institution: Banksys. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential .Belgium Short description Proximus M-Pay is a mobile payment system in Belgium for buying digital products online . For the low-value purchase segment. The costs to the merchant are usually very high when using this method.be/nl/Mpay/index.via mobile and internet. The purchases via one-click payment will be stated in the monthly bill of the Proximus subscribers. music. The service is quite expensive and uses a two-sided billing system: fees are levied to both payer and payee.78 Partners MNO: BASE. Mobile POS WAP M – Ordering A secured page on the website Free of charge Mobiel Operator: Proximus / Bango. The purchases by prepaid customers will be deducted from their calling credit. M-banxafe therefore works for debit. billing via the MNO is a viable way to increase conversion. Additional information Potential Proximus M-Pay http://customer. Customers can make purchases of up to EUR 10. Mobistar and Proximus. Merchants: (online) merchants that join Pay2me This service is accessible to anyone having a Bancontact/Mister Cash bank card and a GSM operating on one of the three Belgian mobile telephone networks.html . can now do so by using the Proximus M-Pay payment system. videos or digital content from the Vodafone live! portal. The technology used (WAP) excludes a large portion of the target group. Technology: Gemalto. credit or top-up transactions. whereas other payment methods are offered at no charge to the payer.
which acts as proof of payment. As a promotion it's offering the first SMS ticket for free.pingping. which is cheaper than the EUR 1.proximus. In the project with Accor Services.be/en/sms_Ticketing/index. Belgacom has partnered with Belgium food retailer Delhaize. Ping.50 paid for tickets on board the tram. Within a few seconds they receive an SMS with confirmation of their ticket. In order to pilot the NFC service which was added to the m-payments service.20 for the fare plus EUR 0. M-Delivery.be – Belgium Short description Belgian MNO Belgacom lauched a mobile payments trial based on NFC-technology in Belgium in March 2009. For buying a transport ticket. provider of service vouchers to companies Accor Services and Coca-Cola. Domain Secured through Cost for usage Potential The ability to purchase a ticket while on the bus opens up the possibility of abuse by fare dodgers who can buy a ticket when inspectors enter the bus. It will otherwise cost EUR 1.Ping www. the EUR 0. M-Ordering. M-Payment None. reload can be done via buying credit or upload via an ATM (PIN code). who typically charge 25-35% of the transacted amount as a fee for collecting the money.Belgium Short description SMS ticketing for the public transport system De Lijn in Antwerp and Ghent.Mobile payment services and pilots Proximus SMS-Pay http://customer. Also. 500 Belgacom .15 per SMS will probably not cover the costs for retrieving the money from MNOs.html . Partners Additional information De Lijn For SMS ticketing with the mobile phone. Proximus M-Pay needs to be activated.79 . Type of service Type of technology Mobile ticketing Users send an SMS to a short code before getting on the bus or tram.15 for the SMS. no PIN is required. The costs of the ticket will be deducted from the call credit or will be charged on the mobile phone bill.
This will enable them to make contactless payments using electronic Ticket Restaurants meal tickets stored in their Ping. Users will be able to top up their e-purse and transit application as well as buy new bus tickets directly from their NFC phone. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M – Payment PIN None MNO: Belgacom. running from March – December 2009. Coca-Cola.html . At present. trial participants in Pilsen will use their NFC phones to purchase goods at participating retail shops as well as buy tickets for entertainment areas. the commercialisation of Electronic Ticket Restaurants is not possible in Belgium due to the lack of guidelines which regulate their use.80 employees have been given NFC tags which will be linked to their mobile phone numbers. On top of being able to pay for transport rides. Retailers: Delahize. Type of service Type of technology Domain Secured through Mobile ticketing. The NFC transit application will be available for download through the Telefonica O2 network.cz. M – Delivery PIN . on top of using the city website. Mobile POS NFC M – Payment.Ping accounts at restaurants equipped with contactless readers.o2. Technology: Accor Services Additional information Czech Telefonica O2 www.com/osobni/en/home/index.Czech Republic Short description Czech operator Telefonica O2 and the transport service provider from the Czech city Pilsen participate in an NFC mobile payments trial.Mobile payments 2010 .
Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing SMS M-Delivery None No charge to the consumer Cinamon Cinemas. A cinema ticket is then generated and delivered directly to the customer's mobile phone in the form of an SMS.Estonia. Vista Entertainment Solution Customers can go straight to the usher point in the cinema. Mobiqa. Cinamon's mobi-ticket contains a unique 2D barcode as well as information about when the film starts.ee . The actual purchase is made online. which might cause problems for the cinema owner. Potential The initiative is a win-win for both recipient and issuer of the ticket. Lithuania Short description Cinamon Cinemas customers can now buy tickets on the company's website and opt for mobile ticket delivery. . the balance of the transit e-purse and the last 4 transactions. when two people end up having the same barcode for the same cinema seat. as the mobile phone has a permanent share of pocket.Mobile payment services and pilots Cost for usage Partners Additional information Free during pilot MNO: Telefonica O2. delivery is via SMS. Since the method is based on SMS. the travel history. streamlining entry.cinamon. The issuer of the ticket does not need to print the actual ticket. The recipient is less inclined to forget his/her ticket. The barcoded message is then scanned at entrance. Latvia.81 . Technology: NXP (MiFare) The mobile wallet displays the available bus tickets. the SMS containing the 2D barcode can easily be forwarded. Cinamon Cinemas Ticketing www. the customer's seats and what screen the film will be shown on. probably saving costs outweighing the extra costs of sending an SMS.
. CIC. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment SIM Free during trial Banks: BNP Paribas.000 for contactless readers. Type of service Type of technology Domain Secured through Cost for usage Partners Disneyland Paris. Credit Mutuel.payezmobile. Participants will be using a Sagem My700x Contactless NFC phone offered by mobile operator NRJ Mobile.Mobile payments 2010 . Developed in partnership with French financial services providers Credit Mutuel and CIC. Payments will be charged directly to the user's Crédit Mutuel or CIC bank card. The testers' number is expected to reach 100 for NFC phones and 1. Groupe Caisse d’Epargne. The initiative is aimed at Disneyland Paris annual pass holders who are customers of Credit Mutuel and CIC and who have a valid bank card as well as an account at a Paris-based branch.com – France Short description Six major French banks as well as four French mobile operators joined forces in cooperation with MasterCard WorldWide and Visa Europe to launch a large scale field trial to test a mobile contactless payment service. NRJ Mobile Mobile POS NFC Mobile Payments Payez Mobile www. Crédit Mutuel. CIC.82 Disneyland Paris NFC trial France Short description Disneyland Paris plans to roll out an NFC and contactless card payments pilot in October 2009. which is owned by Credit Mutuel CIC. for mobile POS and ticketing. the trial will include shops and restaurants in Disneyland Paris area.
the business case for NFC-based POS payments is far from positive. Tag Pay www. the clients’ phone rings. Ingenico. Pole-Tes and Sagem Monetel. The technology used for authorisation is dubbed NSDT. Visa Europe Technology: Gemalto. If the transaction is approved. Type of service Type of technology Domain Mobile POS WAP/Internet M – Payment . Additional information The Payez mobile service is started November 2007 and it includes 1. The client ‘signs’ the transaction with his mobile phone by placing the phone in the terminal. The amount is credited from the consumers’ pre-paid account. Africa.000 customers and 200 sales outlets located in the cities of Caen and Strasbourg. and the parties involved have not managed to solve that issue. NJR Mobile and SFR. The consumer (payer) enters his mobile phone number and secret PIN.tagnpay. In a few seconds. money transfers. LCC. It is however the first pilot to achieve interoperability between different MNOs and banks. ATM cash withdrawals and budget or savings management.com – France. MNOs: Bouygues. Société Générale. For a pilot however. The payment procedure works as follows: the merchant enters the amount due on a special Tag Pay terminal. this is easier than for a full-scale commercial roll out.83 . Orange. Potential A project that manages to align a whole plethora of banks and MNOs must have potential. Oberthur. Also. The service also intends to check for interoperability. Inside Contactless. a message appears on the terminal and on them mobile phone.Mobile payment services and pilots La Banque Postale. India Short description Tag’n Pay is a wallet application and can be used for retail transactions at the point of sale. Payez Mobile was previously known as Pegasus. Cards: MasterCard WorldWide.
Zambia. encrypted information is embedded in an audio one-time password (OTP) that is sent to the payment server through your phone’s audio channel. The service is already being piloted in Kenya. Augsburg.84 Secured through Cost for usage 4 – digit PIN and one-time password (OTP) Free of charge during pilot stage – fees will be brought in place in case of roll out. Type of service Type of technology Domain Secured through Cost for usage Mobile parking IVR M-Payment. South Africa. India.Mobile payments 2010 . username/password to change details online EUR 0. Lübeck. Tagittude Each time the consumer makes a transaction.de – Germany Short description Mobilzahlen Handyparken is a German service. Mobilzahlen then sends a letter to the address asking for the bank account number and a signature to authorise Mobilzahlen to set up direct debit.11 – EUR 0. Users can subscribe to the service by registering their mobile phone number and the license plate(s) of their car(s) and postal address with Mobilzahlen. which aims at people seeking more convenience in purchasing their parking ticket. The user pays per minute. Malians in France can pre-pay purchases at specified stores in Mali. Neustadt. making them useless if intercepted and replayed. which are retrieved and paid for using the mobile phone of the intended recipient. Drivers can use their mobile phones to pay for their parking tickets in the German cities of Cologne.19 per transaction . Tagattitude teamed up with Telemedia Group and LAM to offer TagPay in Mali. Partners Additional information MobilZahlen www. OTPs are only valid for 1 transaction and have a very short life span. Hamburg. Celle and Friedberg.mobilzahlen. Users can purchase parking tickets by calling a toll-free number. Congo. Through TagPay. and the Democratic Republic of Congo. All transactions are confirmed by text message. M-Order None. Clients can require a pin code for all payments for additional protection.
Mobile remittance SMS M-Payment Mobile number plus PIN. MPay Germany Short description Mobile payment service for online purchases as an alternative to online payment services like PayPal or Firstgate's Click&Buy. but confronts him with the necessary red tape. Not disclosed yet MNO: Vodafone. Type of service Type of technology Domain Secured through Cost for usage Partners .Mobile payment services and pilots Partners Additional information Potential Community parkings in participating cities The service fulfills a need of the parking consumer. he can start his parking ticket the moment he parks and stop it the moment he takes off again. MobilZahlen is a cheap. receives an SMS to approve the order and the money is automatically transferred from their account to the account of the seller. but with large German cities making the service available. O2 Technology: Paybox Additional information The service is based on automatic withdrawals from bank accounts and SMS payments. The customer buys something online or via a mobile portal. convenient service with a lot of potential. enters her/his phone number. Mobilzahlen allows users to pay the parking fee per minute. as the MobilZahlen account is connected to a bank account.85 . Instead of the user having to predict the amount of time he wants to park beforehand. A similar service is the UK fails to take off. This method saves the consumer the trouble of funding a new wallet. The subscription procedure however is quite complicated.
transfer money. which checks the validity of the ticket.enabled mobile phone. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking SMS and WAP/Internet M-Payment Password and TAN codes Free of charge Sevenal.netbank.de. RMV introduced its mobile ticketing scheme in 2006 and is one of the pioneers in this area. Each transaction requires a transaction authentication number (TAN) for authentication and an additional safety code is required on login in order to protect the account against fraud. users can view their account turnover. Other European banks are currently using the platform for their mobile banking portal. Type of service Type of technology Mobile ticketing NFC . The main target of this enhanced ticketing solution is to enable customers to purchase mobile tickets even more spontaneously and easily. At mobil.86 NetBank Germany Short description The portal is based on Sevenval Mobile Platform and offers a simple interface plus online banking features for all web-enabled mobile devices. Netbank The service was launched in October 2008 RMV mobile ticketing trial Germany Short description NFC field trial for mobile ticketing for public transport in the region of Frankfurt am Main. set up standing orders and much more.Mobile payments 2010 . The ticket will now be stored in the embedded secure element of the NFC. and can be inspected just by holding the device close to the inspector’s reading device.
Additional information The scheme was one of the first to introduce NFC-enabled services. Initially.0 Handy software. traffiQ and the traffic association Frankfurt (RMV). After a four months Mobile banking WAP M-Payment Partners . Also ticket inspectors need to carry specially developed devices to check the validity of tickets. this pilot comes too soon.Mobile payment services and pilots Domain Secured through Cost for usage Partners M-Order. Type of service Type of technology Domain Secured through Cost for usage Starmoney Handy's mobile banking service can be used after downloading the StarMoney Mobile 2. This pilot is far ahead of its time. Nokia and T-Systems partner with independent mobile retailer SMS Michel Communication to market NFC-enabled mobile phones. the service is available through Star Finanz and Kreissparkasse Düsseldorf building society. The market they aim for (travellers) is well-picked.87 . which includes unlimited free phone calls to family and colleagues. Potential StarMoney Handy www. The fee is EUR 6. M-Payment Embedded Free during trial The partners for this project are Nokia. It takes deep pockets to continue a service like this with so little prospect of wide-spread adoption. Estimates are that in 2011 only 4% of all new phones will be NFC-enabled. In June 2008.de – Germany Short description StarMoney Handy allows financial organisations to provide their own mobile service and free mobile banking access to all online accounts. the service announced to expand the geographical reach of the pilot to all eleven cities served by the RMV.00 /month.starmoneyhandy. M-Delivery. With less than 1% of all new mobile phones produced in 2008 being NFC-enabled. even accounts with different organisations. T-Systems.
pdf .pte. Touch&Travel www.shtml . T-Mobile Streetgigs http://img. a series of pop concerts at unusual locations in Germany.at/files/binary/2341. The trial is executed by 200 persons.co.Germany Short description German mobile applications developer Mindmatics has developed the mobile ticketing service for the T-Mobile Street Gigs. StarMoney Handy is commercially launched by five German Sparkasse banks.bahn.0 Handy software for access to the banking systems of around 4. who regularly travel on the ICE route Berlin-Hanover. the fact that tickets can be forwarded to friends and family is an additional advantage. The recipient is less likely to forget his ticket. Mindmatics has provided T-Mobile with an online-based registration for free SMS tickets for the concert.uk/db_uk/view/news/20080301.000 financial organisations.Germany Short description Railway operator Deutsche Bahn and Vodafone Germany cooperate for a mobile ticketing trial that started on 29 February 2008. customers get the StarMoney Mobile 2. and the event organiser saves money in printing the tickets. Additional information Once they have signed a contract. For free tickets (like these).Mobile payments 2010 .88 pilot. one Volksbank and Deutsche Sparkassenverlag. which can be scanned at the concert's location using barcode scanners Mobile ticketing SMS M-Delivery None. since content is free Free None Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential The mobile phone can play a very useful role in mitigating the use of paper entrance tickets. The pilot will also run in a part .
Vodafone Germany enables their customer to exploit the whole potential of m-commerce for secure payments in the Internet. A technology push product. the service is only available in Austria and Germany but Dimoco plans to roll it out in other countries. m-commerce. According to the planning. TopUp Mobiliser.at/en – Austria. Mobile Wizard). Initially. Type of service Mobile POS . With the paybox Mobiliser Products (Money Mobiliser. travelers all over Germany can enjoy make use of the service in 2010. Potential The initiative has assumed that NFC-phones would become widely available in 2010.Mobile payment services and pilots of Berlin's S-Bahn and in Potsdam's public transport routes. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile ticketing NFC M-Order and M-Delivery SIM Free of charge during trial Partners for the project are public transport providers Verkehrsbetrieb Potsdam. Motorola and semiconductor manufacturer NXP. Additional information 12Pay www. Consumers can confirm the payment process via SMS or web. Vodafone Germany selected Paybox as the processor to launch a national mobile payment system in Germany. as well as technology partners Atron electronic. Germany Short description Austrian mobile payment services provider Dimoco has launched a new m-payment service called 12Pay. Berliner Verkehrsbetriebe. Using 12Pay. businesses can enable clients to pay for products and services via their mobile phone bills.89 . which is aimed at business customers. smart card developer Giesecke&Devrient. content and NFC payments.dimoco. This is not the case. In July 2007.
Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Parking. Technology: Enigma In September 2008.hu/eme/ENindex. Mobile Banking SMS M-Payment. then the amount will be debited to the bank account at the end of the month. wireless transfer or cash deposit at one of EME’s outlets. postal checques. .fizessenmobillal.06) per transaction MNO: Pannon.Mobile payments 2010 . M-Order.90 Type of technology Domain Secured through Cost for usage Partners Additional information SMS M – Payment PIN None for end user Technology: Denarii Payments MobilFizetés www.90). 30. M-Delivery PIN From HUF 15 (EUR 0. the direct deduction from the bank account is free of charge.000 clients were able to pay the parking fee with the help of their mobile phones in 16 towns all over the country and in all the districts of Budapest. can buy motorbike and highway stickers and buy subscription to a journal directly from their bank account or from preloaded wallet. Bank : FHB and MPP. The user can fund the wallet using credit card.) consumers can pay for their parking. The amounts of low value purchases accumulate until it reaches HUF 500 (EUR 1.php . T-Mobile. the service was extended enabling participants to pay for utility bills using the service. (EME Zrt.Hungary Short description With the help of OTPdirect and Elsı Mobilfizetés Elszámoló Zrt. The preloaded wallet comes with a monthly fee. In March 2009.
M-Payment SIM. with a software solution that allows customers of Italian bank BancoPosta to carry out payment transactions with their mobile phone. They use their position in the mobile and banking worlds. Mobile banking SMS M-Banking. it is quite easy and handy. BancoPosta prepaid or credit card. The project has proven quite successful with over 200. The combination of a bank and M(V)NO offering mobile payments has proven to be successful in Japan – but with the limited market share of both Italian . Therefore. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance. Their goal is to turn the mobile phone into a real e-wallet. Hungary however is still a cash-based society.Mobile payment services and pilots Potential With most parking spaces in Hungary connected to the system. The purchase of other goods and paying for utility bills do not really fulfill a need. username/password MVNO rates apply MVNO: PosteMobile . the mobile phone is a suitable channel to conduct banking business with in Italy. Potential The internet penetration in Italy is among the lowest in the EU. Bank : BancoPosta . The service fulfills a need to pay parking space per minute and reduces the hassle of having the right change.000 PosteMobile customers. PosteMobile announced in June 2008 that it would pursue its innovation strategy by rolling out mpayment and m-commerce services. Technology: Gemalto PosteMobile was launched in November 2007 and immediately started to deploy mobile-banking services to their customers. among the over 250.91 .000 BancoPosta customers using these services in just six months. send a telegram or a fax.postemobile. Both PosteMobile and BancoPosta are part of the Poste Italiane Group. Users send a command from their mobile phone to pay their bills.it – Italy Short description PosteMobile is the first Mobile Virtual Network Operator (MVNO) in Italy. top up their account and wire money from their BancoPosta account and from PostePay. PosteMobile www.
Type of service Mobile ticketing. Rabobank/Rabo Mobiel also participates in NFC trails. The mobile phone number is the user name.beep. Mobile ticketing for events SMS sending a barcode M-delivery. this success is unlikely to be repeated. Ordering a ticket is done by the internet.Mobile payments 2010 . Type of service Type of technology Domain Secured through Rabobank NFC trial The Netherlands Short description Rabobank has become the first bank in Europe to introduce mobile banking and a mobile service in one with Rabo Mobiel. Cost for usage Partners Additional information Service fee.92 companies. the delivery takes place on the mobile phone (barcode). The payment is taken from a mobile wallet connected to the phone. NFC payments using mobile phones are tested at (among others) the fast food chain Febo. With the mobile phone number and PIN code customers can log on the internet to order tickets. Customers with a mobile phone with a NFC chip can access the Febo automatic food dispenser to buy food by swiping their mobile phone along the food dispenser.nl – The Netherlands Short description Beep! allows customers to pay for tickets over the internet and then receive the ticket over SMS. Beep! Mobile Tickets www. Beep! works together with organizations such as The Entertainment Group. Register at Beep. a producer and organiser of concerts and festivals in the Netherlands. mobile POS . cost depend on cost of the ticket Beep! Mobile Tickets is a joint venture of KPN and Imtech.
rabomobiel. Payments are sent over a secured line.The Netherlands Short description Rabo SMS betalen is a wallet and subscription based mobile payment method. C1000. Diergaarde Blijdorp (Zoo). For using Rabo SMS betalen (SMS payment). After that a confirmation will be sent to both sender and recipient. MVNO Rabo Mobiel had about 125. At the end of the process of making a payment. Rabo SMS Betalen www. a codeword has to be inserted to confirm the payment.nl . Additional information Potential Like all NFC-pilots outside Asia. Type of service Type of technology Domain Mobile remittance SMS M-Payment .g.Mobile payment services and pilots Type of technology Domain Secured through Cost for usage Partners NFC and SMS M-Payment PIN MVNO: Rabo Mobiel (MNO: KPN). This seems to be the common goal for the banks to replace cash and wallets with one device that could provide all this in a compact package. the NFC initiative has to compete with very efficient incumbent payment infrastructure. a customer sends an SMS to a short code to the mobile phone number of the intended recipient of the money and the amount. which Rabobank is part of.: Febo.000 customers for its mobile service in April 2008. NFC trial partners e. the Rabo NFC trial suffers from the lack of availability of NFC-enabled phones. making widespread adoption problematic. Ironically enough. In the roadmap it is the banks vision also to use mobile phones for contactless payments. The target group is not yet used to NFC.93 . The partner within this scheme is multimedia company Talpa.
a trusted third party. a system initially launched for micropayments online. Potential The much advertised context for Rabo SMS payment is splitting the bill in a restaurant with friends. transferring money from account to ‘ordinary’ bank account costs EUR 0. established for this purpose and this project. Partners Additional information Rabobank The system is based on MiniTix. Norway Type of service . DnB Nor and TeleNor both launch a separate pilot in Oslo.50. after that EUR 0.94 Secured through Cost for usage None for sender until 1 January 2009. Both companies own 50% of the stock in TSM Nordic. Mobile remittance Mobile ticketing Type of technology Domain Secured through Cost for usage Partners NFC M-Payment SIM Not disclosed Bank: DnB Nor MNO: TeleNor Additional information Still in pilot stages. Telenor Norway Short description A cooperation between Norwegian bank DnB Nor and MNO TeleNor to provide contactless payments. it is unlikely that situations like these happen often enough to attract a sufficiently large consumer base. when typically no one has exact change.Mobile payments 2010 . Of course the sender is charged for the SMS by the MNO. Although this is a viable context.05. Loading money into the account and receiving money is free. Rabo SMS betalen can be used by anyone with a Dutch bank account (not necessarily Rabobank’s) and a Dutch mobile phone number.
At the point of sale of participating merchants.pl/en/ . mobile operator Polkomtel (Plus) have teamed with mobile payments company mPay to launch a mobile payment service which allows users to .Poland Short description Mobile wallet application that can be accessed via USSDmessages.Mobile payment services and pilots Mobile Axept http://www. The user can fund his wallet via a bank transfer (no fees charged).mobileaxept.mpay. end users can pay via their MPay wallet dialing *145*Merchant_ID#. Users can register their credit card (number. In a separate move. The user can hang up and payer and merchant both receive a confirmation of the payment. mPay will confirm the message that the transaction is in progress. Polish bank Citi Handlowy. An IVR system will mention the transaction. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS SMS M – Payment 4 digit PIN Depends on operator MPay Wallet www. he enters his PIN. Currently users can only pay by MobileAxept in some taxis participating in a trial.95 .com/eng – Norway Short description mobileAxept is a technological platform that allows user to pay with their credit cards using your mobile phone. and if the end user agrees. expiry date and CVC2 security code) and connect it to their MobileAxept account.
Customers also receive confirmations of successful transactions via SMS. Clients have to choose the TeleMultibanco checkout option when paying for a product and only provide their mobile phone number as a form of identification. the service is available to passengers of the public municipal transport in Warsaw. Type of service Type of technology Domain Secured through Cost for usage Mobile POS. Users then receive an SMS with a link to WAP Payments TeleMultibanco and confirm the transaction using a TeleMultibanco short code. 60-minute or 90minute time-limited tickets. In order to use the service. the service enables Plus customers to make mobile payments for ZTM time-limited tickets directly from their Citi Handlowy bank account.Mobile payments 2010 . . Users do not need to install applications and the service works with all mobile phone models. Also required are phones that support WAP. customers need to register for the TeleMultibanco service. Dubbed 'Pay With Your Mobile’. subscribers dial ‘145’. enter a code specific to the ticket type and then press #.96 pay for Warsaw transport authority (ZTM) tickets.sibs.” According to mPay MNO: Polkomtel (Plus) Partners Additional information MB Phone www. Users can purchase 20-minute. 40-minute. for the merchant “A commission for accepting mPay payments is very low (just a few percent) for every transaction.pt/pt/mb/prodserv/mbphone/ Portugal Short description MB Phone allows users to make online payments via WAP websites using their mobile phones. In order to buy a ticket. Initially. Mobile ticketing USSD M – Payment 4 digit PIN None for the end user. rather than bank account data. which is already used at ATMs for certain mobile transactions. It is individually negotiated and fixed by contract.
Mastercard trial www. On top of the mobile payments service.97 . Optimus. The program will focus on consumer and merchant experience and will include a maximum of 500 consumers equipped with Nokia 6212 NFC-enabled handsets embedded with Maestro PayPass technology. participants as well as merchants will have access to marketing services provided through smart posters that rely on NFC. LogicaCMG (Netherlands). processor: SIBS ING.Mobile payment services and pilots as well as adequate pricing plans. MasterCard. Additional information . Trial participants are to be able to pay for low value purchases of up to RON 80 (EUR 20.66) by tapping their phones against contactless terminals installed in 30 to 40 locations. Venyon (Finland) and Toro (Taiwan).nl – Romania Short description Dutch banking group ING has teamed with MasterCard to develop a NFC-based mobile micro-payments service based on MC PayPass. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS WAP/Internet M – Payment 4 – digit PIN Free during trial period (until 30 June 2009) MNO: Vodafone. TMN. Technical: Collis (Netherlands). Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment Embedded Free during trial Financial: ING.ingbank.
bee Romania Sorin Bulai. transfer money to another good.bee www. The initial Partners Additional information .ro/en – Romania Short description BCR bank and Good. Customers can view information about their BCR accounts. The payment infrastructure it is to compete with is not so efficient.bee Mobile Transactions offer users access to mobile transactions. balance check: EUR 0.Bee access number.35 – 0. money transfer: EUR 0.3 million banking transactions in 2009 and targets 100.bee Mobile Transactions can be used from any type of mobile phone.98 Potential This NFC pilot suffers from the same drawbacks as similar initiatives: the lack of NFC-enabled phones. Romania is likely not to be in the first wave op adoptors. top up their or other persons’ mobile phone prepaid accounts.bee client’s BCR account using a mobile phone number. customers have to call a Good. Technology: Good. transfer money to any bank account in Romania as well manage their bank accounts (change PIN or block card).Mobile payments 2010 . users can make purchases in shops displaying the Visa logo. without the need for any application or internet access. Even if these phones were to become available on a wide scale.bee The company expects some 1. Type of service Type of technology Domain Secured through Cost for usage Mobile POS SMS M – Payment PIN Starter kit: RON 26 (EUR 6).goodbee.14 – EUR 0. it might stand a slim chance.56. the subscribers must have an account at BCR. withdraw money from an ATM and check money available in the account.21 Financial: BCR and Visa. Good. so if ING succeeds in setting up an efficient payment infrastructure. In order to use the service.000 customers in 2009. Good. In order to use these services. a current account and a Visa Electron debit card Using the debit card. according to the managing director of good.
Vodafone. Cost for usage Partners Additional information . debit or pre-paid cards) and that allows to carry out a variety of transactions transforming the mobile phone. Mobile remittance. authorizing payments (pay an invoice) and send money to another person. Mobipay’s offering is very complete includes services in payment contexts where it really fulfills a need. Mobipay can e. Mobile POS SMS. because of the plethora of options it offers consumers and the sheer number of MNOs and financial institutions cooperating.5 million.mobipay. pay for a taxi. the telephone number associated to Mobipay. Users can choose to link their Visa or MasterCard debit or credit card to their Mobipay account and pay from their debit/credit card.g. 8 cents per transaction MNO: Orange. top up a prepaid card.bee reached over EUR 1. USSD M. M-Order. be used for purchases on the internet. Telefonica. or – for smaller purchases (< EUR 6) – can choose to have the amount deducted from their airtime credit or charged to their phone bill.99 . M-Delivery A personal Mobipay number. Type of service Type of technology Domain Secured through Mobile ticketing. a PIN number of the telephone associated to Mobipay.Payment. P2P payments are not yet possible. Banks: 9 Spanish financial institutions. public transport ticketing.com – Spain Short description Mobipay is a system that activates existing payment means (normal or virtual credit. Potential Mobipay is perhaps Europe’s most promising mobile payment method.Mobile payment services and pilots investment made by Good. Mobipay www. Technology: Oberthur Mobipay is a model open to all mobile telephone operators and financial or non-financial card issuing entities who wish to offer mobile payment services to clients. Mobile parking.
htm . while Telcel’s subscriber base exceeds 56 million.Spain Short description Telefonica Spain and Spanish provider of R&D services Sermepa have launched a near field communication (NFC)-based mobile payments trial in Spain.100 Banamex SMS Banking www. Banamex has 12 million customers in Mexico. Telcel’s parent company America Movil forecasts that almost 2.com/home_eng. users are able to select the bank card they wish to use to make payments. Telcel subscribers can request account information.shtml . According to Telcel’s director of value added services Marcos Quatorze. By linking the phone number to their Banamex credit card account. The limit for each transaction has been set at MXN 6 million (EUR 320).Spain Short description To use the mobile banking service. a figure expected to increase to 9 percent by 2012. Using the Virtual Mobile Wallet application which is stored on the mobile phone’s SIM. Bank: Banamex At present. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking SMS M – Payment PIN and secured SIM Free of charge MNO: TelCel. Telcel users are required to change their SIM card with a special card with security settings available at Banamex branches.es/ingles/index. users need to wave their NFC-based handsets over NFC terminals to complete a payment process.telefonica. NFC Telefónica www.Mobile payments 2010 .9 percent of its overall mobile user base in Latin America will use mobile banking services by 2010. Through applications build in the SIM trial participants are able to .sermepa. make credit card payments and pay phone and electricity bills via SMS. Upon choosing a card.
Technology: Sermepa Presto Park&Go www. Orange. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile parking SMS M – Order. Vodafone. The service as such is free of charge. M – Payment PIN Non MNO: Telefónica. Without preregistration. Technology: PrestoParking .prestoparking. use as well as cancelation. The service is available for users of the Orange. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS NFC M – Payment PIN Free during trial MNO: Telefónica. such as emission. activation.Mobile payment services and pilots manage the life cycle of various financial cards. Vodafone and Telefónica networks. The amount due is then either deducted from the pre-paid credit or added up to the monthly phone bill. over-the-air.com – Spain Short description Prestoparking offers users of parking meters in the Spanish municipality of Caldes d’Estrac (near Barcelona) the possibility to pay their parking ticket by mobile phone. users can send an SMS with the time until which they want to park their car and the license plate number of the car to a short code.101 .
Mobile payments 2010 - 102
Banco Popular Español www.telefonica.com/home_eng.shtml - Spain Short description Spanish bank Banco Popular Espanol and Telefonica launched a web-enabled mobile banking service for 3G iPhone and iPod Touch users. The service enables Telefonica subscribers to check their Banco Popular Espanol bank accounts, send money, make purchases and block or activate cards via the internet. Telefonica designed a software application to adapt Banco Popular’s access systems, information and operations to the iPhone technology. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking WAP/Internet M – Payment 4 – digit PIN Free of charge Telefonica, Banco Popular Español In 2009, Banco Popular Espanol had more than 80,000 mobile banking customers and manages around 500,000 mobile transactions per month.
PostFinance SMS Banking www.postfinance.ch – Switzerland Short description Swiss bank PostFinance offers a free SMS transfer service to its Postkonto customers. After registering, customers can use the service to transfer up to CHF 100 (approximately EUR 66) per day between Postkonto account holders. Besides remittances, customers can use the service to check their account balances and their latest transaction on their accounts. Before approving transactions, PostFinance will check each transaction for the correct mobile phone number as well as the personal limit of the user. Registered recipients will receive an SMS after each money transfer is approved by the bank. Type of service Mobile Banking
103 - Mobile payment services and pilots
Type of technology Domain Secured through Cost for usage Partners Additional information
SMS M – Payment 4 digit PIN None Financial: PostFinance
Epay24 www.epark24.ch – Switzerland Short description Swiss mobile payment service provider Epay24 has partnered with Swiss bank PostFinance to launch a mobile payment service for unmanned points of sale in the Bern region. With Epay24, merchants can accept payments made via the service PostFinance’s m-payments service ‘Handyzahlung Postfinance’. To offer the service, merchants need a valid bank account and an ePay 'residence' number, to which ePay links the payments from their customers. The service was launched in 2008 in Horgen at Zurichsee and has been extended to almost 100 locations across Switzerland. Epay24's mobile payment service focuses on unmanned points of sale for florists and growers of fruit and vegetables. To make a payment, customers call a free number, enter the location number and follow the spoken instructions. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS Voice M – Payment 4 digit PIN None Financial: PostFinance; Technology: Epay24
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AvantixMetro www.atosorigin.com/en-us/Newsroom/en-us/Press_Releases/2008/2008_07_10_01.htm United Kingdom Short description IT services company Atos Origin has rolled out a mobile ticketing service for the Heathrow Express train network, between London Heathrow’s airport terminals and Paddington Station in Central London. Passengers on the Heathrow Express can now receive their tickets directly to a mobile phone or PDA. This is the first implementation of AvantixMetro, Atos Origin’s mobile and e-ticketing service. Individual and corporate customers can now book tickets online, via the Heathrow Express website, and choose to receive either a bar-coded e-ticket that is stored on their mobile phones, or a self-print version of the ticket. These tickets are then scanned and validated on-board the Heathrow Express train, via a Casio IT-3000 terminal. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential Mobile ticketing SMS M-Delivery Lies outside the mobile phone Free Atos Origin, AVANTIXMetro, Heathrow Express Launched July 2008
The service is convenient for the user. It is not a cost saver for Heathrow Express though. The cost of printing the e-tickets lay with the consumer, so it should be regarded as a free extra service from Heathrow Express.
Mobile theatre ticketing service United Kingdom Short description Commercial mobile theatre ticket service. To access the mobile box office, O2 customers simply text LOTR to 2020 on their mobiles. The new service is delivered by Trinity Mobile on behalf of O2.
105 - Mobile payment services and pilots
Type of service Type of technology Domain Secured through
Mobile ticketing SMS M-Order Using a secure credit or debit card transaction over Trinity's Easy Ticket site within O2's Active Portal Free Mobile Operator: O2 UK
Cost for usage Partners Additional information
Monilink www.monilink.co.uk/mobile-banking - United Kingdom Short description Ulster Bank has formed a joint venture with the UK ATM network operator Vocalink and mobile banking services provider Monitise to offer a mobile banking service. The customers of the Northern Ireland-based bank are enabled to access their account balance and view mini-statements on their mobile phone after a sign-up. In future, more services are to be added to this service. Type of service Type of technology Domain Secured through Mobile remittance WAP / Internet M-Banking Only a registered mobile phone linked to an account can be used to access account details, which are protected by the customer's personal PIN code. In order to increase security, no data is stored on the mobile device or on a server. Anytime Mobile Phone Banking & Text Services are free until the end of August 2008 as part of a special introductory offer. There are no data charges from your mobile network for registering, using or downloading Monilink with the exception of Orange and Virgin. For Orange and Virgin customers Monilink usage and download will be charged at your standard data tariff. Partners Monilink is a joint venture between Monitise Plc, a UK technology service company, and VocaLink who run the UK's ATM/SelfService network. Monilink is supported by 7 mobile operators in the UK ( T-Mobile, Orange, Vodafone, O2, 3, Tesco Mobile and
Cost for usage
com – United Kingdom Short description Orange. Payforit www. Payforit will support micropayments (generally under GBP 10) for services purchased on mobile portals. T-Mobile. Vodafone. the Payforit scheme has been developed by the operators to promote a trustworthy and consistent standard for paying by mobile. Payforit claims to provide access to over 52 million mobile phone users in the United Kingdom alone. Partners Additional information Mobile operators: Orange. Initially.payforituk.Delivery . Any purchases made will be charged directly to the monthly phone bill. opening up new revenue streams for many merchants. or deducted from the prepaid credit. From May 2007 Payforit has been extended to support web transactions also. customers can see their account balance in real time. . Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP / Internet M-Order. as well as the price of the service the customer orders. M. M-Payment None For downloads. providing a quick and simple billing option in the UK. view a mini statement detailing the last six transactions and add credit to up to five pay as you go mobile phones. 3 and O2 launched a payment system that allows subscribers to use the mobile phones to pay for low value purchases. With Monilink. browsing costs are charged in accordance with the mobile operator data tariff. No additional charges for the payment as such.106 Virgin Mobile) Additional information Monilink is UK's mobile banking network. so that consumers can buy with confidence when they are making one-off payments or setting up subscription services via their phone. First announced in March 2006. 3 and O2.Mobile payments 2010 . T-Mobile. providing banking customers with access to their financial information directly from their mobile handsets. Vodafone.
The next time the customer uses the phone RingGo asks for some of the card information. a system that enables drivers to pay for their parking and top up their parking time by using their debit or credit card over the phone.000 transactions in Oxford alone. Cooperation between MNOs adds to trustworthiness. RingGo seems to have trouble convincing parking authorities to enable people to actually use the service. by means of a text message.ringgo. RingGo mobile www. GBP 0.500 transactions/month in Oxford. RingGo registered 1. A year ago. The costs to merchants are very high. VISA.107 . Delta and Maestro Technology: Cobalt Telephone Technology Additional information In April 2009. RingGo registered 7.co. limiting its usefulness to low value. of which Oxford is the most important.30 on top of the parking fee. Switch. Type of service Type of technology Domain Secured through Cost for usage Partners Potential .uk – United Kingdom Short description Business process services provider Cobalt introduces RingGo.but not all .of the credit card details in a secure data vault.000 transactions per month in the most important locality is not that impressive. high margin products. Mastercard. 7. Mobile ticketing Ringo uses voice calls for the ticketing service M-Payment When the customer first uses RingGo.20 – GBP 0. Cobalt will store some . The service is offered in 20+ localities. The system also notifies users when the parking time is due to expire. The growth in transaction numbers is: it shows a rapidly growing awareness.Mobile payment services and pilots Potential For its niche (low value payments) this solution is not unique but very successful. Although the concept is good and user friendly.
The user needs to install a free application on the mobile phone in order to be able to use MoBank The service is currently only available on the i-Phone and works for only a couple of banks. .United Kingdom Short description MoBank is a mobile banking service.50 per transaction. Mobile banking WAP/Internet M – Payment 4 – digit PIN Life time membership fee GBP 15 or GBP 0.asp?page=easyticket – United Kingdom Short description Trinity Mobile provides Mobile Tickets.Mobile payments 2010 .trinitymobile. Type of service Type of technology Domain Secured through Cost for usage Mobile POS.uk/mobank/ . Email To SMS and Multimedia Messaging services Type of service Type of technology Mobile ticketing SMS WAP Domain Secured through Cost for usage Partners Additional information Trinity provides Mobile Ticketing services to other parties. The user can register one debit or credit card (Maestro.uk/template2. plus the MNO charges for data traffic while performing a transaction.108 Trinity Mobile www. Mobile Coupons.co. Visa or Visa Debit) to the MoBank account. Bulk Text.co. like for Arriva and YourRail M-Delivery None Free MoBank www. Mobile Loyalty. Mobile ticketing. which allows users to pay for purchases.mobank. SMS To Email. MasterCard. check balances.
Latin America Short description With premium SMS. Atlas Interactive MO-Billing (MO = mobile originated) defines a billing process in which the end.user will be billed for every SMS he receives on his mobile after initiating the billing process with a free SMS MO. MT-Billing (MT = mobile terminated) defines the reverse process of billing the end. Potential Premium SMS is the world’s most used form of mobile payment. but typically around 25% of the transacted amount. The payment either gets billed to a consumer’s monthly mobile phone bill or is deducted from the consumer’s pre-pay account.atlastelecommobile. merchant pays an unknown fee to M(v)NO. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information . In this message flow the end. Mobile POS SMS M-Payment None No charge to the consumer. a few (big) banks. the consumer pays a pre-agreed rate for a service.109 . Atlas Interactive launched its service in Argentina.Europe.com/ . like downloading a logo or ringtone. Mexico and Ecuador. with Barclays you still have to type in your Barclays PIN next to your MoBank PIN – seems SO complicated – Many steps required to have a payment succeed.user types a SMS in his mobile phone and sends it to a certain short code. 0 chance Atlas Interactive SMS Billing www. In October 2008. Columbia. Peru. The method is especially popular among merchants of and mobile online content. The amount billed is invoiced by the mobile network operator by the end of the month. He will then be billed by the end of the month on his mobile operator's invoice for every SMS sent to the shortcode. Venezuela.user.Mobile payment services and pilots Partners Additional information Chance of success: only one phone.
screen and seating.110 7.2 North America Everyman Cinema Club mobile ticketing www. Users can send everyone (also non-subscribers) money via SMS.com – Canada Short description Everyman customers can buy mobi-tickets online at everymancinemaclub. as long as the sender and recipient have a Canadian mobile phone number. Mobi-tickets are SMS text messages that contain a unique barcode and information about the film time.Canada Short description An RBC Mobex account is a stored value account that allows users to load funds from their bank account or from a credit card.everymancinema. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing SMS M-Delivery None None RBC Mobex http://rbcmobex. Type of service Type of technology Domain Secured through Mobile remittance SMS M-Payment PIN . Users can use it to send and receive money by mobile phone or via the internet and there are no minimum balances required.com. Mobi-tickets can also double as vouchers or coupons that enable customers to purchase for food and drinks.com/ . Customers have to present their mobitickets at the cinema where it is scanned by staff to allow entry to the film. The service is specifically aimed at P2P payments.Mobile payments 2010 .
Users can keep track of their spendings online. . no fees are incurred to the consumers. In order to retrieve money. EnStream. Paybox Service highly similar to Rabo SMS betalen. The service is convenient. Type of service Type of technology Domain Secured through Cost for usage Opening an account and receiving funds are fee of charge. which could discourage consumers. but requires a separate wallet to be set up.50 or if linked to a credit card 3. which is a joint venture between MNOs Telus. The costs of this service will therefore probably not be so much of an obstacle. the recipient has to subscribe to the service. Sending costs CAD 0. They have to download a Java-based application to their cell phone in order to transfer money.111 . Zoompass Canada Short description Zoompass is a Canadian mobile P2P remittance service. Bell Mobility and Rogers Communications Mobile remittance WAP/Internet Mobile Payments Partners Additional information America First Credit Union United States Short description After downloading the mobile banking application to their phones. Consumers open a Zoompass account and link it to their credit card or bank account.Mobile payment services and pilots Cost for usage Partners Additional information For the time of the pilot. customers are able to see current balance information.5% of the total transaction amount. Potential Transferring money electronically P2P costs money in Canada in contrast to some European countries. Money can be sent to all Canadian mobile phones.
Logging into mobile banking requires a six-digit PIN. . they can pay bills electronically and transfer funds from one account to another within the same bank Payment of bills is possible to existing payees. Activation of the service can only be initiated in the secure mobile banking environment. Logging into mobile banking requires a six-digit PIN. New bill payees must be set up in the online banking environment. Activation of the service can only be initiated in the secure mobile banking environment. The service was announced in October 2007 and has been operational since March 2008. New bill payees must be set up in the online banking environment. They have also access to their transaction history. Type of service Type of technology Domain Secured through Mobile remittance WAP/Internet M-Banking and M-Payment Six digit PIN on downloadable application Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such Firethorn America First Credit Union has 432. they can pay bills electronically and transfer funds from one account to another within the same bank Payment of bills is possible to existing payees. Arvest Mobile Banking United States Short description After downloading the mobile banking application to their phones. AFCU mobile banking is only available for carriers Alltel. AT&T and Verizon Wireless.000 members. customers are able to see current balance information.112 They have also access to their transaction history.Mobile payments 2010 .
Region’s Finance.bancorpsouthonline.113 . BankCorp South. Region’s Finance and SunTrust Banks are exactly similar.United States Short description Wachovia Mobile provides a safe and secure way for Online Banking customers to access eligible Wachovia accounts for free.checking. First Bank. SunTrust Banks. www. Wachovia offers two ways to access accounts from a mobile device: through a mobile application or through an Internet enabled browser.Mobile payment services and pilots Type of service Type of technology Domain Secured through Mobile remittance WAP/Internet M-Banking and M-Payment Six digit PIN on downloadable application Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such Firethorn and CheckFree Logging in requires a six-digit PIN. First Bank. Activation of the service can only be initiated in the secure . Only available for carriers alltel. The service of BankCorp South.com/home/personal. at&t and Verizon wireless Activation of the service can only be initiated in the secure mobile banking environment. The service was announced in October 2007 and has been operational since April 2008.Mobile_Banking . Type of service Type of technology Domain Secured through Mobile remittance WAP/Internet M-Banking and M-Payment Six digit PIN on downloadable application Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such Firethorn Logging in requires a six-digit PIN.
Mobile Banking service is free. pay bills. Cellular South and Verizon Wireless. via mobile handset or smart phone. Customers have to enrol to this service via their mobile banking account. The service is only available for carriers Alltel. customers can use a mobile phone or smart phone to access balance information. Without such an account. Bank of America 'Bank the Way you Live' www. Customers will be charged mobile access rates. The system is based on text messaging and users can check their balances. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information With Mobile Banking from Bank of America. transfer funds and find nearby ATMs or banking centres.114 mobile banking environment.com/Main.bankofamerica. Mobile remittance WAP/internet M-Banking Personal information is protected by advanced encryption technology to prevent unauthorized access.cfm?template=mobile_banking – United States Short description Bank of America has launched the 'Bank the Way you Live' online banking micro site.aspx?TabID=14&PageID=106 – United States Short description Bank of Stockton provides its online banking customers with an additional channel to do their banking business: the mobile phone.Mobile payments 2010 . AT&T. make transfers between own accounts and transfers between accounts of the same bank.bankofstockton. The micro site features information on tools that allow its customers to control and manage their personal finances online.com/onlinebanking/index. enrolment is not possible. Bank of Stockton www. Type of service Mobile remittance .
6 billion customers. internet Mobile payments Type of service Type of technology Domain Secured through Cost for usage Businesses pay 30%-40% of the transaction value. operating system or wireless transmission standard. reaching a potential market of 1. manufacturer. US Cellular. Mobile payments SMS.115 .United States Short description Boku is a payment method for online purchases. The transaction is thus completed and the charge will be included in the monthly bill. Boku acquired competitors MobilCash and Paymo. T-Mobile. Boku www. Consumers pay the price of a SMS. Sprint. Nextel. Partners Additional information . The service is said to work regardless of carrier.com . AT&T. Boost. Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such ClairMail Available on the major US mobile network operators: Alltel. the system sends an SMS asking for confirmation. Soon after launch of the service. users click on the "Pay by Mobile" button and enter their phone number as well as their mobile provider. Cellular One. Boku has closed agreements with 170 mobile carriers in 50 countries. At the merchant’s website.Mobile payment services and pilots Type of technology Domain Secured through SMS M-Banking and M-Payment PIN number that has to be sent along with every command.boku. No registration is required. Verizon and Virgin Mobile. to which the customer must reply by texting “Y” (for “yes”). Once the purchase is made.
Due to Boku’s global reach.Mobile payments 2010 . Boku would not know the difference. Mobile operators: At7T.com/citimobile/ . Sprint and Verizon The service is developed in conjunction with mFoundry.com/internetbanking/mobile. transfers funds among accounts. pay bills.United States Short description FirstBank's Mobile Banking service: view account balances and transfer funds. spoof the confirmation SMS to Boku.citibank.efirstbank. Mobile remittance WAP/internet M-Banking Type of service Type of technology Domain . and the real owner of that phone number would only detect the fraud at the end of the month when the bill comes in. or connect to Citi’s customer service centres. search for City branches and automated teller machine locations. Mobile remittance WAP / Internet M-Banking PIN The service is for free although customers have to pay data download charges from the mobile operators. Type of service Type of technology Domain Secured through Cost for usage Partners FirstBank's Mobile Banking www. Cinhular Wireless.html .116 Potential Boku seems susceptible to fraud. Citibank mobile banking www. this could be a global fraud scheme and seriously harm the service. a aompany that specializes in mobile application development Additional information Citi Mobile service requires a registration of a specific phone and selection of a six-digit access code. A fraudster could enter a mobile phone number and then using a free online SMS spoofing service.United States Short description Citi Mobile customers can review balances and transactions.
pay bills to existing payees and an ATM locator Mobile remittance WAP/Internet M-Banking and M-Payment Username – password Wireless provider fee – no fee for service as such Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Huntington Bank has hit its annual mobile banking target in two months. For security purposes. Mobile banking requires a 6-digit PIN to access the application. Cost for usage FirstBank does not charge any fees for mobile banking. All data placed into local storage on the mobile phone is encrypted.Mobile payment services and pilots Secured through The mobile banking application is protected with two-factor authentication and encryption of offline storage.com . the data stored locally for the mobile banking application is unreadable. Following its launch of mobile banking service in 30 June.United States Short description Huntington Mobile Banking offers three functionalities on the mobile phone: check balance. SunTrust and BancorpSouth. LG VX8700. Customers will need to register with their financial institution's online banking service in order to use this mobile banking service. including the Chocolate and enV by LG. Firethorn also offers the m-banking service to customers of Wachovia. Huntington hit eight times its monthly usage goal in July . Huntington Bank mobile Banking https://mobile. Connectivity and usage rates may apply. This ensures that if the mobile phone is lost or stolen. LGVX9400 and the Samsung SCH-a950.huntington. The Firethorn app is available on several phones from Verizon Wireless.117 . US-based mobile operator: Verizon Wireless Firethorn offers the a m-banking service Partners Additional information The service is based on a Firethorn application that utilises both PIN and device lock-out capabilities. transfer money between own accounts. LG VX8600. mobile banking enrolment takes place within internet banking.
ibc. The service is only available for carriers AT&T and Sprint. Ohio. New bill payees must be set up in the online banking environment. Activation of the service can only be initiated in the secure mobile banking environment. Huntington Bank is an USD 56.118 and is about to exceed that by 40 percent in August. After downloading the application to their phones. on its ATMs and enclosed marketing material sent with paper statements. . The service is compatible only with phones on the AT&T and Sprint networks and is provided by mobile financial services provider mFoundry. of which 50 percent bank online. They have also access to their transaction history. which includes ads on its home page. within its online banking section.com/Personal-AccountFeatures.1 billion-asset regional bank based in Columbus. The bank reached its eight months target in the first four weeks after the service’s launch. Huntington says its mobile banking service’s success is the effect of a marketing campaign. US.Mobile payments 2010 . IBC Bank www. Payment of bills is possible to existing payees. Huntington has 1 million retail banking customers. they can pay bills electronically and transfer funds from one IBC account to another. customers are able to see current balance information.aspx?sSection=mobilebanking – United States Short description US-based IBC Bank has activated a new mobile banking service called IBC Mobile which enables customers to conduct their business on their phones in either English or Spanish. Type of service Type of technology Domain Secured through Mobile remittance WAP/Internet M-Banking and M-Payment Six digit PIN on downloadable application Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such mFoundry The service was activated in July 2008.
K-Rock Center. the user selects an account and receives a targeted . On POS. Mocapay users have to subscribe to Mocapay prior to being able to use the service. Times Union Center The service was launched in October 2008 Additional information Mocapay www. KRock Centre in Kingston (Canada) and BOK Center in Tulsa (US).US. any payment account to any mobile handset to transact at any point of sale system.Mobile payment services and pilots Mobiqa Venue Ticketing http://epnn. Canada Short description UK mobile technology company Mobiqa offers mobile ticketing in cooperation with US online tickets provider Tickets.com. On top of receiving their ticket onto their phone.” Any American consumer.mocapay. A mobi-ticket is generated and delivered directly to the customer's mobile phone in the form of a SMS.com. BOK Center.com.com/content/view/18559/489/ . that is. Mobile ticketing will become available for events taking place at three venues in US and Canada: Times Union Center in Albany (US). Type of service Type of technology Domain Secured through Cost for usage Partners Mobile ticketing SMS M-Delivery None Free of charge Mobiqa. A mobi-ticket contains a unique 2D barcode message which is scanned at the entrance. Venues’ customers can now buy mobi-tickets for the events taking place at the three venues from tickets. Tickets.com – United states Short description Mocapay is an integrated mobile payment and marketing platform allowing: “any consumer to link. as well as information about the event.119 . customers of the three arenas also benefit from Tickets@Phone’s instant delivery. Mocapay is a wallet-based method. The arenas will begin delivering event tickets using the new Tickets@Phone ticket delivery method.
while Mobile remittance SMS. and the money is deducted from his account.obopay. Money can be transferred to anyone with a mobile phone in the US Type of service Type of technology Domain Secured through Cost for usage Obopay charges a fee of USD 0. WAP/Internet. The redemption process is a bit complicated though.Mobile payments 2010 .5% charge for adding money from a debit or credit card. IVR Mobile payment .10 for sending money and a 2.120 promotional message. but that could keep costs low. The customer gets a code back. with an additional targeted promotional message. Verizon Wireless is one of the mobile operators that have launched the Obopay Service. Obopay www. the customer gets a mobile receipt. After the transaction is completed. With that.com – United States Short description Obopay is a peer-to-peer mobile payment company enabling cell phone users to send and receive money through their phones via a mobile web browser or SMS. whereas gift cards are easily forgotten. and gives it to the cashier. The phone is a ‘can’t leave home without’. Putting gift and loyalty cards in a mobile wallet is a good idea from a consumer perspective. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential The service was launched in late 2006 Mobile POS SMS M-Payment PIN Not disclosed It seems the consumer is overwhelmed with marketing messages from the service. he gets an additional targeted promotional message. The customer sends the secure pin and gets a Mocapay code.
aspx . The natural speech application recites the payment authorisation code. anytime . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS SMS / Voice M-Payment None Not disclosed Planet Payment The mobile phone is used as a payment terminal. and transfer money through any mobile phone using Obopay's mobile application. Potential Payment BuyVoice www. text message. the method has been commercially available since June .planetpayment. Registered merchants dial a BuyVoice toll-free number.com.Mobile payment services and pilots linking to a bank account is free of charge. merchants can process payments using any telephone at hand.with the ease of voice and simplicity of any phone.121 . The merchant also receives it via email or text message (SMS). in 2009 Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service that offers financial services to mobile phone users. Obopay works on any mobile phone and any mobile operators. After a test period. widget.com/MobileCommerce/paymentbuyvoice. or Obopay. mobile Web. provide customer zip code and sale amount and provide customer's credit card information. The payments platform sends payments directly to the merchants bank account. No terminal is required. inputting their identification number and unique pin number. Additional information Obopay is a service that lets consumers and businesses purchase. Partners Most significantly.United States Short description Payment BuyVoice lets merchants accept credit cards anywhere. pay.
Worldwide Short description The mobile version of the well-known PayPal payment method. Ordering is also possible: when a consumer sees an advertisement with a PayPal Mobile logo.122 2008. Potential The service seems quite far-fetched. PayPal Mobile www. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS.paypalmobile. the transaction is validated.4% plus GBP 0. On the other hand.4% . Sprint Nextel PayPal Mobile is available for person to person payments as well as POS-payments.20. After every transaction initiation. Potential PayPal Mobile offers the online PayPal proposition to the mobile channel. Consumers have to link a debit or credit card to their mobile phone number via PayPal in order to be able to make purchases or P2P payments.Mobile payments 2010 . Also the delivery method of the confirmation code to the merchant does not create an optimal user experience from the merchant side of the equation. downloadable application M-Payment. After confirmation via PIN. he can send a text message to a number provided in the advertorial. For person to person payments. M-Order PIN code Private: none Business: 1. After inserting the PIN. . PayPal already has a potential customer base of 150 million users who already have a PayPal account. the item is automatically sent to his address. Automatic Voice Response.United States. which asks for the PIN-code. the service is more expensive than competing services like Obopay. for receiving payments Partners Additional information PayPal. Payment procedure is complicated and far away from any existing payment experience.3. the consumer is called back via an automatic voice response system.com .
Initially.synovus.cfm?catid=1&subject=22 – United States Short description Synovus customers will have the ability to check account balances.p2pcash.00) and PIN and RECEIVE Confirmation number for Cash STEP 3: Present confirmation number at convenience store and receive cash in local currency Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M-Payment PIN not disclosed none The service is only available for pre-paid mobile phones. register cell phone and PIN # with P2PCash STEP 2: SEND Tel # of Recipient. STEP 1: Purchase a prepaid Debit card and load cash at convenience store in U. The P2P Cash Secure Open Standard guarantees the transfer of cash between any two cellphones worldwide regardless of the carrier or communication network.123 .com – United States Short description P2P Cash guarantees transfer of cash to any cellphone worldwide using a Secure Open Standard (SOS).com/index. Synovus www.. transfer funds and view and pay bills from one seamless platform via cell phones or other mobile devices. Synovus will offer the mobile banking service to a subset of its customer base with a broader rollout planned for later in the year. Dollar amount ($100.Mobile payment services and pilots P2P Cash www.S. Type of service Type of technology Mobile remittance WAP/Internet .
wachovia.com/mobile/ . Wells Fargo Mobile www.com/personal/page/0.00. The service is only available for carriers AT&T and Verizon. Wachovia offers two ways to access your accounts from your mobile device: through a mobile application or through an Internet enabled browser.10_476_12583.United States Short description The Wells Fargo Mobile service enables you to connect to your eligible Wells Fargo accounts via the mobile web or text . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/ Internet M-Banking Username/password None None The mobile banking application offers: viewing account balances and transactions.wellsfargo. make one-time bill payments.Mobile payments 2010 .. viewing eBills. Wachovia Mobile www.124 Domain Secured through M-Banking and M-Payment Six digit PIN on downloadable application Application downloadable via online banking account – after login Cost for usage Partners Additional information Wireless provider fee – no fee for service as such Firethorn The service was announced as early as November 2006. make one-time transfers between eligible accounts. Activation of the service can only be initiated in the secure mobile banking environment.html#application – United States Short description Wachovia Mobile provides a safe and secure way for Online Banking customers to access eligible Wachovia accounts for free.
as with online banking Wireless provider fee – no fee for service as such None Testing the service started in April 2007.Mobile payment services and pilots messaging (SMS) from your mobile phone or other handheld device. You can also transfer funds using the browser function — all from your mobile phone or device. Wells Fargo was the first bank to offer online banking accounts in 1995. The remittance service is only available using the web browser. m-Via www.m-via.com/files/english/main.html – United States Short description m-Via allows users to make international money transfers via any mobile phone from the US to Mexico. The text message service is only used for alerts and balance and history enquiries. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Banking and M-Payment Username password. Mobile remittance SMS Type of service Type of technology . The Wells Fargo Mobile service provides access to any of your eligible Wells Fargo personal or small business deposit or credit accounts. users will also be able to top-up their prepaid accounts as well as pay their bills. You can check account balances and review your recent account activity using the mobile browser or text messaging functions. You select which of your accounts you’d like to access from your mobile phone. m-Via will only be sold via wireless retailers in the US starting from January.125 . South America and the Phillipines using a concierge-type service. Activation of the service can only be initiated in the secure mobile banking environment. On top of mobile remittances.
savings and money market Commerce Bank accounts. view recent transaction activity as well as transfer funds between personal checking.United States Short description The service enables its current online banking users to use webenabled handsets to view account balances. clients can transfer funds from a personal line of credit to a personal deposit account.sizzlemoney.Mobile payments 2010 .126 Domain Secured through Cost for usage Partners Additional information M – Payment Identification at cashing point Not disclosed yet Not disclosed yet Commerce Bank mobile banking www. SizzleMoneyTM employs an SMS-based mobile technology that works on any cell phone and on most cellular networks.commercebank. The . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking WAP/Internet M – Payment Username and password Free Bank: Commerce Bank The service is only available for customer who also participate in Commerce Bank online banking SizzleMoney http://www. Moreover. Users may also transfer funds from a personal deposit account to a Commerce Bank personal loan or credit card to make a payment.com – United States Short description SizzleMoney is a mobile stored value product that enables mobile (cellular telephone) money access. payments and sharing.com/personal/online-services/mobile-banking/ .
zong. Mobile Banking SMS M – Payment PIN A plethora of fees applies. consumers can pay with their mobiles for items such as games.127 . The phone is used as the authorization method. Monthly fee of USD 0. . including: — — — — Person to Person Payments Person to Merchant Payments Money Sharing (Domestic & Foreign) SizzleMoney Card-based transactions (retail purchases using pre-paid/re-loadable card & ATM transactions) Type of service Type of technology Domain Secured through Cost for usage Mobile POS.Mobile payment services and pilots product package includes a pin-based debit card for use at ATM’s and at retail establishments. balance inquiry USD 0. ATM Withdrawal USD 1. avatars. making deposit USD 0.49. Through merchants using Zong. overdraft fee USD 10.99. users click on the logo and enter their phone number. and applications for social networks or mobile devices. All purchases are added to the user’s mobile phone bill or deducted from the pre-paid credit.00. P2P payment USD 0.com/zong – United States Short description Zong is a mobile payment method especially designed to pay online.99. virtual world goods. Users then receive an SMS which contains a 4-digit one-timepassword (OTP).49 for both For a complete list: http://sizzlemoney.com/termscond/fees. To make a purchase from an online merchant.pdf Partners Additional information Technology: Denarii Payments Zong http://www. The user enters the OTP on the website and confirms the transaction. SizzleMoney provides you with full mobile access to money and payment services. Mobile Remittance.49. and the amount spent is charged to the phone bill.
and loyalty) either via standard SMS text messages or directly to NFC-enabled mobile phones. for retailers not dislosed .on-investment calculations.128 Type of service Type of technology Domain Secured through Cost for usage Mobile POS SMS M – Payment 4 digit PIN None for consumers. allowing them to create return. This will provide retailers with straight-through processing and campaign tracking. US NFC m-payments services provider ViVOtech and provider of mobile vouchers platforms Eagle Eye Solutions integrated their services in order to provide a mobile vouchering service for retailers. Retailers can use the Eagle Eye Mobile Interactive (Mi) Voucher Redemption System to identify and transact the vouchers. for merchants: carriers take 25-45% of the transaction as fee. Partners Additional information Zong claims the high fee (30 – 55% of transaction value) is justified because of the high conversion rates these kind of payments have. Zong takes 5-10% of the transaction as a fee.Mobile payments 2010 . Eagle Eye Vouchering United States Short description The Eagle Eye Vouchering service will enable retailers to issue mobile vouchers to customers (promotional. More people leave the sales funnel prematurely because of the difficulty of the payment method. Type of service Type of technology Domain Secured through Cost for usage Mobile ticketing NFC M – Delivery None None for consumers. On top of that. gift. Making this easy increases the share of people in the sales funnel that actually buys and pays for the product.
Type of service Mobile remittance (P2P) Mobile banking Type of technology WAP/Internet . Mobile banking WAP/Internet M – Payment PIN None Type of service Type of technology Domain Secured through Cost for usage Partners Additional information The service is only available for Internet-enabled mobile phones. Zala is an application that uses the large Blackberry display and trackball navigation.com – United States and Europe Short description Zala is a dual consumer-to-consumer and business-to-consumer application which leverages the BlackBerry Enterprise server (BES) and the BlackBerry Mobile Data System (BMDS).129 . Zala www. replenishment amounts and reimbursements.azuremedia.com/index.chase.jsp?pg_name=ccpmapp/shared/assets/page/Chase_Mobile_Banking – United States Short description Chase offers its customers to perform banking activities any time anywhere.Mobile payment services and pilots Partners Additional information ViVOtech and Eagle Eye Solutions Chase Mobile www. enabling person-to-person transactions on a unified communication platform. Is has been optimised for the phone's Web browser so one can bank anywhere the phone goes. restrictions. Zala is designed to help corporate finance administrators to adjust ‘the controls’ on a Zala account including spending limits.
Zala is a virtual bank account that comes with a personalised Visa or Mastercard debit card that can be used for purchases or to access cash from thousands of ATM’s worldwide. Eficash is a mobile application based on a pre-paid model that allows consumers to make and receive payments as well as manage bank accounts by linking their debit.130 Domain Secured through Cost for usage Partners Additional information M-Payment Technology: mFoundry Zala positions itself as a turn-key modular. It is a secure international. Mobile Banking. Users are also sent a confirmation message after each transaction via email or SMS based on user preferences. Mobile Remittance SMS.net – United States. Eficash www. During transactions. the authentication of the user takes place via mobile phone number or user name and password.efici. Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS. credit card and bank accounts to their phone number. 2D M – Payment. mobile financial services platform.Mobile payments 2010 . M-Delivery PIN Depends on operator Technology: Efici . Users have to top up their Eficash accounts before making transactions and have access to their funds through the web or mobile phone. mobile money transfer service that can be used on a mobile phone and on the web. Clients can also use Eficash with phones with integrated cameras to interpret 2D codes and expedite payments. Latin America Short description Eficash is a mobile based e-wallet service for banks and mobile operators in the US and Latin America.
Without such an account. for making transfers ARS 0.3 Latin America Banco Francès Mobile Banking www.com/tlal/jsp/ar/esp/individu/servicios/bancamovil/index.Argentina Short description Banco Galicia. monitor the progress of cheque processing.30 (EUR 0.03).ac8b11d3a58b347fbdcfd986122011ca .Mobile payment services and pilots information 7. pay bills and transfers between accounts of Argentine banks. both excluding taxes. Movistar Argentina The service was launched in February 2007 Partners Additional information Banco Galicia Mobile Banking www. offers it’s customers the possibility to do online banking business via their mobile phone. Banco Francès. First. The system is based on text messaging and users can check their balances. This must be done in the customers’ online banking environment (after logging in). Customers have to enrol to this service via their mobile banking account. an Argentine e-bank.e-galicia. enrolment is not possible.bancofrances.07).jsp Argentina Short description Banco Francs provides its online banking customers with an additional channel to do their banking business: the mobile phone. . consumers have to subscribe to the service by attaching their mobile phone to their online bank account. M-Payment PIN Receiving alerts: ARS: 0.com/portal/site/eGalicia/menuitem.14 (EUR 0. make transfers between own accounts.131 . A link to an application will be sent to the registered phone. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Banking.
By sending a text message.jsp .132 along with an 8-digit password. Mobile remittance SMS M-Banking. After downloading the link. receiving SMS is free. customers can access mobile banking via an 8 digit password on their mobile phone application.09) excluding taxes.Mobile payments 2010 .04). Personal The service was launched in 2006 Type of service Type of technology Domain Secured through Cost for usage .ar/individuos/canales_mobilebanking_ppal_1. Partners Additional information Banca Galicia. M-Payment Username/password (8 digits) None. Movistar.Argentina Short description The SMS banking service permits customers to manage their bank account via their mobile phone. For mobile banking.com. both incoming and outgoing Río SMS cost ARP 0.santanderrio. America Movil The service was launched in 2006 Banco Río www.15 (EUR 0. M-Payment Username/password (8 digits) Depends on the mobile network operator. For Movistar customers. sending an SMS costs ARP 0. extra service to online banking customers Banca Galicia.35 (EUR 0. one needs an online banking account at Santander Río bank and a cellphone capable of sending and receiving text messages. customers can make payments. money transfers and check the balance of their account(s). For Personal customers. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance Internet M-Banking.
Currently. WAP.00) on the months he/she utilises the service. Mobile operator Oi.99 (EUR 1. Mobile remittance. Mobile POS SMS M-Payment A personal password is used to authorise the transaction.Mobile payment services and pilots M-Cash http://mcash. processor. The technology offers automatic debit from the client's current account. approximately 10. CDMA and TDMA for mobile telecommunications and SMS.br – Brasil Short description M-Cash enables clients to purchase products in retail stores with the mobile phone or through the Internet. HSBC bank launched in Brazil a service called M-Cash. There is no SMS cost and the short messages sent for the transactions do not consume pre-paid cell credits. BrasPag Type of service Type of technology Domain Secured through Cost for usage Partners . In November 2006. Additional information Oi Paggo www. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS SMS M-Payment Unknown Unknown The initiative has been launched in partnership with the company M-Cash and Albatroz Participações (a private equity firm).133 .novaoi.com.br – Brazil Short description Oi Paggo is a credit system that allows clients to shop through their cell phones via SMS.com. Client does not pay annual fee but the client does pay BRL 2.000 HSBC account holders use the service but M-Cash management expects it to account for 3% of all electronic transactions by 2009. with no additional cost and is compatible with a wide range of standards including GSM. USSD and IP/XML for data applications.
in association with Paggo. customers can apply for the Samba38 debit or credit card Private Label Samba38 (mobile phone and plastic). The fact that more than 40.134 Paggo. Type of service Type of technology Mobile POS SMS . The service offers prizes to frequent users. there is a definite need for the service in Brazil.000 merchants. In order to gain access to the mobile payment service.Mobile payments 2010 . Mobile remittance is a service especially used by unbanked people. This service is made possible through business agreements with Samba38's financial partners. Point of sales that accept Samba38 payments can use their Samba38 credits to pay other bills along the purchase/distribution chain.samba38. Many of Brazil’s 200 million inhabitants are unbanked.000 merchants also accept this means of payment. the company that operates the payment system Additional information Oi Paggo was launched in February 2006 by Oi.000 to 7. Samba 38 www. The service was developed by Brazilian company Alimutu Technologies Management .000 customers each day.Brazil Short description Brazilian company Samba38 Tecnologia e Servicos offers an SMSbased service which allows consumers to top-up prepaid mobile phone accounts as well as make mobile payments. The service will be used by wireless operators in Brazil covering over 60 percent of the mobile payments market. creating a perfectly feasible market for the service. Oi Paggo had 1 million customers using the service at some 40. the customer receives a small credit directly available in Samba38 credits which can be used via a mobile telephone to make payments.com . a small technology company. is almost unprecedented. If the application is approved. Potential Although the monthly fee seems high. a mobile operator in Brazil. The service signs up about 6. In April this year.
Telemig. The pilot was announced in October 2008. to provide value-added functions. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information No charge to the consumer. The pilot is the first Visa payWave trial in Latin America and the Caribbean and the company plans to launch future pilots. With widespread adoption of NFC-enabled phones still years away the future of NFC-based mobile payments in Guatemala does not look too bright. including mobile account management. Industrial Bank and Uno Bank and is expected to include around 200 Visa cardholders. as well as mobile alerts and coupons. The 6-month pilot was developed in partnership with Compania de Procesamiento de Medios de Pago (Visanet Guatemala). Visanet The pilot is only available in selected fast-food restaurants and cinamas. MNOs: Claro. Industrial Bank.135 . merchant pays an unknown fee Uno Bank. Merchants and consumers will have to be heavily incentivised in order to get them aboard for a commercial rollout – but then the business case is not viable. CTBC. TIM and Vivo Additional information Visa Paywave Guatemala Guatemala Short description Users will be able to pay with their mobile by waving their phone in front of terminals installed in fast food restaurants and cinemas participating in the trial. Only 200 cardholders are invited to participate. Oi. Sercomtel.Mobile payment services and pilots Domain Secured through Cost for usage Partners M – Payment Not disclosed (website offline) Not disclosed (website offline) Technology: Alimutu. Mobile POS NFC M-Payment Potential .
Once registered.html .com/english/index. make money transfers and withdrawals using their Diemo wallet.Mobile payments 2010 .136 Pago Movil Peru Short description Pago Movil is a POS mobile payments service enabling VISA card holders to pay by making a call from their mobile phone. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Movistar.mann-india. section of the site offline. Visanet Mobile payments Call Mobile POS Diemo www. Diemo is short for Dinero en Movemiento (Money on the move). Type of service Type of technology Domain Secured through Cost for usage Mobile banking SMS M-Payment PIN Not disclosed. a division of Megasoft. subscribers can pay bills.Venezuela Short description Venezuelan start-up company Diemo has teamed with provider of service to MVNOs XIUS-bcgi. users can pay by calling the *98 short number and typing in the unique code and amount of the purchase. . to launch mobile banking with GSM network provider Digitel. Visanet then sends a SMS to the buyer's and the seller's mobile phones. With the application.diemo. to confirm the purchase has been charged to the Visa card. Subscribers need to download an application onto their mobile telephone.
when launched later in the year. but mobile phone penetration is about 75%. have a significantly different focus from the Kenyan version. however. XIUS-bcgi is to provide security software for the service. enabling those MFI clients and employees who have received their money via M-Paisa. will enable greater use of M-Paisa by consumers who might otherwise be excluded due to high illiteracy rates in Afghanistan M-Payment Domain Secured through Cost for usage Partners . Potential The mobile banking service is completely new service on the market in Venezuela. client software for each mobile phone and network support.4 Middle East and Asia M-Paisa Afghanistan Short description Vodafone and Afghan mobile operator Roshan have launched a mobile payment system. Type of service Type of technology Mobile remittance Voice. At launch the Afghan service will. USD 15 million contract to provide mobile banking and related services in South America and elsewhere.137 . Most of its citizens are unbanked. This service really fulfils a market need. M-Paisa. with an additional range of business to business. Initially M-Paisa will act as a vehicle for microfinance institutions' (MFI) loan disbursements and repayments. Digitel The service was launched in August 2008 Diemo has signed with XIUS-bcgi for a three-year.Mobile payment services and pilots Partners Additional information XIUS-bcgi. is built on Vodafone's M-Pesa service in Kenya. Consumer person-to-person transactions will also be available. Roshan and Vodafone are trailing interactive voice recognition services which. 7. to use the service.
MasterCard The initiative was announced in February 2007 Filipino migrant workers in Bahrain typically do not have a bank account in Bahrain. Potential SMART MTC Bahrain Short description Bahra and Smart work in partnership with MTC Vodafone Bahrain and a leading bank in the Middle East.Mobile payments 2010 . clearing and settlement partner. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential Mobile remittance SMS M-Payment Codeword for confirmation Not disclosed Smart. Smart plans to launch a pilot project with MasterCard as an authorisation. Mobile money transfer therefore is a good alternative. Although the use of the mobile phone for financial services becomes increasingly popular in third world. Filipino migrants and contract workers can remit funds back to the Philippines using their mobile phones. the M-Paisa service has a very narrow scope. Smart also sees the need for a global hub that will be interoperable with the Smart Services Hub. as for the most part. A bank transfer to send money home is therefore out of the question. Also the illiteracy rate in Afghanistan can constitute a problem. MTC Vodafone. As part of the GSMA program. SSL Wireless Bangladesh Short description SSL SMS Banking is a service that enables Bank's customers to .138 Additional information M-Paisa will be used by organisations such as Afghanistan's The First MicroFinanceBank and FINCA a global microfinance institutions. Through the Smart Services Hub. they are paid out in cash.
The Cambodian initiative was launched by ANZ Banking group and is . it just offers services via an additional channel.wingmoney. Just like American mobile banking methods. have signed an agreement to provide mobile banking services in Bangladesh for all the major telecommunication services providers. Warid Telecom.Mobile payment services and pilots access their accounts through SMS. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS M-Banking PIN Not disclosed SSL Wireless. Aktel. Banglalink.Cambodia Short description WING is a mobile phone enabled payment service that allows customers and businesses to transfer. Grameenphone. CityCell and TeleTalk. SSL SMS Banking allows Bank’s customers to access information and perform certain transactions on their account by using their mobile phone to send SMS in a predefined format to assigned short codes like 6969 for example. CityCell and TeleTalk. Banglalink. pay utility bills by customer’s mobile phone.139 . Warid Telecom. customer notifications. The possibilities are: Account balance enquiry. mini statement requests. Bangladeshi Mobile services provider SSL Wireless and Islami Bank Bangladesh. a private banking and financial institution in Bangladesh. Additional information Potential Wing Money www. order for money transfer from customer’s one account to another within the bank. Islami Bank. but the Bangla Deshi method is not for free – a major inhibitor. The service is an additional channel to the yet existing banking channel.com/en/company-profile . Aktel. deposit and withdraw money between each other via their mobile phones. including Grameenphone. The service was launched in August 2008.
Mobile banking SMS M – Payment 4 – digit PIN EasiRemit www. Mobile remittance SMS M-Banking Type of service Type of technology Domain Secured through Cost for usage Partners Not disclosed OCBC Bank / China Unionpay is the only National Bankcard Association in China.com – China and Singapore Short description OCBC Bank and China Unionpay collaboration on remittance.chinaunionpay. Dongguan Rural Credit Cooperatives Union. Customers can use the WING Cash Xpress to cash in or cash out as well as to purchase goods and services.140 based on SMS technology. a new remittance service available via OCBC Mobile Banking as well as OCBC ATMs is the first real-time remittance service to China and OCBC Bank is also the first and only bank in Singapore to tie up with CUP to offer such a remittance service. EasiRemit will be launched with four CUP member banks namely Bank of Shanghai. instead of the usual three to five days’ waiting time that conventional Additional information .Mobile payments 2010 . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS. but nevertheless have important financial service needs. The beneficiary also enjoys the convenience of having the money credited immediately to his bank account in China. WING is targeting those Cambodian customers who are generally un-banked. Fujian Rural Credit Union and Hunan Rural Credit Union. EasiRemit.
It is the first real time service in its kind.Banking PIN Depends on technology used and financial services provider MNO: China Mobile. Financial: China Union Pay. including inactive accounts. bridging the Singapore . USSD. it has a valuable competitive advantage is high reach and real time transfers. Bank of Communications.umpay.Mobile payment services and pilots remittance services typically require.o. HSBC The service ONLY works for China Mobile subscribers – over 450 million in number. Additional information .Chinese remittance gap. Construction Bank of China. NFC M – Payment.141 . the world's biggest mobile carrier in terms of subscriber numbers (415 million customers).: Bank of China. prepaid mobile wallet. NFC-based POS payments Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance. The costs associated with this service are not disclosed yet. The different UMPay services claim to have an aggregated amount of 100 million users. M . The Chinese m-payment market is dominated by UMPay. IVR. These options include: micropay (charged to the telephone bill). a joint venture between an inter-bank credit card organisation China UnionPay and mobile operator China Mobile. Agricultural Bank of China. Participating banks: 19.com/englishumpay/index.htm – China Short description UMPay offers financial institutions in China a mobile payments platform allowing for several mobile payments options. UMPay www. Potential With a large Chinese community in Singapore. but if it is in the range of traditional methods. UMPay’s main mobile payment service has reached over 40 million registered users. WAP/Internet. Mobile POS SMS. Since it was launched in 2004. a.
com – China Short description Chinese online payment services provider Alipay and MNO China Mobile enable China Mobile users in the Zhejiang province to carry out m-payments for items such as new handsets or text message news updates.mchek. mobile phone users will be able to make transfers and buy goods of up to CNY 200 (approximately EUR 22) per transaction. The service was launched.alipay. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information mChek www. In order to make m-payments via Alipay.142 Ali M-Pay www. Alipay has closed a similar deal with another Chinese carrier China Telecom. mobile remittance SMS.com . Mobile POS. users will need to link their mobile number to their Alipay accounts and configure their mobile payment service. China Mobile Type of service Type of technology Domain Secured through . WAP M-Payment User PIN Mobile POS SMS M – Payment 4 digit PIN None Alipay. following more than a year of internal testing.India Short description mChek is a broad mobile payments solution linked to the consumer’s credit or debit card that can be used for remote as well as point of sale mobile payments as well as mobile remittance. By sending SMS commands to a specific number.Mobile payments 2010 .
Mobile payment services and pilots Cost for usage Partners Additional information Free Obopay India India Short description Mobile P2P money transfer and remittance services provider Obopay has signed up with six banks and three mobile phone providers for its formal entry into the Indian market. Both the subscriber and the Merchant will get confirmatory SMS messages from OxiCash with . OxiCash users can also pay in remote places without GPRS.oxicash. Tata sky and DishTV recharge coupons. The amount will get debited from your OxiCash wallet and credited in favour of the Merchant.in – India Short description OxiCash enables users to buy recharge PINs for a multitude of services such as Prepaid Mobile Phones. Air –Rail –Bus tickets. Telephones. etc. Additional information Oxicash SmsPay www. WAP/Internet M-Banking MPIN (mobile PIN) None The banks that have currently tied up with Obopay are. and Yes Bank (YES). Oxicash acts as a prepaid wallet. Kotak Mahindra Bank (KBL). Electricity and Water bill payments.143 . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS. Development Credit Bank (DCB). shop online for apparels.
mobile payments in a country that has not yet gotten used to cards.com/viewsection.691 – India Short description In the process of providing banking facilities in un-banked regions of India.jsp?lang=0&id=0. this pilot was turned into a national roll-out. Potential State Bank of India mobile banking http://www. Why use mobile payments in a cash-based society if you can pay by cash? Why accept these payments if it costs you more than accepting cash? The system works perfectly fine for online transaction. In June 2008.Mobile payments 2010 . which is expected to expand to 250.statebankofindia. State Bank of India.144 transaction details and amount. but at the POS. The customer will . might very well be a bridge too far. Mobile POS SMS M-Payment User PIN Free for consumer.21. merchant charges not disclosed Oxigen The service started in July 2008.000 by 2010. Oxicash plans to distribute these services to Oxigen’s pan-India retail network of approximately 50. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M-Banking PIN Not disclosed Airtel. Spanco Telesystems Three wrong MPIN entries will block the MBS to the account for the day and two consecutive blockages will remove the data from the mobile banking application in the handset. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance.000 touch points. Airtel and State Bank of India pilot a project in the Himalayan village of Pithoragarh.1.
should he/she desire to continue to avail the services from the State Bank of India.yesbank.Mobile payment services and pilots have to re-register for the service following the registration process explained above.India Short description Pay Anyone is a cooperation between Yes Bank and American Obopay.000 customers who are using the bank’s mobile payment services throughout the country. 5000.in . Technology: Obopay Citi NFC trial Bangalore India Short description An NFC trial where trial users are equipped with NFC-enabled phones to make purchases and to pay for public transport.145 . the bank offers its clients a mobile payment service called 'Person to Person'. (EUR 500) Pay Anyone www. among others. The .00. Yes Bank currently has 5. 25. which gives Yes Bank customers the possibility to send money only between Yes Bank accounts through Obopay’s mobile payment service. Pay Anyone enables Yes Bank customers to transfer money between Yes Bank accounts as well as between Yes Bank accounts and other banks’ accounts through their mobile phones. Mobile Remittance SMS M – Payment Username and password Free during trial – remittances against a fee. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. At present. The upper ceiling per transaction limit shall be Rs. not disclosed Bank: Yesbank.00 (EUR 100) within an overall calendar month limit of Rs.000. the new service enables users to book tickets and pay for mobile top-ups. On top of money transfers.
Mobile ticketing NFC M – Payment.co.Mobile payments 2010 . the customer needs a javaenabled mobile phone with a GPRS connection. To use Citi Mobile banking service. Citi Mobile works with the customers’ 16-digit debit/credit card number and existing IPIN.India Short description The Citibank M-Banking India solution allows customers to view account details. M-Delivery Embedded Openi Bank: Citigroup Citibank M-Banking India www.in .citibank. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking WAP/Internet M – Payment PIN None Bank: Citigroup . The application can be downloaded by sending an SMS.146 trial started in April 2009. pay bills and make requests. The service is free of charge.online. transfer funds. Citi Group’s aim is to collect enough data on consumers’ use of mobile phones ready for contactless payments to demonstrate to handset manufacturers and carriers that including NFC in phones would be worth the investment.
the user gets a confirmation SMS which completes the purchase. The service is available for customers of 14 banks in India. subscribers are able to pay utility bills. Users can check their credit balance.nttdocomo.co. PayMate can be used with online and offline merchants. pay for movie and flight tickets and make person-to-person money transfers.com – Japan Short description The Osaifu mobile phone can be used as a wallet. Nepal. Nepal: Nepal Telecom Banks: Bank of Ceylon (Sri Lanka). After initiating a transaction. monthly utility bills. FeliCa Mobile www. Paymate plans to add P2P remittance to the service. The system can also be used to pay bills. ID card or a key to the home. Everest Bank (Nepal). pay for retail purchases.in – India. Upon registration. and purchase history on the mobile phone screen. which is used to authorise transactions. Sri Lanka Short description Indian mobile payments provider PayMate enables its clients to send and receive money.000 (EUR 30).Mobile payment services and pilots PayMate India www. 1 bank in Sri Lanka and 1 in Nepal. he will receive a fourdigit PIN. credit card. Via PayBill’s SMS-based service. requesting a PIN. 14 banks in India Additional information The transaction limit is IRS 2. After that. point totals.147 .000 merchants on the Indian subcontinent. After a successful PIN entry. The service can be used to pay online as well as to pay at 13.paymate. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS Call/Voice and SMS (confirmation) M – Payment 4 digit PIN None for end consumer MNOs: MNO-independent in India. the end user receives a call back from an automated IVR. a consumer has to link his PayMate account to a bank account or credit card. . flight & movie tickets.
. In addition to facilitating remote payments.kddi. is a service compatible with 'EZ FeliCa'. the NTT DoCoMo phones enable consumers to use their devices as a substitute for cash and cards at vending machines and merchants’ points of sale.Japan Short description 'Osaifu Keitai'. ‘Edy’ electronic money. The mobile phone service ‘EZ FeliCa’ uses ‘FeliCa’ non-contact IC card technology for applications such as ‘QUICPay’ mobile credit. and East Japan Railway's ‘Mobile Suica’ fare collection service. Mobile ticketing. Mobile ticketing NFC M-Payments Embedded Type of service Type of technology Domain Secured through Cost for usage Partners Additional The number of subscribers to au 'Osaifu Keitai'.148 and use the i-mode network to add e-money credit. mobile POS NFC M-Payment SIM KDDI au's Osaifu-Keitai ‘EZ Felica’ www. Mobile Suica also works as e-money for purchases at stores. download tickets. The Mobile Suica application can be used to pass through automatic ticket gates at train stations. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information NTT DoCoMo’s Osaifu-Keitai mobile phones equipped with FeliCa contactless IC chips.html . There are discount bonus points and other special privileges exclusively for OsaifuKeitai-users. or pay for products and services. FeliCa is a contactless IC card technology developed by Sony Corporation.com/english/value/au/index. turning KDDI au mobile phones into mobile wallets.Mobile payments 2010 . 'EZ FeliCa'.
Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Banking. and Softbank).7 billion) in deposits. At 'EZ FeliCa site'. and conduct location-based searches for shops which provide the 'Osaifu Keitai' service. NTT DoCoMo. credit card services and insurance offerings. In June 2008.5 trillion (EUR 10.Mobile payment services and pilots information exceeded 10 million on November 25 2007. internet. and 3. users can check out information related to 'Osaifu Keitai'. and phone (IVR/operator) banking. Bank of Tokyo-Mitsubishi UFJ and telecoms operator KDDI announced that their mobile internet banking joint venture has been licensed by Japan’s Financial Services Agency. The New Bank (Shinginko in Japanese. KDDI will actively continue to expand services for 'EZ FeliCa' to meet the diverse needs of customers. as well as shop online with their handsets.149 . In the future. the service will include foreign currency deposits. such as the purchase of train tickets and commuter passes. M-Payment Username/password Transfers between two Shinginko accounts or between a Shinginko bank account and Bank of Tokyo-Mitsubishi UFJ account are free of charge Bank of Tokyo-Mitsubishi UFJ. 'EZ FeliCa' is a service that can be used in a variety of situations. meaning 'New Bank'). offers a full line-up of financial services oriented to individual Partners Additional information . credit cards. The company has been accepting applications since August 2008. Shinginko Japan Short description Shinginko (formerly known under the name of the pilot Jibun) offers banking services through three channels: mobile (through KDDI's au.4 million in the fifth year as well as JPY 1. KDDI telecom The aim is to reach 2. and membership verification.4 million account holders by the third year. or as e-money. Users will be able to make payments to the accounts of anyone in their mobile phone’s address book.
membership card and point card services.Mobile payments 2010 . bill payments. mobile remittance SMS M – Payment Username – password Opening account is free of charge.jp/mb/en/service/advanced/sfelica/ . The service is based on SMS technology.softbank. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Softbank Mobile ticketing NFC Mobile payment Embedded Viva M-Pay Kuwait Short description Viva offers users access to services such as top-up. S! FeliCa http://mb. Technology: Macalla. The service will be available in Arabic and English directly to Viva subscribers as well as via authorised dealers. such as for transportation and commutation ticketing. credit card.Japan Short description S! FeliCa’ is a ‘Osaifu-Keitai’ (mobile wallet) service that lets customers use their handsets in a variety of ways. Mobile banking. mobile banking and international remittances. Turnkey Technologies Type of service Type of technology Domain Secured through Cost for usage Partners Additional . electronic money shopping. other fees not disclosed MNO: Kuwait Telecom Company.150 consumers. money transfers. capitalising on the strengths of the mobile phone.
Partners Additional information Mobile Visa Wave Payment Malaysia Short description In the pilot. DiGi updates both sender and receiver via SMS on each transaction. but with the built-in Visa Wave function. . Citibank The service was launched in October 2007 with Citibank. participants will be issued with a Nokia 3220 phone pre-programmed with their regular Maybankard Visa Wave card information. The signing up takes one day.digi. it can also be used to wave and pay at Visa Wave merchants. Potential The service competes with traditional remittance services like bank transfers and Western Union. especially on the recipients side than bank transfers. With two text messages users can complete a transfer.com/my . Digi Remit wallets can be topped up at authorised outlets across Malaysia or via Giro transfer from any bank account.Malaysia Short description To transfer money from Malaysia to Bangladesh. Remittances can be sent to anyone in the destination countries. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Payment PIN The fee starts at MYR 8 (EUR 1. depending on the mode of delivery in the receiving end. It operates as a standard mobile phone connected to the Maxis network. Indonesia and the Philippines via SMS. The fees for DiGi Remit are slightly lower than traditional remittance services and have a higher reach.151 .64) for all the three countries. with or without bank account.Mobile payment services and pilots information DiGi Remit www.
South Korea and Taiwan play a far greater role in every-day life than in Europe and North America. building on the existing contactless platform. such as the Asia/Pacific. Visa Launched April 2006 A large-scale NFC initiative. OneSMART PayPass provides Malaysians with a fast and convenient way to pay for their small everyday purchases. with five issuers and four acquirers of Visa Wave transactions Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential Mobile POS NFC M-Payment PIN (not always needed) User: none. merchant: credit card charge Maybank. Singapore. PayPass allows cardholders to “tap & go” at merchant outlets around the world that are equipped with PayPass readers. Maxis Communications.500 outlets and 160. Malaysians (at least those living in Kuala Lumpur) are already used to NFC cards for they use it in public transport of the capital.152 Visa Wave is EMV-based and uses the strongest EMV authentication .dynamic data authentication (DDA) .for all transactions. to reap the speed and convenience benefits offered by contactless payments. in Malaysia. enabling regions where EMV smart cards predominate. This enhances adoption. Japan. .000 cards. OneSMART PayPass Malaysia Short description OneSMART MasterCard PayPass is the industry’s first internationally accepted contactless EMV payment solution. Also. PayPass combines both contact and contactless interfaces on one chip.Mobile payments 2010 . Mobile Visa Wave payment in Malaysia combines NFC (near field communications) with Visa Wave contactless card technologies. Mobile phones in countries like Malaysia. which amounts to 2. aimed at a tech-savvy nation.
153 .000 contactless payment touch points throughout Malaysia. highway toll gates and car park facilities at more than 3. Once the account has been personalised on the phone. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS NFC M-Payment PIN (not required for each transaction) No charge for the consumer. Maybank Visa account holders need to download their Visa payWave credit account details to their Nokia 6212 classic handset over the Maxis wireless network. bus terminals. including a contactless transit application. Nokia. Type of service Type of technology Domain Mobile POS.my – Malaysia Short description Malaysian mobile operator Maxis.maxis. PayPass subscribers from other nations can use the Malaysian system too.Mobile payment services and pilots The system is globally interoperable with other PayPass systems. To access the service. Maybank and Visa have launched the Maxis FastTap NFC m-payment service. Merchant charge not dislosed MasterCard. This feature enables Malaysian commuters to pay for charges while using metropolitan transit systems.com. As part of the service. Maxis FastTap www.800 merchant outlets that currently accept Visa payWave in Malaysia. Mobile Ticketing NFC M – Payment . Maxis offers its customers the Visa payWave –enabled Nokia 6212 classic handsets. account holders can make purchases at any of the 1. Smart Card Alliance The payment method was launched in February 2006 in Malaysia PayPass transactions are said to be just as safe as traditional payment card transactions. The contactless chip embedded in the device also powers a number of additional functions.
php . but has not been established yet. loans. CEO of XacBank Ganhuyag Ch. Other: Nokia XacBank Mobile Banking http://technology. M-Payment PIN not known yet CGAP and XacBank The initiative was announced in July 2008. CGAP is supporting XacBank with technical assistance and funding.154 Secured through Cost for usage Partners Additional information SIM None during trial MNO: Maxis. a provider of development finance in Mongolia.mobilinkgsm. XacBank expects the service to reach out to as many as 300.Mongolia Short description XacBank. the consumer needs an Mobile remittance SMS M-Banking.cgap. Commenting about the launch. Visa.com/genie/index.Pakistan Short description Mobilink Genie is Pakistan’s first service to offer the ability to pay bills.000 Mongolians (out of 2 million).org/category/projects/mongolia-xacbank/ . and cash transfers to rural locations. remittances. while on the move. Hutagt said he hopes that XacBank will be able to make it affordable for some of the 40 percent of Mongolians who only use cash today to embrace mobile banking. Financial: Maybank. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobilink Genie www. .Mobile payments 2010 . withdrawals. The new service will expand the availability of deposits. In order to subscribe to the service. Mobilink Genie ties the consumers’ credit card and bank account to their Mobilink connection. has partnered with global microfinance body CGAP to launch a new mobile phone banking service.
its subsidiary G-Xchange and global moneytransfer services provider Western Union will join forces to introduce the GCash cross-border mobile money transfer service in the Philippines to support low-principal. Genie PIN and bank card PIN For downloading the application. G-Cash www.e. cash to and from other users. Interestingly. Citibank Pakistan.aspx?rand=192 .00 (EUR 0. transfers of airtime from one user to another. airtime top-up). Utility bill payments have a fee of PKR 20 (EUR 0. KASB bank and Atlas Bank Users can subscribe through Mobilink or through one of the participating banks.02) per GCash transaction .com. standard GPRS rates apply.Philippines Short description Globe Telecom. G-Cash’s main functions are cash deposit and withdrawal (accompanied by ID. transfers of credit to the prepaid account (i. as well as standard SMS fees.Mobile payment services and pilots internet/wWAP enabled mobile phone.e.ph/main. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Payment Consumer number.g-cash.20) Partners Additional information Mobilink. high-frequency remittances. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Payment PIN Minimal charge of PHP 1. at Globe offices and participating retailers). bill payments and inbound international remittances. cashless purchasing. without physical ID verification.155 . registration for the GCash service can be activated over-the-air (OTA) i.
SMART Wireless Centres or SMART Padala outlets.Mobile payments 2010 . Once connected to the Western Union service. Globe Telecom offers the G-Cash service with an electronic wallet feature that allows users to send and receive cash and make payments including bill payments. SMART Money Philippines Short description It is a facility for linking the subscriber’s mobile phone with an emoney ‘cash’ account that is accessible from the mobile. also abroad. from that ‘cash’ account or other bank accounts. RheSmart money cars can used as a debit card to pay for goods and services at retials hsops and restaurants or to make withdrawals from ATM’s. Loading physical cash onto the SMART Money account can be done at SMART’s m-banking partner Banco de Oro branches. withdraw cash or top up the phone’s prepaid credit levels. The service allows users to transfer cash from one Smart Money card to another.000 (EUR 800) Mobiel phone company Smart and MasterCard Type of service Type of technology Domain Secured through Cost for usage Partners Additional information . The customer can also transfer prepaid credit or cash to another user. The functionality allows a user to deposit cash. operators will be able to use their own mobile wallet software to enable person-to-person mobile money transfers over Western Union's cross-border remittance network. The service enables consumers to transfer money to or from mobile wallets and will offer a global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions. Mobile remittance SMS M-Payment PIN 1% of transacted amount with a cap of PHP 50. donations and online purchases via texting.156 Partners Additional information None G-Cash was introduced by Globe Telecom in October 2004.
turning mobile phones into payment devices that are accepted at EZ-link terminals on buses and trains and at retail locations that accept EZ-link payments Mobile POS NFC M-Payment Type of service Type of technology Domain Secured through Cost for usage Free during trial . Saudi Arabia-based Filipinos are able to send funds directly to their beneficiary's Smart Money account through NCB's Quick Pay Remittance Service channels such as phone banking.Mobile payment services and pilots Smart bank service Saudi Arabia Short description The Quick Pay Remittance Service is NCB's remittance offering which will utilise Smart Money as the beneficiary account for funds sent to the Philippines. Type of service Type of technology Domain Secured through Cost for usage Partners Not disclosed Philippine operator Smart Communications has partnered with Saudi Arabia's National Commercial Bank (NCB) to jointly launch an international remittance service utilising the Smart Money platform. Additional information Mobile remittance SMS M-banking EZ-link Singapore Short description EZ-link card has been integrated into mobile phones in Singapore since September 2007. over-the-counter transactions at NCB branches and fund transfers via the bank's ATMs. cash deposit machines. internet banking. remittance centres.157 .
Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS NFC M-Payment PIN Not disclosed SingTel. SingTel www. .com . which are loaned to the trial users for six months.Mobile payments 2010 . Over-the-Air (OTA) payment. including NFC mobile payment wallet.singtel. Network for Electronic Transfers Singapore (NETS) and United Overseas Bank (UOB) have launched an NFC mobile phone payment trial in Singapore. They were able to tap their phones to pay for bus and train rides as well as items at McDonald's and 7-Eleven convenience stores. VivoTech The service was launched in September 2008.Singapore Short description Mobile operator Singapore Telecommunications (SingTel). coupon delivery and redemption. UOB. NETS. SingTel users can download a SingTel wallet application that will allow them to store and top up value on the mNETS payment application in their phones at any time. Users are able to make payments using NETS FlashPay by flashing their SingTel mobile phones at more than 500 participating merchants in Singapore. kicked off October 2007. The companies utilise technologies provided by US company ViVOtech.000 participants use their phones like electronic wallets. About 20. It saw 1.158 Partners Additional information StarHub and EZ-link This launch of one of the largest public trials of such mobile payment technology.000 ez-link machines can read these special made-inSingapore phones. The trial introduces a Stored Value Purse on NFC mobile phones and OTA servers to enable downloading and top-up of stored value accounts on the NFC phones. each one equipped with ViVOpay 5000 NETS FlashPay contactless terminals.
The service allows users to open a coupon on their NFC-enabled phones and flash it to a NETS FlashPay reader for automatic redemption. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS NFC M – Payment PIN None during trial MNO: M1.Mobile payment services and pilots information Topping up of the mNETS card is performed over the air anytime and anywhere from the phone after registration of a SingTel-UOB credit card. which are embedded with a computer chip that contains their credit card details. The SingTel wall also comes equipped with an electronic coupon application that provides SingTel customers discounts and other incentives and freebies. M1 Mobile Payments http://m1.com/sg/M1site/M1Corp . Trial participants can pay for purchases of up to SGD 100 (EUR 50) at over 400 merchants by tapping their phones against a wireless payment terminal. Singapore’s government announced plans to create an agency to regulate mobile payments services. which started 1 April. .Singapore Short description Citibank Singapore. Financial: Citibank Singapore. Three hundred Citibank Visa cardholders which are also M1's subscribers take part in the trial. Participants in the trial have been given NFC-based mobile phones. It will also make sure mobile payments systems are compatible with similar systems which will be rolled out in future. Visa and Singaporean mobile operator MobileOne (M1) launched a three month NFC m-payments trial. The authority is due to ensure the security of all sensitive financial information being transmitted wirelessly. Visa In February.159 .
including wireless credit card transactions.keb. mobile remittance WAP/Internet M-Payment Security card Fee: A/C transfer to other banks: 500 Won South Korea Kookmin bank.South Korea Short description In 2003. The Bank On service enables Kookmin Bank customers to transfer and withdraw funds.kr . K-merce http://english. wireless Internet banking. shopping. Kookmin Bank and LG Telecom began providing banking services via mobile phones.Mobile payments 2010 . and obtaining discount coupons and reservations Type of service Type of technology Domain Mobile Ticketing NFC based: integrated circuit (IC) chip/ RFID M-Banking M Payment Secured through Cost for usage Partners Additional information None Free .South Korea Short description KT Freetel offers K-merce. a financial chip should be installed in an exclusive mobile phone enabled to be installed with the chip.co. Called Bank On.ktf. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing. as well as pay transportation fares through their mobile phones. LG Telecom In order to use BankOn mobile service.com/eng/ . which enables financial transactions from the mobile phone.160 BankOn www. view account balances.
sktelecom. integrated. Cost for usage Partners Additional information SK telekom: Moneta and M-bank services The Moneta card is a service that enables you to conveniently and safely pay for items and services by means of a chip attached to the cell phone that contains all the functions of credit. participants will be issued with a Nokia 3220 phone pre-programmed with their regular Maybankard Visa Wave card information.161 . e-cash. The Moneta IC chip is attached to a mobile phone and has post payment transportation card functions for use with mass transit in Korea.com . it . financial investment and insurance. account numbers and security card information provides extra safety.Mobile payment services and pilots Moneta www. credit card or e-cash by means of a mobile phone equipped with an IC chip. Mobile remittance NFC M-Payment For mobile banking: a 3-tier security system using PIN numbers. Type of service Type of technology Domain Secured through Mobile POS. Moneta also offers users the individually-tailored services and advice of financial experts.South Korea Short description As a wired and wireless. Moneta provides a wide diversity of useful finance-related content and information on stock trading. Tesco Visa Wave Trial South Korea Short description In the pilot. Moneta Bank is a mobile financial service that allows you to complete various financial or banking transactions as you would with a cash card. total financial service that can be conveniently used via the web or mobile phone. transportation card and membership card. but with the built-in Visa Wave function. membership and cash cards. One single chip handles all the functions of a credit card. It operates as a standard mobile phone connected to the Maxis network. transportation.
transactions only work when the Mobile Visa Wave phone is in close contact with a terminal. make money transfers.for all transactions. . 9% increase in POS spending and a reduction in dormant merchants. the service will be available for all seventeen domestic banks. UbiTouch users will be able to check account balances. To address security concerns. Among results to date are a 27% higher activation rate. merchant: credit card charge Tesco. KTF Ubitouch Mobile Banking http://english. Subscribers can withdraw money by touching their mobile phone to one of the 39.000 cards. LG Card is South Korea’s biggest card issuer. which amounts to 2. ensuring that cardholder data cannot be intercepted between card and terminal. except Shinhan Bank. Additionally. It is a one-chip solution enabling access to multiple banks.Mobile payments 2010 . and one in four Visa cards In Korea has a transit application.162 can also be used to wave and pay at Visa Wave merchants.500 outlets and 160. Ubitouch is connected to the user’s credit card.com/eng/ – South Korea Short description Korean operator KTF will launch its UbiTouch mobile banking service. Manners says. with five issuers and four acquirers of Visa Wave transactions Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS NFC M-Payment PIN (not always needed) User: none. Initially.ktf. Samsung.dynamic data authentication (DDA) . and also make deposits and withdrawals. Visa Wave is EMV-based and uses the strongest EMV authentication . Mobile Visa Wave payment in Malaysia combines NFC (near field communications) with Visa Wave contactless card technologies. Motorola Banks have been issuing combined payment and contactless cards for several years. building on the existing contactless platform.000 ATMs on which the UbiTouch mark is shown. LG Card.
M-Delivery PIN (not always needed) User: none. which includes the world’s first MasterCard PayPass chip combicard (combination of a contactless card and normal card). Type of service Type of technology Domain Secured through Cost for usage Mobile Banking Internet M – Payment PIN None charged by MNOs. Ubitouch is the first one-chip multi-banking system. It requires an application download on the mobile phone. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing NFC M-Order. LG Telecom. Taiwanese government. SK Telecom. merchant: credit card charge MasterCard.Mobile payment services and pilots The system uses an ID-sensor. Kaohsiung Transport Launched in October 2005. . Customers can check in and check out using NFC. Use is subject to normal charges from financial institutions. Partners Additional information m-Ticketing Transportation Kaohsiung Taiwan Short description The mobile ticketing TaiwainMoney Card is an e-ticketing card. Banks: All South Korean domestic banks except Shinhan Bank KTF has plans to further increase use to global markets in accordance with the Bank of Korea’s regulatory-standards approval. Registering account information is found into an USIM chip built into mobile phones and users secure money transfers and cash withdrawals using passwords.163 . The Taiwanese government commissioned the pilot. South Korean operators SK Telecom and LG Telecom also plan to adopt the same service soon. Download of the application is free MNOs: KTF.
tmbdirect.html . At the user’s request.mpay. clients can view account summary that dates back as long as nine months as well as monitor their accounts. which require 128-bit SSL encryption and a special security system for mobile phones to ensure full encryption during usage.th/web/CT_what_general. Mobile POS WAP/Internet and IVR M-Payment PIN Free for consumers MasterCard. .co.164 Advanced MPay www. electricity bills and mobile phone bills. Visa. Moreover. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance. TMB M-Banking www. online music. Bank of Asia Advanced MPay is a 70:30 joint venture firm between the Thai cellular market leader Advanced Info Service and Japan’s NTT DoCoMo. a mobile payment system that enables the clients to pay bills. TMB Bank's ATMs or branches nationwide. TMB M-Banking users benefit from the bank's two-factor authentication systems. TMB’s savings and current account holders may apply for TMB M-Banking through tmbdirect. TMB M-Banking clients can pay bills for various services and products such as credit card. The application is free. and games. as well as credit card or direct debit. Kasikorn Bank.Thailand Short description Advanced mPay offers mPAY. SMS alerts can be sent to inform the client when a money transfer is completed. Other features include cross-account and cross-bank money transfers.Mobile payments 2010 .Thailand Short description Through TMB M-Banking.com. buy movie tickets. Bangkok Bank.com . It allows its clients to pay for products and services using mobile wallet mCASH.
coupons and direct marketing. Industrial Bank. Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS NFC M – Payment 4 – digit PIN Free during trial period (until 30 June 2009) Visa.com/kcyber/login. The Visa payWave-enabled transactions are protected with the same security layers used for all Visa transactions.kasikornbank. Nokia .165 . Visanet The service was launched in October 2008 Kasikornbank Visa trial https://ebank.Thailand Short description Visa and Thai Bank Kasikornbank participate in a mobile payments trial using Nokia's 6212 NFC-enabled handhelds in Thailand. The service enables bank users to upload their Visa accounts onto the Nokia 6212 handset which contains Visa’s payWave contactless application.Mobile payment services and pilots Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Banking 2 factor authentication No charge to the consumer. merchant pays an unknown fee Uno Bank. This will allow Kasikornbank customers participating in the trial to make purchases at more than 1. Clients will be able to make mobile payments by waving their mobile phone over the Visa payWave contactless readers at the point-of-sale (POS). Kasikornbank.000 payWave merchant locations in Thailand. On top of contactless payments. Purchases will be charged directly to the customer’s Kasikornbank Visa credit card account. the Visa payWave platform offers over-the-air personalisation.html .
166 information Bankararasi Kart Merkezi Turkey Short description Turkey's national card switch and clearing centre BKM (Bankalararasi Kart Merkezi .Mobile payments 2010 . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment SIM Unknown. but the first to aim at interoperability between different banks and different mobile network operators. pilot participants pay no fees Bank: nine Turkish banks MNO: two of the three Turkish MNOs Trusted third party: BKM Additional information The trial is the second NFC trial in Turkey. Venyon is responsible for loading and updating the application and user data on the SIM card via secure OTA services Type of service Type of technology Mobile POS NFC . 2008 a Near Field Communication (NFC) trial for mobile payments. with nine banks and two of the country's three mobile operators already on board. A contactless MasterCard PayPass credit card application is stored on the SIM card as a secure element. BKM will act as the Trusted Services Provider. Turkcell Turkey Short description Turkcell and Garanti Bank have launched on January 16.Interbank Card Center) is planning a January launch for a year-long pilot of an independent near-field communication (NFC) infrastructure.
using username/password.html . The log-in procedure is similar to online banking. some 100 Turkcell and Garanti employees and customers will be provided with an NFC-enabled mobile phone. Venyon.United Arab Emirates Short description Dubai bank mobile banking allows Dubai Bank internet banking customers to do their online banking on their mobile telephones. Giesecke & Devrient Additional information In the trial. Dubai Bank Mobile Banking www.Mobile payment services and pilots Domain Secured through Cost for usage Partners M-Payment SIM Unknown. The adjusted online banking website is now available via mobile internet. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Banking Username/password None None The service was launched on October 27 2008 Du and Dubai First NFC trial United Arab Emirates Short description In May 2009 the two parties started a six-month NFC trial in Dubai. pilot participants pay no fees Bank: Garanti Bank MNO: Turkcell Card: MasterCard Technology: E-Kart.ameinfo.com/173078. Some 3. The service is a first in the UAE.000 merchants already have a contactless card terminal and are also able to accept mobile NFC payments. Consumers link their credit card to their NFC enabled .167 .
incorporating additional partners. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information MNO: Du. Also. transfer funds and top-up mobile phone credit. the bank recently introduced and IVR self-service and automated bill payment system with telecommunications operator Etisalat. among others.html . The bill payment system enables customers to pay their Etisalat bills directly from their debit or credit cards.standardchartered.168 phone and can make payments at 250 locations at The Walk shopping promenade. Existing I-Banking customers can use their username and password to access the mobile banking service.United Arab Emirates Short description The service works with all mobile phones and enables users to view bank account and credit card details. Bank: Dubai First Mobile payments NFC Mobile payments Standard Chartered Mobile Banking www. The parties expect to subsequently launch it commercially.Mobile payments 2010 .ae/personal/home/en/index. . The service comes on the heels of an upgrade to its I-banking application. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking WAP/Internet and IVR M – Payment Username / Password None MNO: Etisalat The service is only available for Internet-enabled mobile phones and can be seen as an add-on to the already existing internet banking services the bank offers.
While making payments. The service’s security is ensured through a 2-factor PIN authentication over interactive voice response (IVR) and banking grade data security (PCI-DSS 1.2 certified). the amount will be charged directly to a customer's credit card or bank account (in the case of PayMate registered users). To use the service. payments are authorised using a 4digit PIN chosen by the user.Mobile payment services and pilots Mashreq Paymate Banking www.mashreqbank. The service enables clients to use their mobiles to purchase products from retailers (POS or online) as well as pay their utility bills. software widgets will allow users to purchase movie and flight tickets. Mashreq bank customers can either insert their card details on the mobile application or enter the PayMate PIN. With each payment. Moreover.169 . Mashreq bank clients will need to make a onetime registration to link their existing bank accounts or credit card accounts to their mobile number. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS WAP/Internet M – Payment 4 digit PIN and IVR None during trial Bank: Mashreq Bank.United Arab Emirates Short description UAE-based bank Mashreq has launched a mobile payments service in the UAE with Indian mobile commerce company PayMate. With PayMate.com . Platform: PayMate .
The mobile banking solution is from Sandstone Technology (North Sydney). but not necessary. The use of a token is recommended. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Banking.5 Australia Mobile Queensland www. Telstra. making a purchase will mean holding their mobile against a reader in a shop.boq.au . The solution features efficient coding and compressed file sizes for fast response time. No personal details are stored on the customer's mobile device. NAB.com. Very little data is physically transmitted across the mobile network. then the payment is automatically loaded onto their Nab Visa credit card account.mobi to access the online banking account on the mobile phone. view transaction history. Visa www. authorise payments. vendor of Internet and mobile banking systems as well as loan origination processing systems. Users can transfer money.Australia Short description Bank of Queensland (BOQ) has made their online banking portal available for mobile phone users. Mobile phone users surf to boq. allowing them to use iPhone or any mobile device with an SSL-capable browser.com – Australia Short description Contactless mobile payments is the first Australian mobile application of NFC. For consumers.Mobile payments 2010 .170 7.telstraenterprise. pay bills. M-Payment Username/password None Sandstone The service was introduced in September 2007. This technology can enable faster and . which will see Nab Visa credit card details securely loaded onto a Telstra SIM.
7. Telstra in partnership with NAB and VISA have launched this proof of concept trial in Melbourne. The network is based on a central service which receives data from electronic payment terminals located in service partners’ outlets. ticketing and credit cards. . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment SIM Free for pilot participants MNO: Telstra Financial institutions: Visa. as part of this. companies that provide cash for fund transfers and other physical outlets. The system was inaugurated in December in Yaoundé by Express Union. The participant’s mobile phone will be fitted with Contactless Near Field Communications (NFC) technology and the SIM loaded with a NAB Visa card application. National Australian Bank Additional information The proof of concept trial which consists of approx 250 participants will encourage the use of Contactless Mobile Payments to make purchases under the value of AUD 35 around the Docklands area.Mobile payment services and pilots easier payments which can mean less time at the checkout. The service allows mobile phone customers to transfer money and pay bills. it could replace all plastic cards including loyalty.6 Africa Mobile Money Cameroon Short description Mobile Money has partnered with money transfer operator Express Union Cameroon to launch a mobile payment platform in Cameroon. This Australia first trial encourages participants to explore the world without a wallet or purse – potentially. Mobile Money is available through a network of partners including micro-finance institutions.171 . Contactless Mobile Payments are already being used and trialed overseas as part of the GSM Association (GSMA) initiative and.
buy pre-paid airtime. Type of service Type of technology Domain Secured through Cost for usage Mobile Remittance SMS. but there are plans to expand abroad). Customers fund the wallet by buying txtNpay electronic cash at a partner outlet or making a transfer from their bank account. ADB Bank MNO.textnpay. MTN Partners . Brand owner: Africaxpress Financial.Mobile payments 2010 .net – Ghana Short description Txtnpay is a mobile phone-based payment system that enables its users to send money to anyone with a mobile phone (in Ghana for the time being. check their bank balance. WAP/Internet M – Payment 5 digit PIN Next to MNO-dependent SMS and data exchange charges. Every transaction is secured with a 5-digit PIN.172 Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M – Payment Identification at cashing point Not disclosed yet Express Union Cameroon txtNpay www. The txtNpay wallet is an electronic stored value account. and purchase goods and services. Kasapa. and only available upon opening an account in Ghana. pay bills. fees apply for opening an account as well as making a transaction. txtNpay works with any mobile phone and mobile operator in Ghana. First Atlantic Merchant Bank. Tigo. OneTouch. The exact fees are not disclosed. Zenith Bank.
ci/omoney/cashinout. top-up their airtime credit with up to XOF 10.000. To withdraw money and transfer money.000 to 3. make person-to-person money transfers. Orange customers can deposit and withdraw up to XOF 100.orange.000 XOF for withdrawals/transfers up to XOF 100.000 (EUR 152) from the Orange Money account. With Orange money. For a complete overview of fees: www. Mali and Senegal are the first to follow.173 .orange. Orange Ivory Coast handles the services’ platform and marketing. managed on the mobile telephone. In order to use the service.24) and pay bills. P2P money transfers into Ghana are already available.000 (EUR 15. Mobile banking. Type of service Type of technology Domain Secured through Cost for usage The deposit of money has no fees attached to it. Users do not need bank accounts to subscribe to the service.php Partners MNO: Orange Telecom Financial Institution: BNP Paribas (BICICI branch) Additional information Orange plans to roll out this service to other African countries.ci/omoney – Côte d’Ivoire Short description Orange Money is a pre-paid wallet.which is activated for free without requiring any minimum deposit. customers have to open an Orange Money account at a accredited Orange agent. costs are 200 XOF for withdrawals/transfers up to XOF 2. Orange Money www.Mobile payment services and pilots Additional information TextNpay plans on making international P2P money transfers out of Ghana available to consumers in due time. Mobile remittance SMS M – Banking & M – Payment . while BNP Paribas’ Ivory Coast subsidiary BICICI is in charge of issuing and guaranteeing the electronic money.
. Equity Bank Kenya has 2. the following services are available: account balance enquiries funds transfer order of statements stop cheque or payment instruction utility bill payments loan approval notification Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Payment PIN Transfer from EBK account to EBK account: KES 50 (EUR 0.5 million accounts countrywide.Small business owners.6 million customers who have 4. The infrastructure of this initiative is based upon the M-PESA infrastructure.Kenya Short description Sms Banking allows customers to access limited services via the mobile phone.Mobile payments 2010 . Via Eazzy 24/7. Customers can also top up their mobile phone with the new Equi-sms banking Top up Service. individuals.equitybank. account holders. non-account holders looking for convenient access to their bank account.50) Transfer from EBK account to other bank’s account: KES 150-200 (EUR 1.174 Eazzy 24/7 www.ke/ .co. The target group is any of the clients with a phone who are looking for convenient banking . Safaricom (owned by Vodafone) is partner in both the M-PESA initiative and in this Eazzy 24/7 initiative.00) Partners Additional information Safaricom (Vodafone) Launched in September 2008.50 – EUR 2.
ke/Main-Site/Home/Personal-Banking/Electronic-Banking/MobileBanking.– Kenya Short description M-Banking is an SMS-based telephone banking service developed to allow our customers enquire their bank account balances. M-Banking has become very popular with customers. buy Safaricom prepaid airtime and manage the M-PESA account. Since its inception in 2004. Through M-PESA a user can deposit or withdraw money.Mobile payment services and pilots Cooperative Bank of Kenya mobile banking www. transfer money to another M-PESA customer or send money to a non M-PESA customer. Type of service Mobile remittance .000 customers as subscribers.co. In December 2008. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information M – Payment 4 digit PIN Equal to normal banking fees Mobile Banking SMS M-PESA www. request for mini statements.Kenya Short description Safricom offers an SMS-based payment and money transfer service based on SMS and pre-paid accounts.175 .co.ke/m-pesa . purchase air time. make utility payments and receive automatic salary alerts when cash enters their accounts.safaricom.co-opbank. Safricom announced an extension of the service with UK-Kenya remittances in cooperation with Western Union. This product allows you greater accessibility and convenience in running your account by bringing all these services at your finger tips. and today counts in excess of 200.
000 (EUR 504) in their M-PESA account. It comes with a full transaction tracking and reporting service and anti money laundering measures and is being developed to allow international use for remittances. a customer can send funds to any other phone number. on any network. Sending money to an M-PESA user costs KES 30 (EUR 0. and charges are levied on a pay-as-you-go basis.000 (EUR 354).72) with the size of the withdrawal varying between KES 100 and KES 35.25) and KES 170 (EUR 1.Mobile payments 2010 .000. Sending money to a non-M-PESA person costs between KES 75 (EUR 0.30) for a transfer between KES 100 (EUR 1.76) and KES 400 (EUR 4. but the recipient need not be a subscriber or a bank account holder. with no minimum balance. allowing Kenyans overseas to send money home quickly and much more cost effectively than most alternative means. Only Safaricom subscribers can send money by M-PESA.04) for a transfer between KES 100 and KES 35. Customers can also use their MPesa account balance to buy goods and services. The receiver gets a text message that can be taken to a re-seller agent and cashed in. Once registered. Additional information . download or withdraw cash at Safaricoms re-seller airtime distribution agents. or for topping up airtime. It is aimed at mobile customers that do not have a bank account.000. and can only be used inside Kenya. 2007 in Kenya by Vodafone's Kenyan subsidiary Safaricom. enabling person-to-person money transfer instantly over large distances. Withdrawing cash costs between KES 25 (EUR 0. A user can have up to KES 50. Partners MNO: Safaricom. M-PESA was launched in February. Bank: Citigroup. for international remittances: Western Union.176 Type of technology Domain Secured through Cost for usage SMS M-Payment PIN M-PESA contains the following charges: There are no charges for depositing cash into an M-PESA account.01) and KES 35.
standardchartered. Zain. Tanzania.Mobile payment services and pilots Standard Chartered M-Banking www. request bank statements. Tanzania and Uganda. Zain’s previous money transfer service which was in operation in several East African . transfer funds between personal accounts and nominated accounts. In order to use the service. Currently. The service is also available to customers using international roaming and transactions will be limited to a single registered mobile number for security purposes. The pilot project will replace Sokotele.com/muse/obj/portal. Bank: Standard Chartered Zain M-Wallet www. Tanzania Short description The service allows bank customers to check their bank balance. pay utility bills.splash – Kenya. The service was also lauched in Tanzania in February 2009. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking USSD M – Payment PIN Free of charge MNO: Safaricom.177 . the service is only available to the Safaricom and Zain subscribers. mBanking is based on the Unstructured Supplementary Service Data (USSD) standard for transmitting information over GSM signaling channels. enquire on FX rates. change their PIN. view a mini bank statement for their last 3 transactions. the bank’s customers have to physically register with the bank.zain. top-up their mobile phone balance and request a cheque book.com/ke/personal-banking/electronic-banking/m-banking/en/ Kenya. Uganda Short description Mobile operator Zain partners with international banks including Citigroup and Standard Chartered Bank to launch its Zap mbanking in Kenya.
The same daily transaction limit applies to Safaricom’s MPesa money transfer service.000 up to 25 times in a day. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile Remittance SMS M – Payment. transfer and receive money to and from their bank accounts. according to new regulations imposed by the Central Bank of Kenya.Mobile payments 2010 .mipay. which is being rolled out by agent-based Saraf Mobile across North Africa. The deals follows the launch of Mi-Pay’s mobile money transfer service in Sudan. other fees not disclosed MNO: Zain. Uganda and Tanzania.com .Sierra Leone Short description Via Mi-Pay's online and mobile international remittance service. The service precedes the anticipated announcement of an East African mobile banking deal. customers in the Sierra Leone corridor will be able to use their mobile phone or the web to send or receive money payments to or from friends and relatives abroad. With Zap. Technology: Oberthur Technologies. Customers will be able to send credit to other Zain customers across Kenya. Zain enables customers to use their mobile phone to pay for goods and services. Additional information Mi-Pay Sierra Leone www. Banks: Citigroup. customers in Kenya are allowed to send and receive between KES 50 and KES 35. top up airtime account or top up someone else's account as well as manage their bank accounts.178 countries. Standard Chartered. withdraw cash. pay electricity bills (at present only in Kenya and Tanzania). Type of service Mobile remittance . send money to friends and family. M-Delivery Username – password Opening account is free of charge.
The customer is authenticated by their mobile PIN. and the purchase is confirmed by the handset without disclosing any banking or personal details. the vendor displays a dial string which the customer dials. FNB’s online payment solution. is chosen as the payment mechanism.fnb. .179 . merchant fee not disclosed by FNB Internet Solutions. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Payment User PIN Free for customer. When Cell Pay Point. FNB The service started in July 2008.co.South Africa Short description Customers registered for FNB's cellphone banking can use Cell Pay Point to purchase goods online directly from any of their transactional accounts.Mobile payment services and pilots Type of technology Domain Secured through Cost for usage Partners Additional information SMS M – Payment Identification upon receipt of money None during trial Platform: Mi-Pay Cell Pay Point www.za . FNB has 700. Consumers will have to wait for broad access. Users can use Cell Pay Point on any of the registered merchants' websites. as the Cell Pay Point solution requires vendors to sign up with the bank before the service is available on their website.000 account holders Customers who won’t be charged bank fees for goods purchased using Cell Pay Point.
and its functionality accessed through the use of an MTN SIM card.Mobile payments 2010 . account payments to various bankdefined beneficiaries. Airtime or electricity purchased is free of charge. It can be managed remotely via Internet or Mobile.South Africa Short description MTN Banking is a division of Standard Bank. initiating stop orders. Domain Secured through Cost for usage Partners Additional information .html .180 MTN banking www. MTN banking is codeveloped by mobile operator MTN and the Standard Bank. A client is offered an option of two cards: a MobileMoney debit cash card or MTN MasterCard functioning as a credit card. authorising debit orders. buying prepaid airtime and electricity. but with a zero credit limit. and is operated as a joint venture between Standard Bank and MTN. MobileMoney is a transactional account.Mobile Money is a full bank account. making and receiving payments to and from any bank account in South Africa.mtnbanking. certain municipalities and Telkom. responsible for account opening. The MTN MobileMoney account is a fully functional bank account integrated into Standard Bank’s systems and thus into the national payments system (NPS). MTN MobileMoney and MTN Credit Card.co. Prepaid airtime can be purchased for other users and for users on other networks. MobileMoney offers the following payment features: P2P money transfers. MTN is the primary service provider. which allows for internet operability. MTN banking is developed by MNO MTN and the Standard Bank.24). Type of service Type of technology Mobile remittance WAP / Internet . in-store payments. marketing and distribution. MTN Banking consists of two components. M-Banking SIM Bill payment and money transfers to other banks accounts generate transaction fees of ZAR 3 (EUR 0.za/site/MTNBanking/index2.
10 (EUR 0.co. POCit allows subscribers to receive. 2008 – free From January 1.01) Request payment: ZAR 0. .000 (EUR 153) free. USSD 2 is supported by all South African cellular operators and GSM cellphones. enabling clients to make donations to selected charities without a fee.za – South Africa Short description POCit is a personal payments tool that allows consumers to make payments via their credit card using their mobile phone. then 2% Partners Additional information Visa.Mobile payment services and pilots POC it www.co.181 . Capitec Bank Only one account can be stored on one mobile phone. Users can add funds to their wallet with an electronic fund transfer. 2009: Receive payment ZAR 0. buy airtime and pay medical bills.za – South Africa Short description SWAP uses the USSD phase 2 mobile network protocol as its preferred method of facilitating transactions and communicating with customers. or link their bank account or credit card for full SWAP Wallet functionality. SWAP Mobile is has wallet functionality.pocit. request.02) Make payment: Up to ZAR 2.swapmobile. The use of multiple POCit accounts is not allowed. Mastercard. pay money. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Payment Login name and PIN Until December 31.30 (EUR 0. SWAP Mobile www. Recently (January 2009) POCit added POCit Elect to its service offering. is faster than SMS and allows for real time interactive communications between customer cellphones and the SWAP system.
merchant pays the following fees: Activation of account ZAR 20 (EUR 1. Wizzit also offers an internet banking facility and a credit card for purchases in the formal retail sector Mobile remittance SMS M-Payment PIN Wizzit does not charge a monthly administration fee as fees are charged per transaction.co.52) Batch transfer fee (every time the merchant wants his accumulated credit to be transferred to his bank account): ZAR 5 (EUR 0..(ZAR 0. a so-called pay-as-you-go model. transactional bank account that uses cell phones for making person-to-person payments.5% There are some notification fees.05 per email or ZAR 0.38) Transaction fee: 3. Wizzit www.182 Type of service Type of technology Domain Secured through Cost for usage Mobile remittance USSD M-Payment PIN Free for consumer.wizzit.Mobile payments 2010 .South Africa Short description Wizzit offers a low cost. i. South African Bank of Athens Wizzit offers a low cost transactional bank account that uses cell Type of service Type of technology Domain Secured through Cost for usage Partners Additional .20 per SMS) which can be avoided by choosing to receive the notifications in the online portal.za .e. similar to the model employed elsewhere in the developing world. Partners Additional information The company’s target for next year is to secure 10 percent of the market by the end of the year. transfers and prepaid purchases. to be processing 10 percent of payments made to businesses in South Africa by end-2009.
00 (EUR 0. WAP/Internet. mobile WAP internet and USSD).absa. with a maximum of ZAR 35.183 . ZAR 1.Mobile payment services and pilots information phones for making person-to-person payments. and make cardless ATM payments using Absa’s CashSend facility. with up . It operates without branches.za – South Africa Short description Absa was the first South African bank to introduce Cellphone Banking services in the year 2000. Cellphone Banking Absa www. send notices of payments. The most popular type of Cellphone Banking transactions are balance enquiries. Absa’s Cellphone Banking services are provided across three different technological platforms (secure SMS. and has positioned itself as a virtual bank. Cellphone Banking allows clients to load beneficiaries and make payments.co.61) . It is accompanied by a Wizzit maestro debit card for making payments in the retail market. make inter-account transfers.00 (EUR 3. catering for different customer segment needs. who are members of the local community and can communicate with customers in their own language.55) for first ZAR 100 (EUR 8.90 (EUR 0.00) Partners Additional Over the last few years there has been a surge in uptake. purchase airtime. Wizzit defines its target market as the unbanked and under-banked population of South Africa.16) for every next ZAR 100 or part thereof. Clients open accounts through one of 1400 ‘Wizzkids’. transfers and prepaid purchases. view balances and statements. mini-statements and prepaid top-ups. Type of service Type of technology Domain Secured through Cost for usage Mobile Banking SMS. USSD M – Payment 4 digit PIN Transaction fees: ZAR 6.
7 million logons to Absa’s Cellphone Banking services each month. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS M – Payment PIN Not disclosed MNO: Saraf Mobile. the recipient is advised same-time via SMS to go to their local “SarafMobile” agent to collect the transferred cash. Individuals can go to a ‘SarafMobile’ agent to transfer money easily. businesses can receive payment direct from customers’ mobiles.000 SMEs use Absa’s Cellphone Banking. Additional information . 40. Saraf Mobile’ also creates a new authorised cash channel for both the ‘banked and unbanked’. Saraf Mobile Sudan Short description Saraf-Mobile offers people in Sudan the opportunity to transfer money immediately from one recipient to another irrespective of their location. All that’s required to make a transfer is the recipient’s mobile phone number. There are 1. and financial institutions can target and serve the huge mobile consumer base that exists within the region. Platform: Mi-Pay. Absa claims to have 4 million clients on its mobile banking service.184 information to 5000 new clients registering for Cellphone Banking each day.Mobile payments 2010 . securely and quickly. Financial service solutions: Isys The new pan-Arab service is the first phase in a planned roll-out which will cover 22 countries within the Middle East and North Africa. People can send money to family and friends.
6 major banks and recently launched a partnership with Zambia Postal Services Corporation which has over 200 post offices and postal agents. Celpay Zambia expects to reach the US$1 billion mark by 2010. pay for subscriptions or top up a friend or relative’s mobile .R.Mobile payment services and pilots CelPay www.000) per month from payments made by individuals and corporates for goods and services. This makes Celpay the single biggest distribution network available in Zambia.com www. Congo Short description Celpay enables citizens of Zambia.com . The future plans of Celpay include expansion into Zimbabwe and Kenya. buy fuel.mukuru. who can retrieve the money in cash from Celpay agents. Celpay is tried and tested and US$500 million worth of transactions were processed in the last five years. easy way to do money transfers.000. Celpay has an independent distribution network which comprises of 100 agents. Tanzania and D.Zimbabwe. In Zambia. South Africa Short description Mukuru is an online storefront that can be accessed by internet or phone. Mukuru. It is a quick. Customers can load their wallet by paying a Celpay agent and can send it to benificiaries.celpay.185 . Tanzania and Democratic Republic of Congo (former Zaire) to make person-to-person payments via SMS. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Remittance SMS M – Payment 4 digit PIN Depends on Celpay is currently handling and processing transactions worth K100 billion (or US$25.com – Zambia.
If someone wants to redeem the SMS at the Point of Sale. Monitise Type of service Type of technology Domain Secured through Cost for usage Partners . he or she must be identified through a passport by the shop’s employee. UK customers can sign up and transfer money to Mukuru’s bank account. None as such. delivered on the recipient’s mobile telephone.tz . Malawi and Zambia.com The participating petrol stations vary from month to month.efulusi.co. transfer funds and also to make payments through mobile networks. manage a bank account. deposit and withdraw cash. but unfavourable exchange rates with 15% margin. Type of service Type of technology Domain Secured through Mobile remittance SMS M-Delivery Passport. Mobile Banking.186 phone. Mukuru. The system plans to launch similar services in Kenya. So about 10% of the transferred sum can be regarded as remittance fee. It’s a UK – Zimbabwe/South Africa remittance service.Uganda Short description Monitise will integrate its mobile money manager with E-Fulusi services to offer users in East Africa a service which allows them to save money. but there are always member stations within the Harare city limits. before redeeming the voucher. banks and mobile handsets. Cost for usage Partners Additional information E-Fulusi Uganda http://www. Mukuru then will transfer the money to the intended recipient the next day via a voucher.Mobile payments 2010 . Mobile Remittance SMS M – Payment PIN Not disclosed Technology: E-Fulusi. about 10% higher than ‘normal’ exchange margins.
including Burundi. Guinea Bissau.98) and UGX 1 million (EUR 398) to another person. Bank: Standard Bank Uganda. MTN claims to have 600 agents where users can transfer and withdraw money. Guinea Bissau. Rwanda.5 million representing funding by the Africa Enterprise Challenge Fund (AECF) to deliver its service in East Africa. Congo Brazzaville.187 . MTN Mobile Money is available to all MTN banked or unbanked subscribers. Guinea. Kenya. Ethiopia.Uganda. MTN Mobile Money is a SIM-based version of Fundamo’s Mobile Wallet Solution version 3. Liberia Short description Telecommunication services provider MTN Group offers mbanking trials in Benin. commercial fees not yet disclosed MNO:MTN. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. it allows users to send money to people which do not have MTN SIM cards or mobile phones via a network of agents in their country. Mobile Remittance SMS M – Payment PIN Free during the pilot. Technology: Fundamo MTN Uganda Mobile Money users are allowed to transfer amounts between UGX 5.Mobile payment services and pilots Additional information Monitise has recently been awarded USD 1.mtn.1. Tanzania and Zambia MTN MobileMoney www. . MTN has partnered with local banks from each of the 5 markets in order to ensure that its MMT services are fully compliant with financial services regulations. Guinea.000 (EUR 1. The move comes after the company launched its Mobile Money Transfer in Uganda following the completion of a 5-month trial. Democratic Republic of Congo. Congo Brazzaville. Monitise East Africa will initially offer services in Uganda with headquarters in Kampala. In due course the service will expand into neighbouring countries. Benin. MTN’s service MTN Mobile Money allows MTN subscribers to send money. buy airtime and pay bills using their mobile phones. Liberia and Uganda. Besides enabling money transfers between MTN subscribers.com .
Obopay At the confluence of the un-banked and mobile phone lies an unprecedented opportunity to overcome one of the most crucial issues we face today. money transfer.World Short description Bank a billion is an initiative by Grameen and Obopay to serve a billion unbanked people by 2018. This includes access to savings.org .Mobile payments 2010 . payments and micro-credit. The potential for immediate and broad global impact on the problem of financial exclusion is vast. Using mobile technology to deliver mobile microcredit services overcomes previously limiting restrictions of space and time by using existing infrastructure to give even the most impoverished to access financial services. . bankabillion. By 2018 the world’s poor will benefit fully from mobile banking services because everyone with a mobile phone will have access to affordable financial services that empower their life and work.188 Bank a billion www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M-Banking Not decided yet Not disclosed yet Grameen Bank.
As of February 18. It should not be confused with the mobile phone standards called cdmaOne and CDMA2000 (which are often referred to as simply ‘CDMA’). standards with international standards so that American products can be used worldwide. and officially introduced in the Americas in 1983 and Australia in 1987. CDMA 2000 CDMA2000 is a hybrid 2. and constitutes the last element in the production-consumption chain of goods and services. that use CDMA as their underlying channel access methods. AMPS Advanced Mobile Phone System (AMPS) is the analogue mobile phone system standard developed by Bell Labs. to make a globally applicable third generation mobile phone system specification within the scope of the International Telecommunication Union. . It was the primary analogue mobile phone system in North America (and other locales) through the 1980s and into the 2000s.Annex I: Glossary 3GPP The third generation partnership project (3GPP) is a collaboration of groups of telecommunications associations. The consumer is the end-user of a product or service. systems. The organisation also coordinates U. 2008. services. data. and personnel in the United States. CDMA Code division multiple access (CDMA) is a channel access method utilized by various radio communication technologies. Carriers in the United States were no longer required to support AMPS and companies such as AT&T and Verizon have discontinued this service permanently. ATM An Automated Teller Machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. a multiple access scheme for digital radio. ANSI The American National Standards Institute is a private non-profit organisation that oversees the development of voluntary consensus standards for products.S. processes.5G / 3G technology of mobile telecommunications standards that use CDMA. to send voice. Consumer A consumer is an individual or household that use goods and services generated within the economy. and signalling data (such as a dialled telephone number) between mobile phones and cell sites.
Europay International SA was absorbed into MasterCard in 2002.take place. The central bank is the entity responsible for the monetary policy of a country or a group of member states. ETSI has produced standardizing the GSM cell phone system and the Tetra professional mobile radio system. European Commission The European Commission – formally the Commission of the European Communities – is the executive branch of the European Union. under names as IC Credit and Chip and PIN. EMV EMV is a standard for interoperation of IC (or Chip) cards and IC capable point of sale terminals and ATM’s. the three companies which originally cooperated to develop the standard. ETSI is an independent non-for-profit standardisation organisation of the telecommunications industry – equipment makers and network operators – in Europe. payment and delivery . for authenticating credit and debit card payments. MasterCard and Visa. The body is responsible for proposing legislation. sometimes controlling subsidized loan interest rates and acting as a lender of last resort to the banking sector during times of financial crisis are added to this. Its primary responsibility is to maintain the stability of the national currency and money supply. a natural unit consisting of different elements in an area functioning together with other factors of the environment.Annex I: Glossary Context or Transaction Context The context or transaction context is the total of situational circumstances in which each of the three processes of the transaction – agreement. The name EMV comes from the initial letters of Europay. . IC Card systems based on EMV are being phased in across the world. with worldwide projection. European Central Bank The European Central Bank (ECB) is the Central Bank of the Euro currency area. ETSI ETSI is short for European Telecommunications Standards Institute. The ECB was established by the EU in 1998 with its headquarters in Frankfurt. Germany. implementing decisions. JCB joined the organisation in December 2004. upholding Union’s treaties and the general day-to-day running of the Union. Ecosystem Term derived from biology. Easy Sell An easy sell is an innovation that only differs slightly from its precursor. Also the method of using the innovation is similar or almost similar to using the product or service it is supposed to replace.191 .
In addition. . Financial institutions generally fall under financial regulation from a government authority. FX rate FX rate stands for foreign exchange rate – also known as forex rate or exchange rate. The presence of financial institutions facilitates the flow of monies through the economy. They are responsible for transferring funds from investors to companies. Should the yield curve become inverse. Also the way consumers should use the innovation is different from the way consumers had to use its precursor. programming languages and related runtime libraries or graphical user interface. FI or Financial Institution A financial institution acts as an agent that provides financial services for its clients or members. and prime brokerage. asset management firms. It specifies how much one currency is worth in terms of another. in need of those funds. 180 manufactures and suppliers support the association’s initiatives as key partners. Its primary responsibility in recent years has been the implementation of SEPA. service or idea that is perceived to be new by its adopters Long Hauls A long haul is an innovation which differs significantly from its precursor. Financial institutions provide a service as intermediaries of the capital and debt markets. and similar businesses. Innovation An innovation is a good. operating system.Mobile payments 2010 . stock brokerages. Such is the primary means for depository institutions to develop revenue. building societies. The primary goals of the GSMA are to ensure mobile phones and wireless services work globally and are easily accessible. firms in this arena will offer additional fee-generating services including securities underwriting. Typical platforms include a computer’s architecture. the Single European Payments Area. Global Platform A global platform describes some sort of hardware architecture or software framework that allows software to run on a global scale. Common types of financial institutions include banks. credit unions. To do so. savings accounts are pooled to mitigate the risk brought by individual account holders (see adverse selection) in order to provide funds for loans.192 European Payments Council The European Payments Council (EPC) is the decision-making and coordination body of the European banking industry in relation to payments. enhancing their value to individual customers while creating new business opportunities for operators as their suppliers. GSMA The GSM association (GSMA) is the global trade association representing 700 GSM mobile phone operators.
This device was developed by Siemens. MVNO A Mobile Virtual Network Operator is a company that provides mobile phone service but does not have its own frequency allocation of the radio spectrum. Siemens and TC TrustCenter in order to demonstrate the deployment of electronic signatures using a mobile signing device. Mobile terminated SMS billing Payment method via SMS where the intended payee closes the payment by receiving one or more SMS messages.Annex I: Glossary Merchant Merchants function as professionals who deal with trade. Materna. dealing in commodities that they do not produce themselves.193 . Microsoft. Mobile originated SMS billing Payment method via SMS where the intended payee originates the payment by sending an SMS Mobile payment A payment where the mobile phone is involved in the initiation and/or confirmation of the payment. MoSign MoSign is a project (short for Mobile Signature) initiated by Deutsche Bank. Modular architecture Refers to a design of any system composed of separate components than can be connected together. nor does it have all of the infrastructure required to provide mobile telephone service. . and it has the entire infrastructure required to provide mobile telephone service. MNO Mobile Network Operator is a company that provides mobile phone service and has its own frequency allocation of the radio spectrum. Ericsson. NFC Near Field Communication (NFC) is a short-range high frequency wireless communication technology which enables the exchange of data between devices over about a ten centimetre (or four inches) distance. in order to produce profit. The payer may or may not be ‘mobile’ or ‘on the move’. The technology is a simple extension of the ISO 14443 proximity-card standard that combines the interface of a smartcard and a reader into a single device. Sema Group.
it houses confidential information. It refers to the transportation of messages wirelessly and without landline. that a payments institution would be an entity providing as its core business payment services. such as telecoms providers. which is oftentimes a retail shop or the checkout counter in that shop. services or both. or to fulfil a legal obligation. the PSD does allow for hybrid institutions. Perceived Risk Perceived risk is the subjective judgment that people make about the characteristics and severity of a risk. as distinct from other banking services. However. PSD PSD is short for Payments Service Directive. It is envisaged. The consequence is that every cross-border payment in the EU can be treated as a domestic payment. Physical place used for user authentication. It refers to a location where a transaction occurs. authorisation and stored credentials. Payment A payment is a transfer of wealth from one party to another.Mobile payments 2010 . Secure Element Also Security Element. POS POS is short for Point Of Sale. Risk Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. Exposure to the consequences of uncertainty constitutes a risk. A payment is usually made in exchange for the provision of goods. . Payment Institution A legal person that has been granted authorisation in accordance with the Payment Services Directive (PSD) to provide and execute payment services throughout the European Community. who in the course of their business may also provide some forms of payment service (and in turn are to be regarded as payment institutions). but not a requirement. It is a law imposed by the European Union which intends to create equal legal conditions for payments in the EU.194 OTA OTA stand for Over The Air. Premium SMS An SMS message for which the sender pays a higher fee than normal to cover the expenses for a good or service delivered.
There are two categories of smart cards: memory cards contain only non-volatile memory storage components and perhaps some specific security logic. Microprocessor cards contain volatile memory and microprocessor components. Standardisation Standardisation is the process of developing and agreeing upon technical standards.Annex I: Glossary SEPA SEPA is short for Single Euro Payments Area. Smash hits A smash hit is an innovation which has a high degree of dissimilarity to the product or service it is supposed to replace.195 . processes or practices. StoLPaN is a pan-European consortium supported by the EC’s IST program. StoLPaN Short for ‘Store Logistics and Payment with NFC. StoLPaN examines the potential for bringing together the new kind of local wireless interface. methods. This is the vision. This implies that it can receive input which is processed and delivered as an output. Smart Card A smart card is defined as any pocket sized card with embedded integrated circuits which can process information. SEPA marks the end of international payments within the EU. A standard is a document that establishes uniform engineering or technical specifications. SMS Short Message Service is a communications protocol allowing the interchange of short text messages between mobile phone devices. directive and goal of the European Commission to let consumers and businesses within the EU pay with one set of payments instruments. Transaction Context See context Trusted Services Manager Trusted third party who securely distributes and manages the service providers services to the mobile network operator customer base . This set includes bank transfers. Sure Failures A sure failure is an innovation which is differs only slightly from its precursor. but using the innovation requires a high degree of behavioural change. But the behaviour changes using the innovation require are limited. direct debits and cards. criteria. NFC and mobile communication.
It is generally associated with real-time or instant messaging type phone services. USSD Unstructured Supplementary Service Data (USSD) is a capability of all GSM phones. and is the European answer to the requirements for 3G cellular radio systems. There is no store-and-forward capability that is typical of ‘normal’ short messages. UMTS Universal Mobile Telecommunications System (UMTS) is one of the third generation (3G) cell phone technologies. . Currently.196 UICC The Universal Integrated Circuit Card (UICC) is the chip card used in mobile terminals in GSM and UMTS networks. the most common form of UMTS uses CDMA as the underlying air interface. It is standardized by the 3GPP. which is also being developed into a 4G technology. Response times for interactive USSD based services are generally quicker than those used for SMS. The UICC ensures the integrity and security of all kinds of personal data and it typically holds a few hundred kilobytes.Mobile payments 2010 .
Pakistan – June 2007 Contactlessnews.eu (2007) http://europa. Computer Fraud & Security. Understanding the Psychology of New Product Adoption. UK .iacr.2005 http://eprint.org/2005/052. Lycklama.bbc. C. Journal of Payment Strategy & Systems .cam. Liezenberg. Ali Bhutto Insitute of Science and Technology.stm Betty Collis (1993) Betty Collis (1993).do?reference=MEMO/08/52&format=HTML&ag ed=0& language=EN&guiLanguage=en Gerhard Hancke (2007) A practical relay attack on ISO 14443 proximity cards. Harvard Business Review .contactlessnews. Israel . Gerhard Hancke.cl. T. H.Annex II: References References BBC (2008) http://news. University of Cambridge.uk/~gh275/relay.co.uk/2/hi/uk_news/1966247.eu/rapid/pressReleasesAction. Computer Fraud & Security (2007) analysis of mobile payment security measures and different standards.pdf Harvard Business Review (2006) Eager Sellers and Stony Buyers.2007 http://www. Smorenberg. University of Twente.pdf Europa. Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar. the Netherlands. Ziv Kfir and Avishai Wool.com/news/2008/01/11/contactless-market-continues-togrow-while-nfc-forecasts-revised-downward/ Eprint.org (2005) Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems.ac.com (2008) http://www.iacr. D. Tel Aviv University. J.April 2007 . Karachi.June 2006 Journal of Payment Strategy & Systems (2007) Understanding buyer and seller behaviour for improved payment product development. Gourville.
2006 Mobey Forum www.html Technology Review (2008) http://www.nfc-research.htm Mobilementalism (2006) http://mobilementalism.com/nokia-6212-classic-08x04x15. Information Security Group.Mobile payments 2010 .telecompaper.paymentsnews.com/newsletters/MobilePaymentsUpdate.com/2007/04/abi_research_sc.thepaypers.com (2007) http://www. UK .php?id=45 Payments News (2007) http://www.at/index. Heiko Knospe.htm General Internet resources For news on the mobile payments industry we can recommend the following websites: For news.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfcphone-at-3gsm/ Mobile Monday (2002) http://www.mobilegazette.mobeyforum. feeds and research on the telecom industry: www.net/news/mobile-payment-market-to-reach-eur-55-billion-in2006 NFC-research (2007) http://www.39044192.com (2008) http://www.com/news/communications/0.mobilemonday.198 Juniper Research (2008) Juniper research: Mobile Payments: Strategies & Markets 2007-2011 Heiko Knospe (2006) Secure M-commerce Scarlet Schwiderski – Grosche. University of London.zdnetasia.org Mobile Payments Update (The Paypers) http://www.62031790.technologyreview.00.com/Infotech/17355/page2/ ZDnetasia.aspx Mobilegazette.com For news and research on the payments industry: .
com www.contactlessnews.nfc-research.finextra.199 .com For more information on NFC: www.com www.paymentsnews.at .Annex II: References www.org www.thepaypers.com www.nfc-forum.
schemes and standards. for both the mobile and fixed/broadband market. Consequently. e-identity. On the other side. we help corporate users to ‘choose & use’ the transaction services that fit their . shaping breakthrough business and market innovations. starting from 1995. including BEN. cards and related regulation. He has a Master of Science degree from the Delft University of Technology. numbering. Our key practices include online payment. We devote research time and investments to help peer professionals ‘structure & understand’ these topics and actively facilitate industry knowledge transfer. we are ideally positioned to help our clients determine the direction of their growth. This often results in new products and/or markets that we successively help to ‘develop & manage’ and bring to market in a controlled and effective way. Ed Achterberg worked as telecom consultant and focused on telecom regulation and legislation. we have extensive experience in developing multi-party transaction schemes and accompanying messaging standards in diverse industries such as financial services. BT/Telfort and others. Given our independent position. We do this for single clients but also for groups of clients. With our in-depth knowledge and experience gained on both the demand side and the supply side. e-invoicing. an independent full service consulting firm specialised in payments and transactional services. insurance and document exchange. Our leading industry reports can be downloaded for free. Chiel is one of the thought leaders in online and mobile payments.Annex III: About the editors and publishers Chiel Liezenberg Chiel Liezenberg is a founding partner of Innopay. e-invoicing and e-identity. As senior research analyst he has detailed knowledge about the Benelux telecommunications industry. He focuses on delivering in-depth analysis on trends across the Benelux and the Western European industry. Dutchtone. and number portability for several telecom operators. Prior to Telecompaper. Callmax. Ed Achterberg Ed Achterberg founded Telecompaper in 2000. which we consider crucial for the further development of global e-business. we work for all players in the industry. interconnection. About Innopay Innopay is an independent full service consultancy firm specialised in payments and related transaction services. Enertel. Chiel holds an MA in Mechanical Engineering and Industrial Organisation from Delft University of Technology. mobile payment.
competitive updates.com or +31 20 6580651. Western European Telecoms. and also employs correspondents in various countries who track their local telecom markets. Research: Our expert researchers are continuously monitoring the telecom industry. Innopay is a member of the European Payments Consulting Association (EPCA) and the Payment Systems Market Expert Group (PSMEG) of the European Commission and an associate member of the Euro Banking Association (EBA). Telecompaper provides international customers with research. We can develop a bespoke news feed or corporate intranet solution. we also have local presence as our correspondents provide us with news from their local market.innopay. They offer answers to ad-hoc questions and compile reports such as research briefs. focussed. and country-specific Feeds.com or contact Ed Achterberg at ed@telecompaper. support and advisory services.telecompaper. operational and technical aspects. to-the-point and objective.201 . News access: Our News Access subscriptions allow you to log in and search our site for news items. Using our news database can make your life easier as the news is timely. promotions updates and regularly updated company profiles. quarterly reports on the Dutch mobile and broadband industry. . We use a multi-disciplinary approach covering commercial. Although we have a global focus. For more information visit www. The news items are written in English and are specifically targeted at telecoms professionals. we also provide weekly Digests on various topics and regions. company updates.com or contact Chiel Liezenberg at chiel@innopay. In addition to website access. Our researchers have a deep understanding of the telecommunications markets and can help you make informed decisions. but also offer several pre-defined feeds such as Asia Telecom Daily. The company employs fifteen editors and analysts at its headquarters in The Netherlands. News feeds: Telecompaper actively tracks the global telecommunications industry. About Telecompaper Telecompaper has kept telecommunications professionals up-to-date since 2000.com or +31 30 6349600.Annex III: About the editors and publishers specific business needs from the wide array of often industry tailored transaction services on offer. For more information visit www.
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