Mobile payments 2010

Market analysis and overview

150+
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

Preface
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 info@innopay.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 info@innopay.com or +31 20 6580651.

Contents
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

3

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

4

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

..............................................................200 ......................................................................................................................190 Annex II: References...................................197 References.....................................................................................................Contents ANNEXES Annex I: Glossary ................ 198 Annex III: About the editors and publishers.. 197 General Internet resources ..............................9 .................................

. with mobile devices slowly morphing into multi-media and multi-application devices. From the perspective of the end consumer. consumers are increasingly more comfortable with the mobile phone fulfilling more than one function. i. However this growth did not materialise and mobile payments have in fact largely remained an undelivered promise for more than a decade. The attraction of mobile payments The attraction of mobile payments is unquestionable. For Mobile Network Operators. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer. 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. there was similar activity at the turn of the millennium when there were also predictions of aggressive growths in mobile payments. 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. 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.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. 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.e. However. For financial institutions mobile payments are a potential method for protecting the current account and surrounding loan products and avoiding further disintermediation from customers. Furthermore. the mobile phone has achieved ‘permanent share of pocket’. For those who remember. For merchants. next to the wallet and keys it is the object that is most likely to be constantly with the consumer. The benefits and opportunities seem clear for all parties involved. 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. They also provide the possibility of reducing cash and cost effectively servicing under-banked geographies.

etc) but what service providers often don’t take into account are the psychological barriers associated with behavioural change. In addition. the needs of the end consumer need to be taken into account. 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. However it is not clear what advantages mobile payments bring in this context over contactless payments. 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).11 . minimize costs and to maximise usability. The creation of mobile payment solutions needs to take these behavioural considerations around a payment into account. learning costs. ring tone. interactive communication on mobile device. such as ordering or receiving digital goods. e.g. activation fees. 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.g. 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. 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. These barriers imply that one of the keys to successful adoption of a new innovation is the degree of change demanded from the . The key deterrent from consumer and merchant sides will be their high costs.g. Remote Point of Sale. Most service providers are aware of the behavioural barriers of new products such as economic switching costs (e. etc). obsolescence fees. 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. parking. Analysis of several contexts through this realisation shows that: Purchase of non physical goods (e. The current focus of these solutions is the promotion of their usability features (e. contactless.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. 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.

e. SMS does not use any encryption and finally there is no proof of delivery within the SMS protocol. In some Asian countries there is a low internet penetration. The smaller the consumer’s change in behaviour needs to be. SMS uses store and forward technology. the focus remains on mobile money transfer via SMS.12 receiver of the innovation. 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. These changes have made this technology suitable for use in payments.Mobile payments 2010 . loyalty and smart advertisements that this technology is believed to be able to offer the most benefit. 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. Examples of widely used . 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. 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. i. especially in the USA. SMS. the message is stored with the operator on its way to the recipient or until the recipient becomes available. Many mobile payment initiatives are still in a pilot stage. In developing countries which are underserved by the banking industry. while a simple and easy to use technology has a number of limitations that complicate its use in payments. faster throughput and better security. Also. While this technology has received the most press in relation to payments it is in other non payment applications such as mobile ticketing. Recent technical developments and their implications Contactless technology has matured in the last few decades with the ability to communicate two-way. 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. 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. the greater the chances of success are. with a few notable exceptions that have been commercially launched on a large scale. Lessons. compared to Japan for example. Often there is a maximum time limit for which the operator holds the message for delivery in case the recipient’s phone is unavailable. a comparatively high mobile adoption and a push by the operators to offer mobile payments like mobile POS and mobile ticketing.

. G-Cash in the Philippines. difficulties around branding in a cooperative model. some of these (in no order of priority) are: desire by players in each industry to diversify from their core businesses. NTT DoCoMo’s Osaifu-Keitai in Japan and M-PESA in Kenya. debate over who ‘owns’ the customer. Seizing the opportunity Mobile payments are currently again on top of mind. debate over the location of the secure element and the inability to arrive at a workable revenue sharing model. Drivers Offering added value for consumers.13 . the NFC Forum and EMVCo.Management summary commercially available services are Paybox in Austria. Without the creation and usage of standards for mobile payments the industry risks the development of non-interoperable islands of pilots and solutions. Mobey Forum. 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. Our analysis of mobile initiatives around the world reveals the following key drivers and barriers for the adoption of mobile payments. namely the financial institutions and the mobile network operators. merchants mobile operators. 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. There have been many reasons for this lack of cooperation. This report describes some of the prominent attempts at standardisation including the GSMA.

Part 1 Market analysis .

com/prod/servlet/press-release.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.1 Introduction to this report 1. in 2006 the same sources predicted the market to reach only €10 billion by 20101.frost.5 billion for the United States alone3. 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.net/news/mobile-payment-market-to-reach-eur-55-billion-in-2006 www. In 2002 market experts forecast that by 2006 €55 billion would be processed through mobile payments. however this growth did not materialise.marketwire. At that time there were also predictions of aggressive growths in mobile payments.pag?Src=RSS&docid=165875378 2 3 . one source predicted that in 2013 an absurd $800 billion2 would be transacted by phone while another source predicted a much more conservative $1. The reality is that market size and growth fall far short of most predictions and that growth is anything but given. For those who remember. However. there was similar activity at the turn of the millennium. In 2009.html www. 1 www.com/press-release/Xcellink-International-Inc-1031269.mobilemonday. Mobile payments have in fact largely remained an undelivered promise for more than a decade.

For mobile network operators mobile payments also hold the possibilities of allowing for diversification into other areas of the consumer’s needs and lifestyle. Retail payments including mobile payments are more often than not a loss leader for these more profitable products.Mobile payments 2010 .2 The attraction of 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.2.16 While the attraction of mobile payments is widely recognised. Financial institutions are keen to avoid the further worsening of this situation through third party mobile payments. 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. financial institutions are primarily focused on protecting the current account and surrounding loan products.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. 4 See glossary for definition of ‘financial institution’ and other payments terms . These areas for attention suggest caution amidst the current excitement around mobile payments.3 For technology providers As with any technology led development. extra payment related revenues and through associated increases in air time and data use.2. From a retail banking point of view. there are some key development areas that must be given attention. Furthermore in developing geographies mobile payments offer financial institutions the opportunity to cost-effectively capture and service non and under-banked communities. 1. 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. 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. 1.2. 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.

Introduction to this report 1. There is often confusion and overlap between mobile payments. 1. 1. does this mean that end consumers are ready to abandon the wallet and rely primarily on the phone. i.17 . However un-manned or remote Point of Sale locations could benefit from mobile payment by allowing a reduction in servicing costs. This lack of coherent definitions and mutually shared categorisations across the industry is one of the factors . 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. Furthermore. The following are the key trends and developments for 2010: 1. there are many ways in the market to define what a mobile payment is and almost as many ways of categorising mobile payments. However.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. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means). consumers are increasingly more comfortable with the mobile phone fulfilling more than one function.6 For consumers From the perspective of the end consumer.2.2.5 For merchants For merchants. mobile banking. Industry professionals cannot come to an agreement on the exact definition of a mobile payment.2.e. with mobile devices slowly morphing into multi-media and multi-application devices.3.1 Towards a clearer definition of mobile payments Today. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer. However. 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. for the important task of handling their payments? 1. next to the wallet and keys it is the object that is most likely to be constantly with 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. which is more a lifestyle or leisure tool. the mobile phone has achieved ‘permanent share of pocket’.

Context analysis looks at the payment behaviour of the various actors in a transaction. 1. 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. 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. 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. 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.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. Not all things that ‘are logical’ also actually happen. It is likely that many of the pilots and initiatives being quickly launched today have not examined this critical question closely enough. 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. standardisation and contributing to the creation of a lot of unnecessary noise around mobile payments. Mobile payments are an innovation.Mobile payments 2010 . 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 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. . This reasoning may prove to be false. Without a clear and widely agreed definition and taxonomy it is difficult to envisage the rapid and consistent growth of this business. 1.3.18 limiting cooperation. Introduction of innovations into markets of embedded incumbents requires careful consideration of the behavioural aspects of adoption of innovations.3.

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. Section 6 of this report describes the importance of standardisation for mobile payments and looks at some of the current attempts and their status. trends and issues from analysis of global initiatives There are a number of mobile payment pilots and initiatives in motion around the world today. 1. 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.19 . Europe is actively experimenting with Point of Sale NFC payments.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. There have been and continue to be several attempts at standardisation. For example several African countries make use of mobile payments for peer to peer remittance and to reach the un-banked.3. Similarly standardisation is considered to be essential to the long term survival and growth of mobile payments.Introduction to this report 1. premium SMS).4 Lessons. The resulting mobile network operator only solutions have generally been limited to market niches (e. Different geographies have different levels of progress and maturity in different applications of mobile payments. 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.g. Why has such cooperation between these stakeholders been so difficult to achieve so far? In section 6 the current barriers to cooperation are examined. .

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. telecommunication and technology circles right now. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means). Mobile banking – access to banking functionality (query + transaction) via the mobile phone. e. 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. 2. 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. However. an event ticket (but not to make the payment). Additionally a simple classification of mobile payments by location and funding method is offered.transactions where the mobile phone is used simply to receive delivery of goods or services. There are four main areas for the use of a mobile phone in the context of a financial transaction. 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. In this section a proposal is made to view payments separately from other functions that can be performed with the mobile device.2 Towards a clearer definition of mobile payment Mobile payments are a hot topic in financial. classifications are examined more closely and several alternative possibilities are offered for classifying mobile payment methods. 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. 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. Mobile delivery . professionals across these industries have not yet come to a clear and mutually agreed definition and classification of mobile payments. . There is often confusion and overlap between a mobile payment. mobile banking. These are: — Mobile order – transactions where the mobile phone is used simply to initiate the order (but not to make the payment).g. — — — — 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. In section 3 of this report.

receive delivery or authenticate the consumer.21 . 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. Of the current applications of the mobile phone in a transaction. The large majority of applications simply use the mobile phone to initiate the order. 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 . only a subset involve actual payment with the mobile. Such payments can be discussed separately as attributes or features of mobile banking.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.g.

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.22 Example Mobile order Mobile payment No.2 Scoping of this report The scope of this report is limited to mobile payment. 2.Mobile payments 2010 . as defined in the previous paragraph: a payment where the mobile phone is involved in the initiation and confirmation of the payment. order. . By confusing and using the term mobile payments for non payment functions such as banking. 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. delivery and authentication under the common label of mobile payments has some negative consequences for the development of mobile payment solutions.

these are: — — By location. but which is not included in great detail in this report is premium SMS and premium rate phone numbers. 2. In the next section some of the situational and contextual factors that can impact the success of mobile payments are examined. Services are very similar to each other and almost every MNO supports these services. we will also pay attention to interesting mobile banking and mobile ticketing.23 . The charges for these services are deducted from the pre-paid credit of the user or billed via the MNO. 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.Towards a clearer definition of mobile payment A method that is included under the definition of mobile payments. 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. The more theoretical part 1 focuses on mobile payments. . where we give a description of the most relevant payments initiatives. Also a simple categorisation has been offered for mobile payments and popular initiatives and pilots have been plotted within this categorisation.3 Simplifying further through classification Given the above definition of a mobile payment there are two dimensions for further classification. Examples have been provided of these differences. minus premium rate SMS and premium rate phone numbers. In part 2 of the report.

3. With the introduction of media (mail. Businesses introducing new mobile payment methods must take this bias into account and be prepared with strategies discussed in this section. Delivery. Payment and Delivery take place on the same moment. The amount of risk between buyer and seller is distributed evenly: the buyer receives delivery when the seller is paid. Buyers make different judgments than sellers and therefore any payment solution balances risk mitigation. internet and mobile phone) things changed drastically. Consumers tend to overvalue existing payment methods while businesses overvalue new innovative payment methods. C. the payment and the delivery.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. Both consumers and business thus feel variying degrees of risk for concluding the agreement. D. This is the case in a typical retail setting (purchase of furniture being a notable exception). Journal of Payment Strategy & Systems. April 2007 . A transaction occurs when both parties experience an acceptable balance between the three factors. Smorenberg. H. usability and cost between buyer and seller. ‘Distant commerce’ has decoupled time and place thereby introducing feelings of risk associated with each step in the process. 5 For the detailed academic overview of the concepts in this section. First there was the introduction of mail order in the middle of the previous century. see ‘Understanding buyer and seller behaviour for improved payment product development’. causing most new payment methods to fail. Payment. Then came telephone and internet ordering and now it is possible to order and pay with your mobile.1 Risk is the key driver for transactional behaviour The amount of perceived risk is determined by the timing and location of the: — — — Agreement. Lycklama. Liezenberg.

Three types of relationships are distinguished: anonymous. 3. markets and vending machines.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. Timing The timeline and order in which the processes are executed. This context factor is a dynamic one: over time the relation between buyer and seller changes. Relation The relation between the buyer and the seller. First a better understanding of these risks is required. which in effect determines the risk perceived by the actors in a transaction: 1. such as mobile. With low trust. rent) typically lead to a higher degree of trust than incidental transactions.25 . Processes can be executed simultaneously or disconnected. Repetitive transactions (e.g. internet and email. . parties will seek more guarantees during the transaction process. subscriptions. This leads to three generic types of timings as shown in Figure 3-1below: Figure 3-1: Different timing and order of the Agreement. changing also the risk perceived. physical or virtual. it was found that four generic factors constitute the transaction context. Location The location of a transaction process. Virtual and/or distanced locations of the actors transacting typically increase the Risk perceived. The type of relation influences the perceived risk for both parties.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. Location can also be related to the geographical distance between buyer and seller. Virtual locations refer to ‘channels’. 3. Payment and Delivery in the transaction processes 2. In the latter case the order of Payment and Delivery can be swapped. From analysis and practical experience. Examples of physical locations are shops. known and trusted.

In case of electronic/digital products.g. these can be delivered through electronic channels. The existing solutions while highly usable are relatively extremely costly.Mobile payments 2010 . Physical products obviously can not. However our analysis shows that the key deterrent for NFC POS solutions from consumer and merchant sides will be their high costs. 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. contactless.g. Product The characteristics of the product delivered. The substance of the product directly relates to the delivery channel. 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. 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. 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.2. High-value products require more guarantees than low-value products. The focus of current NFC solutions and pilots is predominantly on promoting their usability features (e. Also the nature of the product influences the risk: e. 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). interactive communication on mobile device. The one main downside of this solution is the need to pre-register.1 The likelihood of success For each context the table below shows the likelihood of success for mobile payment methods. 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 . Parking with a mobile phone Our analysis shows that direct debit from current account is the most suitable solution in this context. 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. etc). small high value electronic products are an attractive fraud target. Core characteristics are the value (high/low) and substance (virtual/physical). TV voting with SMS This context has been ripe for a new innovative solution for a long time now.26 4. 3. Especially the value of the product strongly determines risk perceived by both actors.

Again in this context. Vending machine SMS and NFC mobile solutions have obvious advantages in this context over cash if costs of these solutions can be kept low. 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. 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. an SMS based mobile solution could successfully enter this market.27 .In which situations could mobile payment be successful? Context Summary the payment would find success in this mature and highly profitable market. 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. Harvard Business Review. successful implementations include Hong Kong – Octopus card and the London Oyster card. Understanding the Psychology of New Product Adoption’. parking and TV voting mentioned above. 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. Migration of the contactless functionality to the mobile device would be a natural evolution. Gourville. a cooperative model between mobile network operators and financial institutions that deduct the amount from the current account would achieve success in this context. 6 ‘Eager Sellers and Stony Buyers. Public transport Contactless card solutions are a proven success in this context. T. or low online penetration. Studies quoted by Gourville state that over the last 25 years new products have failed at the staggering rate of 40%-90%. June 2006 . 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. Pizza order via telephone While cash is the current dominant solution in this context. as for purchase of a ring tone. Remittance Within sending countries it is difficult to see advantages for the use of any other solutions besides online initiation of the remittance. Businesses spend billions of dollars improving existing products and processes only to find consumers roundly reject them. J.

Furthermore people tend to display a second psychological bias. This is depicted in the matrix below which plots behavioural change demanded from the consumer with the product change inherent in the innovation. psychological bias called status quo bias: people irrationally overvalue benefits they currently possess relative to those they don’t. are the psychological costs associated with behaviour change.3 The psychological costs of changing Many products fail because of a universal. they are more upset at losing a benefit than they are delighted at gaining a similar benefit. however.Mobile payments 2010 . Therefore. New products often require consumers to change their behaviour. In the case of new payment methods for example. unless the benefits (of the new product) far outweigh the losses (from not using the existing product).28 3. but largely ignored. those behaviour changes entail costs.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. consumers incur: — — — Transaction costs. 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. As companies know. 3. 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. loss aversion. 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. The less change demanded the less impact is likely from these two psychological biases in the innovation being accepted.2.2. . consumers will not adopt it. such as activation fees.e. i. it’s not enough for a new product to be better. What businesses don’t take into account.

5 Smash hits At the top right of the matrix there are the ‘smash hits’.2. An example in this category is the Wireless Access Protocol (WAP) which at the turn of the millennium was believed to hold much potential. The promise of WAP was to bring the familiar online interface to which a consumer was . Furthermore.In which situations could mobile payment be successful? Figure 3-2: Classification of innovations along behaviour change and product change axes.e. i. These payment methods use online banking processes and authentication mechanisms to authorize a payment. 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.2. This is the reason why in countries where credit cards were already a popular payment instrument offline. The original online banking product is modified considerably at its interfaces to serve this function so the product changes are high. 3. they have also become a popular payment instrument online. 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.4 Easy sells At the top left of the matrix are the ‘easy sells’.29 .2. 3. 3.6 Sure failures At the bottom left of the matrix are the ‘sure failures’. these entail little product changes but significant behavioural changes. Examples from the realm of online payments are credit cards. However the product. Credit cards are a payment instrument that was never meant or designed for use online. 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. 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. product modification is low. with little to no modification can be used online.

cards etc can not deliver. Finland. 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. 3. in most NFC pilots. An example in this category is NFC enabled mobile payments at the point of sale. A classic example of this has been the introduction of online banking over the last 10-15 years. Furthermore the consumer can receive sales receipts. 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.7 Long hauls At the bottom right of the matrix are the ‘long hauls’.2.30 accustomed. 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. while the product changes are high. 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. cash. 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. where the benefits such as. 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. loyalty points and marketing messages and can check their balance and transaction history directly from their payment device.g. the behavioural changes are also high for a consumer in moving from cash/cards to their phone as the payment device. The Netherlands. 3. The product changes are considerable. However where it has been successful its introduction has been invariably accompanied by . The product change or additional benefit to the consumer was low. 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. All functionality that existing Point of Sale payment devices.g. etc).2. Online banking as an innovation has involved significant behavioural change compared to visiting a physical branch. However.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. to the mobile phone. low cost of processing even for small transaction amounts. these entail significant product changes and significant behavioural changes. e. Needless to say WAP did not achieve much success.Mobile payments 2010 .

Also some strategies to overcome behavioural and psychological biases in adopting innovations have been proposed. Usability and Cost. In the next section recent technical developments and their implications on mobile payments are presented. 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. These are the early adopters. Another strategy is to simply make behaviourally compatible products. An additional strategy is to seek out consumers or niches that do not currently use any incumbent product in that particular category. credit cards for use in the online world are an excellent example of this as mentioned above.31 . 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.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). Most of the NFC pilots across Europe are targeting such consumers and merchants and generally finding success with these early adopters. . In this section the importance of minimising risk and cost and maximizing usability in a payment transaction has been examined. 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.

In this section first the developments in contactless technologies are reviewed and the recent changes that have spawned the NFC phenomena are examined. Proximity. usually about 7. libraries. this technology offers a maximum read distance of 1 to 1. It is shown that the commercial availability of NFC phones remains limited. animal identification. 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. the restriction of RFID has always been that it is a one way communication standard.5 meters (3 to 5 feet). 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.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. The small read distance leads this technology to be used in many day to day applications such as the office access cards. Eager NFC-based payments initiatives increasingly rely on NFC-stickers. — Radio frequency identification or RFID is a well known application of contactless using both vicinity and proximity technology. this technology has a much smaller read distance. passports. Contactless technology can be divided into two categories: — Vicinity. . It is likely to be other non payment applications that will first result in wide scale use of NFC technology. thereby circumnavigating phone manufacturers. etc. However. Finally two popular technologies for remote payment applications are examined. SMS and NFC. It will be the compatibility with these non payment NFC applications that will determine and pave the road to the success of NFC payments.1 Developments in contactless technology Contactless technology has been around for a while and it is used regularly in our daily lives.5 centimetres (3 inches) in most instances. For example. from the code to the reader. 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 context it is critical to understand the nature and limits of these technologies. RFID is used extensively in areas such as product tracking. 4. 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.

Without going into too much of the technical details. The critical developments of two way communications. At the time of writing of this report there is still only one NFC enabled phone commercially available on the market: the Nokia 6212. because of the interactive communication opportunities offered by the two way capabilities of NFC. Several of the mobile phone manufacturers are currently providing prototype 7 http://mobilementalism. 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. Sagem released the Sagem My 700X NFC in 2007. 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.2 (Non-)availability of NFC enabled phones The market for NFC enabled phones is still in an early stage of development. but this phone is still not commercially available7. Samsung and Philips presented an NFC enabled phone at the GSM 2006 conference in Barcelona.Recent technical developments and implications This restriction was resolved in the 1990’s by Philips and Sony. 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. this technology only offers its full potential when used with an interactive device such as a mobile phone.33 . it can be said that NFC is a more advanced and preferable technology for payments than Bluetooth as it offers faster connection between devices. 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. However. Other NFC phones have been created8 but only for NFC trials and are not yet commercially available9. The two companies jointly developed a standard for two way contactless communication. 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. less chance of interference. 4. faster data transfer speed and increased data security have made contactless technology ripe for use in payments. called Samsung X700 NFC. has a shorter range than that makes it more secure for use in crowded places. Nokia expects the 6212 to be available at the start of 2010. but demand for this mobile phone was disappointing.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfc-phone-at-3gsm/ . NFC is often compared to Bluetooth.

at/index.pdf www.39044192. This. According to the participants. the deal could well make sure that NFC is being built into mass market handsets for under USD 1. An NFC-sticker is a sticker equipped with advanced radio frequency technology (RFID). 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.com/documents/nfc_services_0207.com/documents/pbm/gsma_pbm_white_paper_11_2007.00. This rapid uptake has yet to materialise.pdf 9 10 11 .3 Circumventing NFC-phones While waiting for NFC handsets to become available.11 The diffusion of NFC-enabled phones has been subject of many speculations. GSMA already indicated that ‘the design of new mobile handsets for NFC mobile devices is a key point that needs to be considered. Many established market research firms like ABI Research and Juniper have marketed reports predicting a rapid uptake in shipment of NFC-phones.gsmworld.34 NFC-enabled mobile phones for trials by mobile operators with plans to provide commercial versions of the phones in 200910. It transmits card information to the merchant's terminal via NFC technology.62031790.gsmworld.com/news/communications/0. however.nfc-research. consumers need to hold their mobile device close to a reader. NFC-stickers may be a stopgap solution. 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. In order to pay using these stickers.php?id=45 www.zdnetasia. In early 2007. 8 www.Mobile payments 2010 . 4.htm www.

The stickers measure about one-quarter the size of a standard bank credit or debit card. Issue 16. but also on his wallet or credit card. US-based mobile commerce company Mobile Candy Dish for instance.35 . sees this approach as a bridge to fully integrated contactless m-payments services using NFC technology. Turkish Garanti Bank. The sticker cuts telcos and mobile phone manufacturers out of the loop. 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. 4. 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. which launched Europe’s largest contactless payment card trial with its Bonus PayPass credit card.12 In a separate move. for example to control access to a computer network — — 12 Mobile Payments Update vol. Already in Q2 2008. Turkish Garanti Bank and American Citi bank have introduced their own plans for mobile payments. making the bank the only institution to handle mobile payment transactions. This sticker however is not strictly related to mobile payment: the consumer can decide to put the sticker on his mobile phone. it announced to make use of NFC-enabled stickers. 2.4 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. 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. This allows the customer to use their phones to make low-value purchases with PayPass – without the need for handsets that support NFC. The Paypers/Telecompaper .Recent technical developments and implications MasterCard. Listed below are the key non payment applications of NFC: — Mobile ticketing: the NFC device acts as an access token. that offers the PayPas service. 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). has decided it cannot afford to wait for NFC handsets to become available. circumventing mobile network operators and mobile phone manufacturers altogether.

4. In order to distinguish fact from fiction. searching. This implies that the fraudster should have access to the mobile phone for a certain period of time.5. Also. The process of activating Bluetooth on both sides. some of the security issues for NFCbased mobile payments are described in this section. — — — It is the first three applications in this list. As the number of applications for the NFC-phone is still quite limited.org/nfc/feed/collin_mulliner_25c3_attacking_nfc_phones.5.1 devices with NFC support will be as easy as bringing them close together and accepting the pairing. In this mode. loyalty and smart advertisement that are believed to provide the most compatibility with payments. Collin Mulliner13 states that the weakest link in the chain is the passive NFC tag. 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. pairing and authorization will be replaced by a simple ‘touch’ of the mobile phones. this method is not deemed to be rewarding.1 Attacking the reader Attacking the reader means modifying someone’s mobile telephone and the NFC reader in it. mobile ticketing.5 NFC Security issues From a users’ perspective. the target device (phone) may draw its operating power from 13 www. Attacks on the NFC payment process can be divided in three categories – parallel to the NFC process: 4.2 Attacking the tag In a landmark study of the Fraunhofer Institute SIT. the perceived lack of security of NFC technology is an inhibitor for adoption. 4.36 — 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.pdf . waiting. it is easier and probably more rewarding to target a different part of the NFC payment process.Mobile payments 2010 .mulliner.

the item bought would be dispensed from machine A — straight into the waiting hands of the fraudster. Both tag and phone need a power supply. he revealed at 253C. 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. for example. 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. is that many of the issues uncovered during the initial testing have now been fixed — but there are still issues. even if the phone’s battery is flat. 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. the victim can see what the tag intends to do with the phone. Mulliner found out that especially the passive communication mode is vulnerable to attacks. Then. The active communication mode: both initiator (tag) and target (phone) communicate by alternately generating their own field.37 . Mulliner gives some examples: A smart poster could include a tag set to deliver a free phone number to a user’s handset. 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. he says. are exchanged using passive communication mode. 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. visiting Vienna and Frankfurt to look at both transit ticketing and vending machine applications. In a group of four vending machines. he identified that the NFC tags on machines B. enabling the NFC-payment to take place. Mulliner then took a look at how this all might work in the field. since the majority of messages exchanged via NFC. Only after tapping. C and D could be replaced with tags that point to vending machine A. This is bad news.Recent technical developments and implications the tag’s electromagnetic field. "The Nokia 6212 . A smart poster could include a tag set to deliver a freephone number to a user's handset. The result. for instance. instead of the tag performing the expected operation it would instead do whatever the fraudster had set it up to do. 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. This could be replaced with a tag set to deliver a premium rate number belonging to the fraudster instead. Mulliner then presented his findings to Nokia who. that when an NFC handset owner interacts with a tag on a movie poster or tourist information map. This means. whenever anyone made a purchase at any of those machines.

Application-level measures fail to protect against relay attacks. as a Cambridge University survey described below shows14. Using a so-called relay attack. Because the radio frequency field has a very low range (typically less than 10 cm). up to a distance of 50 m. 14 A practical relay attack on ISO 14443 proximity cards by Gerhard Hancke. This however is not the case." 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. University of Cambridge has shown that their hardware can successfully execute a relay attack against an ISO 14443A contactless smart card. it is oftentimes thought that the attacker must be within this range too. but it is not impossible. UK www.cl. "but URL spoofing is still possible." Mulliner told the audience. and the leech is a device which fakes a reader to the card as shown in the diagram below. The ghost is a device which fakes a card to the reader. 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.cam.pdf . 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. which are called the ghost and the leech. The basic relay attack system is built using two devices. 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. University of Cambridge.38 Classic is not vulnerable to most of the bugs I found in the Nokia 6131 NFC. attacks can be executed from a very long distance.uk/~gh275/relay.ac. 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.Mobile payments 2010 . As a result the legitimate owner will remain unaware of the attack. This attack is therefore a feasible method for circumventing current security protocols with little effort. This however requires quite some skills and is not easy to accomplish.

A typical attack is to charge someone else's credit card or electronic wallet for a purchase. especially at low bandwidths. otherwise it cannot initiate communication with a receiver. Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems. which 15 http://eprint. A receiver can either be active or passive. One could also open a secure door using a relay attack on someone else's contactless key15 device. and then present the ghost to the reader at payment time. Using this technique gives the ability to create a relay. To mount such an attack. Because of the short range of this communication mode. The attack described here breaks the assumption that the reader is communicating with a card that is physically close.g.org/2005/052. a radio frequency signal is sent from sender to recipient. location. the modulation is stronger. The sender node creates a radio frequency field which the receiver node receives.pdf. sends the message to the leech using a fast digital communication channel and minimum delay. A sender node must be an active device.Recent technical developments and implications The typical communication scenario starts with a message that the reader sends to the ghost. Eavesdropping For making an NFC-based mobile payment. In active mode.. One is a sender and one a receiver. as described in the relay attack section. This third party then becomes the recipient or a co-recipient. power of signal emitted by the NFC device and environmental noise.4 standard [ISO95]. or repeater between a reader and a card. Ziv Kfir and Avishai Wool. Furthermore. the attacker causes the reader to (unknowingly) communicate with a genuine card which is far away. Eavesdropping is also impacted by the communication mode.39 . using the two devices (the ghost and the leech) allows the distance between the reader and the real card to be practically unlimited. The ghost receives the message. RFID and NFC communication encompasses the communication between two tags. A tag which is only capable of receiving an RF-field is called a passive device. slip the leech into the victim's handbag).iacr. In the opposite direction (tag to reader) the communication scenario is reversed. This signal can be illegally intercepted by a third party and this act is called ‘eavesdropping’. 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.Tel Aviv University . one could place a leech device close to the victim smartcard (e. without any data manipulation. This opens several possible threats. which acts as a regular card. Using the relay attack. fakes the real reader and transmits the message to the real card. 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. An RFID tag which is capable of creating a radio frequency field by itself is called an active device. The relay is orthogonal to any higher level security protocols such as those defined in the ISO 7816. The leech receives the message.

The employment of security cameras and personnel may detect an attack in progress. Data destruction Data destruction can be executed by disturbing the signal that the NFC device(s) send(s). Transferring data through a secure channel. It is possible to disturb the signal by jamming certain radio frequencies. Destruction is relatively easy to realise with NFC. Figure 4-3: Schematic representation of a man-in-the-middle attack . Operating such equipment only requires basic electronic engineering skills. as jammer equipment cannot be easily concealed within a bag or jacket. a third party might trick A and B in a three party conversation as shown in the diagram below.Mobile payments 2010 . Man in the middle attack When two parties A and B want to communicate with each other. there is no clearly defined way to prevent such an attack.40 makes the communication more vulnerable to eavesdropping. Also. although this is a rather expensive option. which does not generate its own RF field is much harder to eavesdrop than an active device. There is no benefit for the disturber however besides the fact that the transaction is made impossible Up till now. A passive device. Mechanisms that prevent collision of different RFID signals cannot disable such an attack. can mitigate eaves dropping. which is a way of transferring data that is resistant to interception and tampering. RFID readers may contain jammer sensors triggering an alarm when a jammer is detected.

in case the answering device needs a very long time to answer. This is only possible. If the attacker C manages to do so it is possible to send a readable message to B and the attack might succeed. albeit disturbed. recipient B will receive an unreadable and not understandable message. if the inserted data can be transmitted. this attack is very difficult to execute and vulnerable to early stage discovery by initiating party A. only. C has to disturb the transmission of A to B. these are: — Store-and-forward. SMS is sent as clear text only. to make sure B does not receive the data sent by A. which makes C’s attempts futile. the battery is flat or the phone has no reach.41 . C is vulnerable to discovery since A might detect disturbance and abandon the transmission. before the original device starts with the answer. If the two fields are not perfectly aligned. If unwanted party C is physically near enough. In case A does not detect the disturbance. 4. Oftentimes. A generates an RF field and sends data to B. It should be mentioned that most SMS-based mobile payment methods do provide a proof of delivery. So C has to create a second RF field. mobile to landline. C can eavesdrop the data sent by A. e. The attacker could then send his data earlier than the valid receiver. functionally.Recent technical developments and implications Assuming party A uses active mode and B uses passive mode. Although disturbing transmission is possible. All in all. Lack of proof of delivery. C has to make sure that party B receives C’s signal. this means that the text message is sent from the sender phone to an operator. If both data streams overlap.g. Lack of encryption. Additionally. SMS has three characteristics that are important to consider in its use for a payments application. however a proof of delivery is not part of the SMS protocol as such. though the standard supports other types of broadcast messaging as well. Aligning two RF fields is possible in practice albeit it is very hard. and not A’s. mobile to computer. which renders the attack futile. In order to make a successful attempt. The insertion will be successful. When the intended recipient’s phone is available for this message to be received. This causes two RF fields to be active simultaneously. transmission to B will continue. the operator sends this message through to the recipient. Most SMS messages are mobile-tomobile text messages. Data insertion Data insertion means that the attacker inserts messages into the data exchange between two 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.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. the data will be corrupted. alhtough this — — . this omission can be circumnavigated.

42 increases the costs of a single transaction and is not economical if the transferred amounts are small. Short Message Service is a most popular data service offered by mobile network operators and most widely used for mobile payments. The person initiating the transaction does not need to be the person paying for it.uk/2/hi/uk_news/1966247. However protection ends in the radio interface.Mobile payments 2010 . until the account is blocked. this is an extremely weak point. The security of the transaction is as secure as the security of the merchant. There is no end-to-end security. 16 Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar – Ali Bhutto Insitute of Science and Technology. 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. The combination of these three factors makes SMS unsuitable for use in many payment applications.bbc. Heiko Knospe. For post-billed SMS services. Where it can and is used extensively however is simply to transfer initiation messages for a payments process.7 SMS security issues The service level security is important for secure m-commerce applications. A secure mobile payment system should have the following security properties17: — Confidentiality: The confidential information must be secured from an unauthorized person. process or device.000 mobile phones are stolen each year18 — Integrity: the information and systems have not been altered or corrupted by outside parties. In the UK alone. 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. – Computer Fraud & Security – june 2007 17 Secure M-commerce Scarlet Schwiderski – Grosche. University of London 18 BBC: http://news.co. 4. If a mobile device is stolen. 700.stm . the thief can abuse this as much as they like. Karachi – analysis of mobile payment security measures and different standards. Information Security Group. the network operator and its infrastructure must be trusted for transactions16. For SMS the confidential info is stored at the merchant’s end of the equation. — Authentication: ensures parties with access to a transaction are not impostors and are trusted.

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). — Authorization: Verify that the user is allowed to make the requested transaction.Recent technical developments and implications Corrupting SMS messages is possible. For SMS based payment systems this aspect is well covered as long as you have reception on your mobile phone. Post-billing SMS. 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.43 . Some operators have not activated this possibility.g. The data is not sent encrypted. As a consequence. 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. asterisks and finally the gate or hash character ‘#’. and the battery is not flat. such as a call-back service (e. The function that is triggered when sending USSD is network dependent and depends on what kind of services the operator has made available. It is mostly used as a method to query the available balance and other similar information in pre-paid GSM services. . — 4.g. the sender of a message can be absolutely sure that they are talking to their own operator. Response times for interactive USSD based services are generally quicker than those used for SMS. or interactive menu service (e. stock quotes. albeit not very frequently occurring. for instance #09001234# There is no store-and-forward capability that is typical of ‘normal’ short messages. this is different: the mobile device of the receiver has to meet the two criteria mentioned before. security is considerably better on this topic. For P2P payments. It is a capability of all modern GSM phones. It is generally associated with real-time or instant messaging type phone services. Also. Availability: system must be accessible for authorized users at any time. sporting results). cheaper phone charges while roaming). making eavesdropping and data corruption easier. authorization is an issue.8 USSD as a technology for mobile payments USSD stands for Unstructured Supplementary Service Data. USSD is a standard for transmitting information over GSM signalling channels. however this can be functionally solved. with PIN-based SMS-payments systems. communication via USSD is in sessions instead of in discrete intervals. one can pay by SMS. but this requires extra costs.

Handset manufacturer: produces mobile devices that support the use of Secure Elements. In parallel. for example payments. authentication etc. Service provider: offers services for end users. 4. Future developments could lead to real time online banking with your mobile phone. at least in terms of functionality. Secure Element Issuer: personalizes the chip with the Secure Element. 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. 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).10. 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. Mobile Network Operators: provides the infrastructure for communication in remote applications. which would be an enabler for Point of Sale payments. Paysa in India.Mobile payments 2010 .44 USSD is the base of some payment methods such as SharEpay in South Africa. Trusted Services Manager: enables the service provider to use the Secure Element. 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. mPay in Poland and SEP in Bulgaria. SMS and NFC. many of which would be settled via payment systems based on the platform. These trends will provide a positive impetus to the development of mobile payments. Mobipay in Spain.9 Increased broadband and the merging of channels High speed broadband internet is increasingly available on mobile devices. 4. there will be little difference between our mobile devices and our laptop computers. — — — — — . The continuation of these two trends implies that in the near future.10 Emerging ecosystem for Point of Sale NFC mobile payments 4.

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. It should be noted that in the market today both financial institutions and mobile network operators play the roles of Secure Element issuers.45 . 4. typically the smartcard that also contains the phone’s subscriber identity module or SIM. 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.10. — — — .Recent technical developments and implications — End users: uses the services offered by service providers with Secure Element enabled mobile devices. Collaborative model: financial institution and mobile network operator collaborate to fulfil the role of the Trusted Services Manager. On a separate chip or smart card in the phone. as listed below and depicted later in a GSMA provided diagram. service providers and trusted services manager. — — There are four main options for the fulfillment of the Trusted Services Manager. Embedding the secure element in the phone itself. 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.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). — 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.

4.11 Conclusion
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

Technology SMS

Advantage Available and understandable to every cell phone user

Disadvantage Expensive, recipient not always available

Use Banking, Remittance

Examples Rabo SMS betalen (Netherlands),

USSD

Available to every cell phone user

Not user friendly interface Most phone users worldwide are not able to use it

POS, Banking

mPay (Poland), MobiPay (Spain)

Internet

Connects to user experience,

Banking, POS (if real time), Remittance

Table 4-1: Mobile technology advantages and disadvantages

Figure 5-1: Geographical dispersion of mobile payment initiatives The mobile payment services offered differ per region. Mobile payment services include mobile parking. mobile ticketing. trends and issues from analysis of global pilots and initiatives 5. In developing countries. In some Asian countries there is a low internet penetration. 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. SMS or mobile internet. In Western Europe the situation is different again as . and mobile remittance. the focus remains on mobile money transfer via SMS. which are underserved by the banking industry. 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. mobile Point of Sales (POS). a comparatively high mobile adoption and a push by the operators to offer mobile payments like mobile POS and mobile ticketing. However.5 Lessons.1 Mobile payments The mobile payment market is very fragmented with many different payment services and payment technologies. The mobile payment services are based on different techniques like Near Field Communication (NFC).

Of the listed initiatives in chapter 7. Examples . but currently many NFC based mobile payment services are being tested. 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. Figure 5-2: Geographical dispersion of techniques used In Western Europe mobile payments are mainly offered using SMS. The next section provides more details of the examples listed below.51 . This is especially the case for NFC mobile payment methods. 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.Lessons.

while other NFC pilots also include POS payments in shops (the O2 wallet in the London Underground mobile ticketing trial in the UK). M-Pesa (Kenya) Table 5-1: Geographical dispersion of mobile payment services. 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). 5. Paybox Austria enables consumers to pay for parking with an SMS sent from their mobile phone.Mobile payments 2010 . technologies with examples Pilot Available Available Available Available Rabo Mobiel (Netherlands). Beep (Netherlands).52 Region Service Technology Pilot or commercially available Examples Touch&Travel (Germany). Some NFC pilots only focus on transport (Touch&Travel in Germany). Norway) Mobipay (Spain) Obopay (US) 5. 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 in Austria offers SMS based mobile parking tickets while NFC based mobile payments are being offered by Payter in the Netherlands. In the Netherlands.3 Mobile ticketing for public transport or events In Western Europe many pilots have been launched to test NFC in relation to public transport. Consumers can pay for parking by holding their mobile phone over a NFC reader upon entering and upon leaving the garage. Paybox (Austria) Luup (Gemany. .2 Mobile parking payments For mobile parking payments two technologies are being used: NFC and SMS. the company Payter offers mobile payments by NFC in Rotterdam.

200 test users have the opportunity to try out a service that is scheduled to be introduced nationwide for all rail passengers in 2010. Rabo Mobiel conducted an NFC trial of mobile contactless payments and is ran 19 different trials of various sizes.4 Mobile POS Paybox (Austria) offers mobile POS payments (e. and the customer receives a regular statement of journeys made. Therefore. Paybox has over 5 million customers and is accepted at 20. the handset will hold various everyday cards. including payments in a supermarket (C1000). which consists of an Oyster card for paying public transport tickets and a Barclay’s card for Point of Sale payments. Each participant of the trial received a Nokia 6131 NFC-enabled handset. All station platforms and bus stops will have 'touch points' installed. Austrian railway operator OBB has teamed up with Paybox Austria. Mobilkom and ONE contract customers can pay for their tickets through their monthly phone bills. Mobilkom has been leveraging Paybox for 3rd party content and mobile services since 2001. In the UK. Nokia and AEG started a NFC pilot last November called London Underground mobile ticketing. TranSys. in this case Oyster and Barclaycard in virtual form and with NFC functionality. and remittance (money transfer). Just like a normal wallet. vending machines or petrol station). The Austrian mobile operators Mobilkom Austria and ONE are the owners of Paybox Austria. All post-paid subscribers are automatically enabled for the service. Transport for London. The length of the journey and the ticket price are calculated at the end of the journey. tickets for (music) events.g. At this moment customers get a monthly statement with all travel data and an attached invoice. Mobilkom Austria and ONE to offer customers tickets using their mobile phones. Barclaycard. All 500 participants have an O2 wallet. 5. 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. ticketing for public transport.Lessons. As per mid 2009. Visa Europe.000 locations. 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. Other services that are available through Paybox include mobile parking. Rabo Mobiel (2006). toll ticketing. a . Touch&Travel is not an example of a mobile payment initiative according to the definition used in this report. 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). Participants will be able to test travelling on London’s public transport system but also making purchases in retail outlets. strictly speaking. a school. The OBB mobile ticket can be purchased via SMS or through the Vodafone live! portal. The Rabobank (Netherlands) is the first Western European bank that has launched its own mobile virtual network operator (MVNO) service. Customers can top up their Oyster by touching their handset on Oyster ticket machines in tube stations or at Oyster ticket stops.53 . In 2007.

Sony Corporation. 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. The deposit could be deducted at the checkout. In October 2003. NTT DoCoMo and East Japan Railway Company agreed to jointly promote JR East's Suica and e-money service. Currently 500. . Examples of the separate cards are: — Edy: Edy is a pre-paid electronic money scheme launched in October 2001 by Bitwallet. JCB. At the end of March 2005. with the purchase value appearing on the customer's credit card. KPN and NXP Semiconductors. 5 percent of which were enabled for mobile purchases.54 fast food restaurant. called FeliCa. credited to a Rabobank account.Mobile payments 2010 . — Suica: In July 2005. and the Bank of Tokyo-Mitsubishi. The initiators want to use the pilot to achieve an NFC technology breakthrough. a joint venture between NTT DoCoMo. 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. and cinema ticketing. Sanwa Bank. They then entered a PIN code as usual into the POS reader and the transaction was complete. LogicaCMG. or donated to charity. In addition to the possibility to pay with the mobile phone. vending machines. NTT DoCoMo has integrated FeliCa contactless technology into mobile phones. Services available to Suica card users were made available on FeliCa enabled handsets from end January 2006. enabling owners to access multiple applications which are currently available through separate cards. DDI Corporation. Toyota Motor Corporation.000 people use the Suica system.2 million cards in total. Customers could pay for their shopping by simply holding a mobile next to a reader at the checkout. AEON Credit Service. — QUICpay: In July 2004. the international payment brand. bottle deposit receipts could also be saved on the phone. Through the joint venture. Rabobank. 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. During 6 months. NTT DoCoMo formed a joint venture with Sony called FeliCa Networks to develop Sony's contactless card technology. one hundred customers of the C1000 supermarket in the small town of Molenaarsgraaf could pay for their shopping by means of their mobile phone.1 million transactions per month. Bitwallet reported that it had issued 9. It also stated that the Edy card was usable in 20. Schuitema (C1000).000 member shops and generates 7. and NTT DoCoMo jointly announced QUICpay payment solution for cards with contactless chips. The pilot was an initiative of RFID Platform Nederland. Sony Finance International. The Japan Research Institute. 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. In Japan. The Suica card is a pre-paid ticket that can also be used in some shops to make purchases. Denso Corporation. QUICpay can also be used by FeliCa enabled handsets. mobile payments are very advanced. for use in mobile phones. the credit card issuer.

The common area has been designed for services that require high security such as payment and ticketing.5 million subscribers in Kenya conducting 2 million transactions a day. M-PESA had 6. customers can carry out m-transactions and m-payments. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service that offers financial services to mobile phone users. The rate of early adoption of M-PESA has been very encouraging. Through specific M-PESA agents. M-PESA’s services are available only to M-PESA account holders and certified agents. Sending money from the mobile phone can be done through SMS or mobile internet.Lessons. As of mid 2009. the transfer is conducted by SMS. 28. M-PESA is an alternative solution – it is described and understood by the Kenyan regulators as a mobile payments system.5 percent charge for adding money from a debit or credit card. Within the first 3 months (March 2007-June 2007) there were 111. In 2009. the service helps mobile operators drive increased messaging and data traffic. The mobile operator. In 2007. Unlike mobile transaction schemes which add a new channel to existing banking services.6% of Osaifu Keitai compatible mobile handset owners are using the Osaifu Keitai function.55 . Mostly. and is managed by FeliCa Networks. M-PESA uses a network of agents. 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. 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. it is not linked to the clearing system. attract new subscribers. For services to be enabled in this area the service provider needs to make an application to FeliCa Networks.000 registrations and 450 active agent outlets. 5. while linking to a bank account is free of charge. differentiated service to customers. who in turn allocates space on the FeliCa chip for the application. NTT DoComo invested a vast sum in promoting mobile payments. Obopay charges a fee of USD 0. and offer an innovative. . 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. provides the new account holder with a SIM card that enables transactions using an application running in the SIM Tool Kit (STK) environment.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. Safaricom. The agents operate a float of M-PESA value plus a cash float at each outlet. and also pay cash in and make cash withdrawals. a SMS-based payment service targeting the under-banked. The full commercial launch was initiated in March 2007.10 for sending money and a 2. Limiting the transaction network to M-PESA account holders and agents allows MPESA to avoid using a clearing system. pre-paid mobile subscribers in Kenya on a pilot basis in October 2005. They rolled out their own proprietary point of sales infrastructure and even purchased a bank. Safaricom and Vodafone launched M-PESA. According to Obopay.

the bank decided to launch its own mobile virtual network operator (MVNO) service. 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. M-Pesa Kenya). One example is the Rabobank (Netherlands) that launch transactional mobile banking services in 2003. independent service provider centric (Obopay US) or collaborative (Mobipay Spain. In the Philippines. It is possible to use the money stored on these cards in many stores.Mobile payments 2010 .6 Lessons about drivers and barriers 5. Rabo Mobiel. Business models can be bank-centric (Rabo Mobiel Netherlands). Finding that barriers like unclear costs and a poor user experience were deterring potential mobile banking users. A user can have up to KES 50.000 in their M-PESA account. which are effectively stored value cards. Bank centric The bank centric approach to mobile banking has been taking by a number of banks. Only Safaricom subscribers can send M-PESA payments. but the recipient need not be a subscriber or even a bank account holder. each with uncertain outcomes. It can for instance design the tariffs to encourage the use of mobile banking services.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 . Many mobile phones in the country are funded by pre-paid cards. is the business model that delivers value to all players in the ecosystem. in the Netherlands in late 2006. but may also be other retailers such as petrol stations and supermarkets. Several different business models are possible. with no minimum balance. It can fully control the mobile banking offering. DoCoMo’s OsaifuKeita). The advantage of this approach is that Rabobank is in charge of the ecosystem. The M-PESA functionality also extends to depositing and withdrawing money at registered M-PESA agent outlets. 19 Not discussed in this chapter. The relatively low maximum balance is presumably an attempt at limiting the opportunity for money laundering. and charges are levied on a pay-as-you-go basis. 5.1 Business models A major driver in the adoption of mobile payment services in general. which are typically Safaricom dealers. mobile operator-centric (Paybox by Mobilkom Austria. There is no credit facility per se available on M-PESA.6.

The mobile operators control the mobile service value chain and the payment value chain. trends and issues from analysis of global pilots and initiatives The acquisition of Rabo Mobiel customers is however slow. 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. the average mobile user is more likely to be using an advanced mobile network and the up-take of mobile data services is high. Some of these drivers of mobile payments cannot be translated to the Western European market. NTT DoCoMo has invested a vast sum in promoting mobile payment and they rolled out their own proprietary POS infrastructure. However. NTT DoCoMo had about three million mobile wallet users (out of 15 million m-wallet enabled mobile phones) and 1. telephone banking.57 . NTT DoCoMo also has an operator centric approach towards mobile banking. Only 15-20 percent of the Rabo Mobiel customers access mobile banking at least once every three months. Also. established channels like ATMs. including the acquisition of Paybox and the establishment of a bank subsidiary. and internet banking meet the needs of most customers in most situations. it shows the importance of a major role in the ecosystem and using a technology with a wide user acceptance. The Dutch mobile market is very crowded which makes it difficult for any new entrant to reach a large number of mobile phone customers. Urgent banking transactions simply aren’t common enough to persuade a massmarket audience to sign up for and regularly use mobile banking services. These reasons for the slow adoption of mobile banking will also have a negative impact on the adoption of mobile payments. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service . The Austrian operator has put a lot of money and resources into the mobile payments strategy. In 2009. 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. Recently Mobilkom also introduced Near Field Communication (NFC) as a payment solution for mobile ticketing for public transport.5 million customers are using NTT DoCoMo’s mobile phone based contactless credit product. in Western European countries. The large uptake of NTT DoCoMo’s mobile payment service is caused by a number of drivers. The initial mobile payment technology of Paybox is based on SMS. 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. 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. NTT DoCoMo has a large market share in Japan and can more easily establish a cooperative business model with banks and mobile handset manufacturers. SMS is a widely available and well-known mobile service.Lessons. In 2007. Another disappointment is the relative low number of active mobile banking users.

with outflow remittances of USD 16 billion and USD 14 billion. In 2007. 5. Offering mobile remittance services has some potential for countries with immigrants that originate from under-banked countries. Obopay partnered with Verizon Wireless to have its mobile payment applications available and partnered with Citibank to offer mobile banking services to Citibank customers. Regulation is challenging due to the complexity in dealing with differing requirements in various countries. or approximately 3 percent of the world’s population and this amount is forecast to reach more than 280 million by 2050. developing countries.58 that offers financial services to mobile phone users. This is followed by Saudi Arabia and Switzerland. respectively. Previously. respectively. This example is about mobile remittance in under– banked. Entering the remittance market is not easy. An example of the collaborative model is M-Pesa in Kenya.1.g. In a mobile operator centric business model the mobile operators have to deal with a wide range of financial regulatory concepts.Mobile payments 2010 . mobile phones/mobile wallets in developing countries). the top three inflow remittance countries were India.6. mobile operators and credit card companies joined forces.6. Collaboration with financial intermediaries or independent service providers with an established international payment infrastructure . and the now defunct Mobipay in Spain that was a joint venture by all Spanish mobile operators and 80 percent of the financial institutions. but also e-money and payment regulation. Other examples include Payez Mobile in France in which banks. which were estimated to have received USD 27 billion. Also the challenge is to support money transfer from multiple starting points (such as bank accounts in developed countries) to multiple end points (e. USD 25 billion and USD 17 billion in remittances. Barriers to enter the international remittance industry are high due to the regulatory requirements and the large undertaking to build out the technology infrastructure.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. The United Nations cited that the number of immigrants worldwide is roughly 200 million. This example is very difficult to translate to Western Europe. The United States dominates in outflow remittances.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. China and Mexico. 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. sending out USD 42 billion in 2006. such as Anti Money Laundering (AML) and the Combating Finance of Terrorism regulations. Mobile banking businesses in developing countries are mainly successful because the countries are under-banked. 5. Offering international remittance is a specific segment on its own with many problems to be solved.

However mobile operators have to provide the NFC enabled mobile phones. 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. it is wise to at least use accepted technologies such as SMS. In order to monetise this enabler role. The SMS capabilities can be used for basic functionalities like bank account enquiries or SMS based payments or ticketing. Other NFC based services include mobile ticketing. mobile operators and financial institutions can reach customers who don’t have mobile internet yet. transit operators. 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. Mobile internet is not yet widely adopted in Western Europe compared to e. Short-term benefits.g. 5. retailers and other service providers for downloads of the applications to the SIM and renting space on the card. Orange also could earn significant revenue from additional data traffic.59 . It is also unknown what the maximum mobile internet penetration will be in the next five years. However. such as from monthly downloads of transit passes to the phones.6. In order to reach as many potential mobile payment customers as possible. only one NFC- . SMS-based mobile banking will generate only modest mobile data traffic and revenues. By offering SMS-based mobile payment services. 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. Currently.3 Technology The type of technology used is one of the drivers for uptake and usage of mobile payment services. otherwise the uptake of the service is limited. Orange France sees a business case taking shape in the form of fees it could charge banks. loyalty and access control services. It is relatively cheap and easy to use. mobile operators should find ways to generate revenues from application owners. NFC enables multiple contactless applications on mobile phones. This would however not be attractive to MNOs that charge flat rates for data services. Japan. may be limited because these transactions don't need mobile networks. NFC Near Field Communication (NFC) is the technology of choice to develop proximity transactions between mobile phones and contactless readers. like banks and transport companies. From the mobile operators’ perspective. SMS SMS is available on all mobile handsets.Lessons. and is not restricted to payment or transport. The NFC business case will be a challenging one for mobile operators. in particular from transport and payment applications. 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.

mobile operators could ask for a fee for the use of their SIM “real estate”. retailers and other service providers. Acceptance by merchants is driven by a large addressable base of customers for the merchants. 5. Sagem. 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. On the other hand there have to be sufficient merchants accepting contactless payments before consumers choose to adopt the new payment mechanism. Paying with a mobile phone should add some benefits to end-users and merchants compared to existing payment methods payments. The PSD offers opportunities for those involved in mobile payments. After the formal adoption by the Council and the European Parliament and the publication. If mobile phones become a core payment device at POS. Contactless payment adoption faces the classic chicken and egg problem that any new payment technology faces.60 enabled mobile phone is commercially available. sees a business case taking shape in the form of fees it could charge banks. This would dilute banks revenues on mobile payments at a POS.Mobile payments 2010 . efficient and secure as 'national' payments within a participating nations. As mentioned before Orange. The target is to make cross-border payments as easy. The PSD aims at establishing a modern and comprehensive set of rules applicable to all payment services in the European Union. and the perception that the service is secure. public transport operators.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. the provisions of this Directive will need to be implemented by all participating nations by 1 November 2009. Norway. and a few mobile phones like (Motorola. mobile payment at the Point of Sale are compelling if it is cheaper. The PSD also seeks to improve competition by opening up payment markets to new entrants thus fostering greater efficiency and cost-reduction. Acceptance by end-users is based on: easy to use service. For banks. In addition to delivering value to all players of the ecosystem and accepted technologies used. . other drivers for uptake of mobile payments are the acceptance by the end users (customers) and the acceptance by merchants. Iceland and Liechtenstein. At the same time the Directive provides the necessary legal platform for the Single Euro Payments Area (SEPA). Introducing NFC mobile payments at POS means an additional investment in infrastructure. more effective or carries less risk than other non-cash payments. and NEC) are used in pilots. This means there should be interoperability across different operators and/or banks.

non-banks that consider taking the opportunity granted to them by PSD to enter the payment services market. access to directories etc. the paid delivery of news headlines. PSD constitutes an opportunity to become a payment services provider. implementation and governance are the responsibilities of individual Member States.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. trends and issues from analysis of global pilots and initiatives The PSD is a European level regulatory framework. These licenses are subject to very strict regulations and are hard to obtain. For the former group. does NOT fall .7. one had to obtain a license to become a credit institution (banking license or electronic money institution license). creation of actual legislation. 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.61 .Lessons. 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. which was until November 1st 2009 the domain of financial institutions. For the latter group. PSD constitutes an additional set of regulations to comply with.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. distribution or search facilities. weather forecasts.7. interpretation of this framework. This means that the sale of ring tones. 5. 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. since important groups are excluded from the scope PSD. — 5. 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.

5. Users should be allowed to easily repudiate consent and authorisation. This rather strict rule will also apply to holders of a full banking license (who also need to comply with PSD). Fulfilling the ongoing information duty to the central bank will cost approximately 10 hours per year. 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.7. 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.62 under PSD regulations. data. These include proving the existence of sound administrative. According to the Dutch Central Bank (DNB). according to DNB. Capital requirements. these include regulations aimed at achieving consistency around terms and conditions.100 in fees and approximately 40 man hours for gathering the necessary information.000. Technical providers to payment institutions such as providers of processing. Payment institutions . 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. proper internal control mechanisms. The PSD does apply however. the expected costs for a license are EUR 3. the excess in liability lies with the provider. data storage. display of foreign exchange rates before point of acceptance and documented customer receipts and acknowledgements. authentication and IT communication providers are not classified as payment institutions and therefore do not need to comply with the PSD. 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). Maximum payment execution time will need to be one day once the PSD is fully in place (31 December 2012). 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. meaning that the provider of such services does not need a license to continue its business. This license to operate as a ‘payment institution’ is issued by the national banks of Member States. directors and managers that are of good repute.Mobile payments 2010 . payment institutions will be required to maintain a certain minimum level of capital.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’. Consumer information and protection. Consumer legal liability is limited to €150. With this time legally being limited to one day – this source of revenue will become negligible. For mobile payments this will be an initial amount of €50. For mobile operators that consider setting up a payments service. risk management and accounting procedures.

63 .Lessons.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. . 5. Payment institutions must not charge fees for the closing of accounts. Protection of consumer funds where payment institution also engages in non payment related activities. Additional remarks: The directive allows Member States to not require a license from Payment Institutions with a turnover of less than €3 million. In practice it means that Member States can turn a blind eye to small payments initiatives with a turnover of under three million euro. should the turnover reach EUR 3 million.7. 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. However. PSD mandates the Member State to enforce PSD regulations upon the payment initiative. payment monies must be kept separate from non payment monies and activities.

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. financial compliance management and access to a merchant network. namely the financial institutions and the mobile network operators.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. For example. Similarly mobile network operators have the experience and billing infrastructure for processing large numbers of relatively small transactions.1 Desire to diversify from core businesses The turn of the millennium. some of these (in no order of priority) are: 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. 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. Financial . Fast forward to 2010 and stakeholders have realized that it is more cost effective. this is core expertise of financial institutions. The resulting reflection within these organisations revealed that while the Internet makes it slightly easier to access the customer by providing another cheaper channel.1. 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. This chapter lists just some of the key reasons and some of the emerging trends around cooperation. the profitable provision of payment functionality from a financial viewpoint requires knowledge and experience in risk management.1. 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. the internal and back office processes required to offer the products and services of another vertical industry requires years of learning and experience. 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.6 Stakeholder cooperation and standardisation There are many reasons why cooperation between key stakeholders has been difficult for mobile payments. 6. 6. The bursting of the dot com bubble put an immediate stop to such plans and thinking.

In a cooperative model. 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.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. 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. 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. SIM and network by the mobile network operator.1. to avoid having different industries create different standards.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. 6.4 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. 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. 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.65 .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. cross and up sell. financial institution or mobile network operator.1. which would reduce the value of mobile payments for consumers and slow down industry development. 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. At the time of writing these two bodies were sharing thoughts on cooperation . 6.1. 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. a role created and defined in the context of NFC payments. Key to this approach is the role of the Trusted Services Manager. 6.

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). cumulative over 2007 . Similarly mobile payment pilots are being launched within Europe and around the world using proprietary messaging. severely limiting the growth of e-invoicing and the potential saving of up to 238 billion Euros. 6.2.2 Standardisation 6. The SEPA is expected to result in a total saving of €123 billion the European Union. Creation of such islands will invariably lead to slower customer and merchant adoption and the survival of inefficient solutions with higher end user costs. Needless to say continued cooperation between the stakeholders will be critical to the development of mobile payments. without the use of common Europe wide standards. operational and governance protocols.Mobile payments 2010 .eu/rapid/pressReleasesAction. and are critical for ensuring widespread access to mobile payment services.do?reference=MEMO/08/52&format=HTML&aged=0& language=EN&guiLanguage=en .201120. In Europe within the financial domain payment solutions have been created in the past within geographic islands. An example from the financial domain can help to clarify this further. not specific to any operator or payment scheme. 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. 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 mobile payment standards.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. 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. ensure interoperability across platforms and services. interoperability will become 20 http://europa. infrastructure. 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.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. As these pilots succeed and continue to develop into live applications. Open standards.

The fact that the whole value chain is represented in OMA marks a . Open Mobile Alliance (OMA) OMA was formed in June 2002 by nearly 200 companies including the major mobile operators. A number of key handset manufacturers including Nokia.67 .7 billion customers participating in the initiative.2.e. There are 52 mobile operators with 1.Stakeholder cooperation and standardisation more critical and more costly.2 Standardisation initiatives Simpay Simpay was founded by the mobile operators Vodafone. GSMA and EPC have started a formal relation in 2008 with regard to mobile payments. The GSMA is supportive of the UICC solution. which was proposed to ETSI as a standard in October 2007 and ratified in February 2008. 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. 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 various combinations possible will be described in section 8 of this report. to link the UICC contained within the mobile handset with the phone's embedded NFC chip. 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. Motorola and Samsung have joined the GSMA ‘Pay-Buy-Mobile’ initiative and have given support to the payment application residing on the UICC. Telefonica and Orange. device and network suppliers. the mobile payment application is located on the smart card provided by the mobile network operator. such as credit and debit payments. information technology companies and content and service providers. 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. The NFC chip can communicate with existing contactless payment systems to deliver a wide range of services. i. T-Mobile. The time to act in developing standards for the mobile payments industry is now while live implementations are still few and far between. Simpay has unfortunately a notable failed attempt at multi-national mobile network operator standardisation and was closed down in the middle of 2005. 6.

Iceland. OMA is aiming to consolidate into one organisation with all specification activities in the service enabler space. Open and non-proprietary standards are to be supported. based on the principles provided by the GSMA. electronics and broadcasting. TETRA etc.. Mobey Forum first stated its requirements for mobile financial services in its Preferred Payment Architecture 1. ETSI is officially recognized by the European Commission and the EFTA (European Free Trade Association. ETSI announced the completion of Europe’s NFC standard. European Telecommunication Standard Institute (ETSI) Since its creation in 1988. The Mobey Forum membership consists of a number of large banks. Key tenets of this document were: — Service provisioning by banks. Norway and Switzerland) secretariat. DECT. Several banks are already entering mobile related services and creating solutions based on some of the work done by Mobey Forum. networking and interaction with the industry.68 change in the way specifications for mobile services are created. operators and terminal manufacturers have to be independent from each other. 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. with different standards and specifications bodies representing different mobile technologies. payment processors and mobile network operators. broadcasting and information technology. published in 2001. Mobey Forum The mission of the Mobey Forum is to facilitate banks to offer mobile financial services through the exchange of information. which consists of Liechtenstein. In February 2008. GSM. The main focus is on the development of sustainable business model alternatives. — — — . The European Telecommunications Standards Institute (ETSI) has produced both wireless and wired standards (e.). Rather than keeping the traditional approach of organizing activities around 'technology silos'. While its prime objective is to provide a forum for the industry. as well as standards relating to telecom. ETSI develops standards and other technical documentation for telecommunications.Mobile payments 2010 . technology vendors. The Open Mobile Alliance (OMA) has established the M-Commerce and Charging working group (MCC) that is also working on mobile paymentrelated issues. working independently.1 document. Banks manage the authentication in their banking and payment services.g. The MCC currently has liaisons established with Mobey Forum. it also collaborates with other organisations through various partnership projects.

Educate consumers and enterprises about NFC. ensuring interoperability among devices and services. — — — . 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. and PCs. To generate a mobile signature the user inserted a Smart card into a card slot. NFC Forum The Near Field Communication Forum was formed to advance the use of Near Field Communication technology by developing specifications. In March 2001.2 Crypto SignText implementation in the WAP browser stack.69 . Microsoft. applications developers. and educating the market about NFC technology. four German banks . the NFC Forum: — Develops standards-based specifications that define NFC device architecture and protocols for interoperability. Encourage the development of products using NFC Forum specifications. — — — To meet these goals. the Forum now has over 130 members. Materna. A prototype mobile signing device comprised a Siemens IC35 organizer with an integrated WAP browser and a Smart card reader. Sema Group. 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. financial services institutions. Ericsson. Siemens and TC TrustCenter has plans to demonstrate the deployment of electronic signatures using a ‘mobile signing device’. Commerzbank. Manufacturers. The digital keys were stored on the Smart card and the signing application was based on the WAP 1. Works to ensure that products claiming NFC capabilities comply with NFC Forum specifications. Formed in 2004. Work to ensure that products claiming NFC capabilities comply with NFC Forum specifications. work together to promote the use of NFC technology in consumer electronics. Encourages the use of NFC Forum specifications. Educates consumers and enterprises globally about NFC. mobile devices.Deutsche Bank.Stakeholder cooperation and standardisation MoSign The MoSign project (short for Mobile Signature) initiated by the companies Deutsche Bank.

on an NFC-enabled mobile device. and the support infrastructure used. In the next section potential risks for the breakthrough of mobile payments are discussed. access and loyalty. 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. A common methodology will help to reduce the cost of launching new NFC applications by removing the need to develop. MasterCard International and Visa International to manage. StoLPaN’s primary goal is to define a transparent. maintain and enhance the EMV Integrated Circuit Card Specifications for Payment Systems. The secondary objective is to demonstrate the use of the methodology in the high street. 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. StoLPaN calls itself the NFC mobile services standards consortium. Recognising that important standardisation work has already been undertaken within the industry. uniform methodology for managing multiple services. EMVCo's primary role is to manage. For consumers. such as payment. EMVCo EMVCo LLC. 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. 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. certify and manage multiple versions of the same application.Mobile payments 2010 . These requirements will include a personalisation infrastructure for payment applications and approval processes for mobile devices supporting contactless proximity payments. the implementation of a uniform platform will help create a consistent and convenient user experience across all the NFC services on their mobile handsets. . The reasons why stakeholder cooperation has been difficult to achieve so far have been explored and the current status of cooperation has been examined. EMVCo intends to bridge the gap between the Near Field Communication (NFC) technical standards. maintain and enhance the EMV Integrated Circuit Card Specifications to ensure interoperability and acceptance of payment system integrated circuit cards on a worldwide basis. irrespective of the handset type or manufacturer.70 StoLPaN StoLPaN is an abbreviation for Store Logistics and Payments on NFC.

www. mobile payments and e-invoicing industry. wherever you are. 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.thepaypers. globally. 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™. and mobile banking services. this application syncs and downloads the latest global payments’ news directly to the device. with a special focus on the online payment. . online banking. Their products are created by payment professionals and cover all significant developments in cards and payments. Specifically designed to utilize the features and navigation of the iPhone™. m-commerce. The Mobile Payments Update comprises several feature articles as well as short items with news from the previous fortnight. mobile ticketing.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.

Part 2 Market overview .

technology used. There clearly is an accelaration in growth of the number of pilot and initiatives worldwide. secure element. and the type of domain.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. Per initiative we will give a short description. Per initiative we will also give information (if available) on cost for usage. information on type of service. . partners. In the table below we have listed the available options. 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. 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.

Rabo SMS betalen Norway – Telenor Norway .74 The following initiatives are listed: Europe Austria – Paybox Belgium – M-Banxafe Belgium – Proximus M-Pay Belgium – Proximus SMS Belgium .Mobile Axept Poland . 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 .Ping.Epay24 UK – AvantixMetro UK – Mobile theatre ticketing service UK – Monilink UK – Payforit UK – RingGo Mobile UK – Trinity Mobile UK .Good.MB Phone Romania – ING – MasterCard trial Romania .bee Spain – Mobipay Spain .Mobile payments 2010 .Rabo Mobiel: mobile banking & NFC Netherlands .Banco Popular Español Swizerland .T-Mobile Streetgiggs Germany – Touch&Travel Germany .Banamex SMS Banking Spain .NFC Telefónica Spain . FirstBank.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.PostFinance SMS Banking Swizerland .Disneyland Paris NRC trial France – Payez Mobile France – TreiZen France .Tag Pay Germany – MobilZahlen Germany – NetBank Germany – RMV mobile ticketing Germany – StarMoney Handy Germany .Presto Park&Go Spain .MPay Wallet Portugal .Czech Telefonica O2 Estonia – Cinemon Cinemas Ticketing France .12Pay Hungary – MobilFizetés Italy – PosteMobile Netherlands – Beep! Mobile Tickets Netherlands .Ping Czech Republic . Region’s Finance.

Samba 38 Guatemala – Visa Pay Wave Peru .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 .Pago Movil Venezuela .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 .

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). Visa Africa Cameroon Mobile Money Ghana . toll ticketing.Mobile payments 2010 .7 Kenya .g.Zain M-Wallet Sierra Leone .txtNpay Ivory Coast .1 Europe Paybox Austria www.E-Fulusi Uganda Uganda .Cooperative Bank of Kenya mobile banking Kenya – M-PESA Kenya .MTN MobileMoney Worldwide – Bank-a-billion 7. tickets for (music events).paybox. mobile POS (e. Mobile remittance.com Uganda . vending machines. online shoppin. Mobile POS Type of service .Cellphone Banking Absa Sudan Saraf Mobile Zambia .CelPay Zimbabwe – Mukuru.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. gas station).at – Austria Short description Paybox offers mobile parking (via SMS).Standard Chartered M-Banking Kenya . remittance (money transfer) Mobile ticketing. NAB.Orange Money Kenya – Eazy 24. Mobile parking.

check the account balance and check bank transactions.Belgium Short description Banking transactions: payments. combination of voice call and Paybox PIN EUR 19 subscription fee per year MNO: ONE and Mobilkom . M-banxafe www.77 . casinos. The amount of the transaction is charged to the Proximus bill. All post-paid subscribers are automatically enabled for the service. he keys a payment request into his mobile telephone. Activating the service requires a ‘3G’ SIM card from Gemalto and a trip to the ATM to green light it. Merchants: lottery. the cost of the product or service is deducted from the bank account. retail shops.html . Costs for checking the account balance or transfers are also EUR 0. Once a potential user signs up. Technology: NXP Semiconductors. Mobile order Paybox PIN per SMS. ÖBB Railways. Subscription fee is a hurdle for diffusion. Cost for usage Partners Additional information Potential One of the bigger mobile payment players. . 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. SMS confirmation. Nokia Austrian mobile operators Mobilkom Austria and One are the owners of Paybox Austria. Business customers use paybox for corporate services. Wiener Linien. large client base. cigarette vending machines.Mobile payment services and pilots Type of technology Domain Secured through SMS. online shops.be/nl/postpaid_banxafe. The payee receives payment details by SMS and accepts them using a PIN code.25 per request.baseonline.25 including VAT to the customer and EUR 0. NFC Mobile payment.49 excluding VAT to the merchant.

M-banxafe therefore works for debit. The technology used (WAP) excludes a large portion of the target group. videos or digital content from the Vodafone live! portal.html . Additional information Potential Proximus M-Pay http://customer. For the low-value purchase segment.78 Partners MNO: BASE. Mobile POS WAP M – Ordering A secured page on the website Free of charge Mobiel Operator: Proximus / Bango. The service is quite expensive and uses a two-sided billing system: fees are levied to both payer and payee. Technology: Gemalto. credit or top-up transactions. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential . supports the M-Pay system Customers who want to buy a ringtone.proximus.Mobile payments 2010 . The purchases via one-click payment will be stated in the monthly bill of the Proximus subscribers. music.be/nl/Mpay/index. Financial institution: Banksys. Mobistar and Proximus. Customers can make purchases of up to EUR 10. whereas other payment methods are offered at no charge to the payer.Belgium Short description Proximus M-Pay is a mobile payment system in Belgium for buying digital products online . The costs to the merchant are usually very high when using this method. 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. billing via the MNO is a viable way to increase conversion.via mobile and internet. The purchases by prepaid customers will be deducted from their calling credit. can now do so by using the Proximus M-Pay payment system.

html .50 paid for tickets on board the tram. Within a few seconds they receive an SMS with confirmation of their ticket. 500 Belgacom . It will otherwise cost EUR 1. reload can be done via buying credit or upload via an ATM (PIN code). M-Delivery. which is cheaper than the EUR 1. Partners Additional information De Lijn For SMS ticketing with the mobile phone.proximus. who typically charge 25-35% of the transacted amount as a fee for collecting the money.15 for the SMS.15 per SMS will probably not cover the costs for retrieving the money from MNOs.be – Belgium Short description Belgian MNO Belgacom lauched a mobile payments trial based on NFC-technology in Belgium in March 2009. M-Payment None. In order to pilot the NFC service which was added to the m-payments service. As a promotion it's offering the first SMS ticket for free.be/en/sms_Ticketing/index. which acts as proof of payment. Proximus M-Pay needs to be activated.pingping. In the project with Accor Services.20 for the fare plus EUR 0.Mobile payment services and pilots Proximus SMS-Pay http://customer. 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. M-Ordering. Belgacom has partnered with Belgium food retailer Delhaize. The costs of the ticket will be deducted from the call credit or will be charged on the mobile phone bill. Also. Ping. Type of service Type of technology Mobile ticketing Users send an SMS to a short code before getting on the bus or tram.Ping www. the EUR 0.Belgium Short description SMS ticketing for the public transport system De Lijn in Antwerp and Ghent. For buying a transport ticket.79 . provider of service vouchers to companies Accor Services and Coca-Cola. no PIN is required.

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. At present. The NFC transit application will be available for download through the Telefonica O2 network. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M – Payment PIN None MNO: Belgacom. Mobile POS NFC M – Payment. On top of being able to pay for transport rides. Coca-Cola. M – Delivery PIN . Technology: Accor Services Additional information Czech Telefonica O2 www. the commercialisation of Electronic Ticket Restaurants is not possible in Belgium due to the lack of guidelines which regulate their use. 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.o2. Retailers: Delahize. running from March – December 2009.Ping accounts at restaurants equipped with contactless readers. on top of using the city website.cz.Mobile payments 2010 . This will enable them to make contactless payments using electronic Ticket Restaurants meal tickets stored in their Ping.80 employees have been given NFC tags which will be linked to their mobile phone numbers. Type of service Type of technology Domain Secured through Mobile ticketing.html . trial participants in Pilsen will use their NFC phones to purchase goods at participating retail shops as well as buy tickets for entertainment areas.

delivery is via SMS. Technology: NXP (MiFare) The mobile wallet displays the available bus tickets. The issuer of the ticket does not need to print the actual ticket. streamlining entry. as the mobile phone has a permanent share of pocket. Cinamon's mobi-ticket contains a unique 2D barcode as well as information about when the film starts. when two people end up having the same barcode for the same cinema seat.Mobile payment services and pilots Cost for usage Partners Additional information Free during pilot MNO: Telefonica O2. Latvia.cinamon. The actual purchase is made online. Lithuania Short description Cinamon Cinemas customers can now buy tickets on the company's website and opt for mobile ticket delivery. the customer's seats and what screen the film will be shown on. probably saving costs outweighing the extra costs of sending an SMS. the travel history.Estonia. . The barcoded message is then scanned at entrance.81 . Vista Entertainment Solution Customers can go straight to the usher point in the cinema.ee . The recipient is less inclined to forget his/her ticket. A cinema ticket is then generated and delivered directly to the customer's mobile phone in the form of an SMS. the balance of the transit e-purse and the last 4 transactions. Potential The initiative is a win-win for both recipient and issuer of the ticket. which might cause problems for the cinema owner. the SMS containing the 2D barcode can easily be forwarded. Since the method is based on SMS. 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. Mobiqa. Cinamon Cinemas Ticketing www.

Payments will be charged directly to the user's Crédit Mutuel or CIC bank card. Type of service Type of technology Domain Secured through Cost for usage Partners Disneyland Paris. CIC.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.Mobile payments 2010 .payezmobile. which is owned by Credit Mutuel CIC. 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. Developed in partnership with French financial services providers Credit Mutuel and CIC. Participants will be using a Sagem My700x Contactless NFC phone offered by mobile operator NRJ Mobile. CIC. NRJ Mobile Mobile POS NFC Mobile Payments Payez Mobile www. Crédit Mutuel. Credit Mutuel. Groupe Caisse d’Epargne. the trial will include shops and restaurants in Disneyland Paris area.82 Disneyland Paris NFC trial France Short description Disneyland Paris plans to roll out an NFC and contactless card payments pilot in October 2009. 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. for mobile POS and ticketing.000 for contactless readers. The testers' number is expected to reach 100 for NFC phones and 1. .

The client ‘signs’ the transaction with his mobile phone by placing the phone in the terminal.tagnpay. The technology used for authorisation is dubbed NSDT. In a few seconds. money transfers. ATM cash withdrawals and budget or savings management. MNOs: Bouygues. The consumer (payer) enters his mobile phone number and secret PIN. It is however the first pilot to achieve interoperability between different MNOs and banks. The payment procedure works as follows: the merchant enters the amount due on a special Tag Pay terminal. Orange. the clients’ phone rings. Oberthur. Africa. Ingenico. Tag Pay www. Société Générale. The amount is credited from the consumers’ pre-paid account. Additional information The Payez mobile service is started November 2007 and it includes 1.com – France.83 . this is easier than for a full-scale commercial roll out. Potential A project that manages to align a whole plethora of banks and MNOs must have potential.Mobile payment services and pilots La Banque Postale. NJR Mobile and SFR. Cards: MasterCard WorldWide. the business case for NFC-based POS payments is far from positive. Pole-Tes and Sagem Monetel. LCC.000 customers and 200 sales outlets located in the cities of Caen and Strasbourg. Type of service Type of technology Domain Mobile POS WAP/Internet M – Payment . Inside Contactless. For a pilot however. Payez Mobile was previously known as Pegasus. and the parties involved have not managed to solve that issue. India Short description Tag’n Pay is a wallet application and can be used for retail transactions at the point of sale. a message appears on the terminal and on them mobile phone. Visa Europe Technology: Gemalto. If the transaction is approved. The service also intends to check for interoperability. Also.

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. India. Congo. Clients can require a pin code for all payments for additional protection. Type of service Type of technology Domain Secured through Cost for usage Mobile parking IVR M-Payment. Malians in France can pre-pay purchases at specified stores in Mali. All transactions are confirmed by text message. making them useless if intercepted and replayed. Lübeck. which are retrieved and paid for using the mobile phone of the intended recipient. Partners Additional information MobilZahlen www. The service is already being piloted in Kenya. The user pays per minute. Augsburg. Hamburg. username/password to change details online EUR 0. Celle and Friedberg. 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. and the Democratic Republic of Congo.mobilzahlen.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.19 per transaction . M-Order None. OTPs are only valid for 1 transaction and have a very short life span. Zambia. Tagittude Each time the consumer makes a transaction. Tagattitude teamed up with Telemedia Group and LAM to offer TagPay in Mali. Drivers can use their mobile phones to pay for their parking tickets in the German cities of Cologne. encrypted information is embedded in an audio one-time password (OTP) that is sent to the payment server through your phone’s audio channel. which aims at people seeking more convenience in purchasing their parking ticket. Neustadt.11 – EUR 0. South Africa. Users can purchase parking tickets by calling a toll-free number. Through TagPay.Mobile payments 2010 .

receives an SMS to approve the order and the money is automatically transferred from their account to the account of the seller. Mobile remittance SMS M-Payment Mobile number plus PIN. MobilZahlen is a cheap. Not disclosed yet MNO: Vodafone.85 . Instead of the user having to predict the amount of time he wants to park beforehand. The subscription procedure however is quite complicated. MPay Germany Short description Mobile payment service for online purchases as an alternative to online payment services like PayPal or Firstgate's Click&Buy.Mobile payment services and pilots Partners Additional information Potential Community parkings in participating cities The service fulfills a need of the parking consumer. Mobilzahlen allows users to pay the parking fee per minute. but with large German cities making the service available. This method saves the consumer the trouble of funding a new wallet. The customer buys something online or via a mobile portal. A similar service is the UK fails to take off. enters her/his phone number. O2 Technology: Paybox Additional information The service is based on automatic withdrawals from bank accounts and SMS payments. Type of service Type of technology Domain Secured through Cost for usage Partners . but confronts him with the necessary red tape. he can start his parking ticket the moment he parks and stop it the moment he takes off again. convenient service with a lot of potential. as the MobilZahlen account is connected to a bank account.

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. users can view their account turnover. transfer money.Mobile payments 2010 . The ticket will now be stored in the embedded secure element of the NFC.netbank. 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.de.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. which checks the validity of the ticket. 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. At mobil. The main target of this enhanced ticketing solution is to enable customers to purchase mobile tickets even more spontaneously and easily. Type of service Type of technology Mobile ticketing NFC . set up standing orders and much more. and can be inspected just by holding the device close to the inspector’s reading device. Other European banks are currently using the platform for their mobile banking portal. RMV introduced its mobile ticketing scheme in 2006 and is one of the pioneers in this area.

This pilot is far ahead of its time. the service is available through Star Finanz and Kreissparkasse Düsseldorf building society. this pilot comes too soon. the service announced to expand the geographical reach of the pilot to all eleven cities served by the RMV. Estimates are that in 2011 only 4% of all new phones will be NFC-enabled. Initially.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 fee is EUR 6.87 .00 /month. traffiQ and the traffic association Frankfurt (RMV). Potential StarMoney Handy www. 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. After a four months Mobile banking WAP M-Payment Partners . Additional information The scheme was one of the first to introduce NFC-enabled services. The market they aim for (travellers) is well-picked. It takes deep pockets to continue a service like this with so little prospect of wide-spread adoption.starmoneyhandy.0 Handy software. M-Delivery. Nokia and T-Systems partner with independent mobile retailer SMS Michel Communication to market NFC-enabled mobile phones. With less than 1% of all new mobile phones produced in 2008 being NFC-enabled. M-Payment Embedded Free during trial The partners for this project are Nokia. even accounts with different organisations. In June 2008. which includes unlimited free phone calls to family and colleagues. T-Systems. Also ticket inspectors need to carry specially developed devices to check the validity of tickets.Mobile payment services and pilots Domain Secured through Cost for usage Partners M-Order.

customers get the StarMoney Mobile 2.co. which can be scanned at the concert's location using barcode scanners Mobile ticketing SMS M-Delivery None. who regularly travel on the ICE route Berlin-Hanover.pdf .Germany Short description German mobile applications developer Mindmatics has developed the mobile ticketing service for the T-Mobile Street Gigs. 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. StarMoney Handy is commercially launched by five German Sparkasse banks. Additional information Once they have signed a contract.88 pilot. The trial is executed by 200 persons. T-Mobile Streetgigs http://img.Germany Short description Railway operator Deutsche Bahn and Vodafone Germany cooperate for a mobile ticketing trial that started on 29 February 2008.000 financial organisations. Touch&Travel www. The recipient is less likely to forget his ticket.0 Handy software for access to the banking systems of around 4.Mobile payments 2010 . one Volksbank and Deutsche Sparkassenverlag.pte.shtml . and the event organiser saves money in printing the tickets. For free tickets (like these).at/files/binary/2341. a series of pop concerts at unusual locations in Germany. the fact that tickets can be forwarded to friends and family is an additional advantage. The pilot will also run in a part .uk/db_uk/view/news/20080301. Mindmatics has provided T-Mobile with an online-based registration for free SMS tickets for the concert.bahn.

travelers all over Germany can enjoy make use of the service in 2010. Type of service Mobile POS . as well as technology partners Atron electronic. smart card developer Giesecke&Devrient. Potential The initiative has assumed that NFC-phones would become widely available in 2010.89 . the service is only available in Austria and Germany but Dimoco plans to roll it out in other countries. Germany Short description Austrian mobile payment services provider Dimoco has launched a new m-payment service called 12Pay. which is aimed at business customers.dimoco. This is not the case. Berliner Verkehrsbetriebe. According to the planning. In July 2007. Using 12Pay.at/en – Austria. Additional information 12Pay www. content and NFC payments. Mobile Wizard). Vodafone Germany selected Paybox as the processor to launch a national mobile payment system in Germany. Vodafone Germany enables their customer to exploit the whole potential of m-commerce for secure payments in the Internet. A technology push product.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. businesses can enable clients to pay for products and services via their mobile phone bills. Initially. With the paybox Mobiliser Products (Money Mobiliser. Motorola and semiconductor manufacturer NXP. m-commerce. TopUp Mobiliser. Consumers can confirm the payment process via SMS or web.

) consumers can pay for their parking. Bank : FHB and MPP. The preloaded wallet comes with a monthly fee. T-Mobile.06) per transaction MNO: Pannon.php . (EME Zrt. then the amount will be debited to the bank account at the end of the month.90).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. In March 2009. wireless transfer or cash deposit at one of EME’s outlets.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. Mobile Banking SMS M-Payment. postal checques.Hungary Short description With the help of OTPdirect and Elsı Mobilfizetés Elszámoló Zrt. M-Delivery PIN From HUF 15 (EUR 0.Mobile payments 2010 . the direct deduction from the bank account is free of charge.hu/eme/ENindex. Technology: Enigma In September 2008. The user can fund the wallet using credit card. the service was extended enabling participants to pay for utility bills using the service.fizessenmobillal. . 30. The amounts of low value purchases accumulate until it reaches HUF 500 (EUR 1. can buy motorbike and highway stickers and buy subscription to a journal directly from their bank account or from preloaded wallet. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Parking. M-Order.

Mobile payment services and pilots Potential With most parking spaces in Hungary connected to the system. BancoPosta prepaid or credit card.postemobile. Therefore. The service fulfills a need to pay parking space per minute and reduces the hassle of having the right change. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance.000 PosteMobile customers.it – Italy Short description PosteMobile is the first Mobile Virtual Network Operator (MVNO) in Italy. Mobile banking SMS M-Banking. top up their account and wire money from their BancoPosta account and from PostePay. Potential The internet penetration in Italy is among the lowest in the EU. Hungary however is still a cash-based society. the mobile phone is a suitable channel to conduct banking business with in Italy.000 BancoPosta customers using these services in just six months. M-Payment SIM. among the over 250. Both PosteMobile and BancoPosta are part of the Poste Italiane Group. Users send a command from their mobile phone to pay their bills. Bank : BancoPosta . PosteMobile www. Their goal is to turn the mobile phone into a real e-wallet.91 . The purchase of other goods and paying for utility bills do not really fulfill a need. it is quite easy and handy. 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 . They use their position in the mobile and banking worlds. with a software solution that allows customers of Italian bank BancoPosta to carry out payment transactions with their mobile phone. PosteMobile announced in June 2008 that it would pursue its innovation strategy by rolling out mpayment and m-commerce services. username/password MVNO rates apply MVNO: PosteMobile . The project has proven quite successful with over 200. send a telegram or a fax. Technology: Gemalto PosteMobile was launched in November 2007 and immediately started to deploy mobile-banking services to their customers.

92 companies. 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. Register at Beep. NFC payments using mobile phones are tested at (among others) the fast food chain Febo. Cost for usage Partners Additional information Service fee. the delivery takes place on the mobile phone (barcode). Rabobank/Rabo Mobiel also participates in NFC trails. mobile POS . cost depend on cost of the ticket Beep! Mobile Tickets is a joint venture of KPN and Imtech. Beep! works together with organizations such as The Entertainment Group. Type of service Mobile ticketing. The mobile phone number is the user name. Beep! Mobile Tickets www. a producer and organiser of concerts and festivals in the Netherlands. With the mobile phone number and PIN code customers can log on the internet to order tickets. Mobile ticketing for events SMS sending a barcode M-delivery. The payment is taken from a mobile wallet connected to the phone. Ordering a ticket is done by the internet.beep. 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.nl – The Netherlands Short description Beep! allows customers to pay for tickets over the internet and then receive the ticket over SMS. this success is unlikely to be repeated.Mobile payments 2010 .

In the roadmap it is the banks vision also to use mobile phones for contactless payments. MVNO Rabo Mobiel had about 125. Rabo SMS Betalen www.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. Diergaarde Blijdorp (Zoo).000 customers for its mobile service in April 2008. a codeword has to be inserted to confirm the payment. C1000. The partner within this scheme is multimedia company Talpa.93 . the Rabo NFC trial suffers from the lack of availability of NFC-enabled phones. Additional information Potential Like all NFC-pilots outside Asia.The Netherlands Short description Rabo SMS betalen is a wallet and subscription based mobile payment method. The target group is not yet used to NFC. which Rabobank is part of.g. Ironically enough. the NFC initiative has to compete with very efficient incumbent payment infrastructure.rabomobiel. For using Rabo SMS betalen (SMS payment).: Febo. At the end of the process of making a payment.nl . NFC trial partners e. making widespread adoption problematic. Type of service Type of technology Domain Mobile remittance SMS M-Payment . a customer sends an SMS to a short code to the mobile phone number of the intended recipient of the money and the amount. After that a confirmation will be sent to both sender and recipient. Payments are sent over a secured line.

established for this purpose and this project. Both companies own 50% of the stock in TSM Nordic. Although this is a viable context. Loading money into the account and receiving money is free.05. Partners Additional information Rabobank The system is based on MiniTix. Of course the sender is charged for the SMS by the MNO. transferring money from account to ‘ordinary’ bank account costs EUR 0. it is unlikely that situations like these happen often enough to attract a sufficiently large consumer base.Mobile payments 2010 . 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. Norway Type of service .94 Secured through Cost for usage None for sender until 1 January 2009. DnB Nor and TeleNor both launch a separate pilot in Oslo. a system initially launched for micropayments online. when typically no one has exact change. after that EUR 0. a trusted third party.50. Potential The much advertised context for Rabo SMS payment is splitting the bill in a restaurant with friends. Telenor Norway Short description A cooperation between Norwegian bank DnB Nor and MNO TeleNor to provide contactless payments. Rabo SMS betalen can be used by anyone with a Dutch bank account (not necessarily Rabobank’s) and a Dutch mobile phone number.

Mobile payment services and pilots Mobile Axept http://www. The user can hang up and payer and merchant both receive a confirmation of the payment.pl/en/ . mPay will confirm the message that the transaction is in progress. and if the end user agrees. expiry date and CVC2 security code) and connect it to their MobileAxept account. An IVR system will mention the transaction.mpay. 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.com/eng – Norway Short description mobileAxept is a technological platform that allows user to pay with their credit cards using your mobile phone. At the point of sale of participating merchants. he enters his PIN. In a separate move.Poland Short description Mobile wallet application that can be accessed via USSDmessages. Polish bank Citi Handlowy.95 . mobile operator Polkomtel (Plus) have teamed with mobile payments company mPay to launch a mobile payment service which allows users to . Users can register their credit card (number. The user can fund his wallet via a bank transfer (no fees charged).mobileaxept. Currently users can only pay by MobileAxept in some taxis participating in a trial. end users can pay via their MPay wallet dialing *145*Merchant_ID#.

the service is available to passengers of the public municipal transport in Warsaw. Mobile ticketing USSD M – Payment 4 digit PIN None for the end user.sibs. the service enables Plus customers to make mobile payments for ZTM time-limited tickets directly from their Citi Handlowy bank account. In order to buy a ticket. . Also required are phones that support WAP. Dubbed 'Pay With Your Mobile’.96 pay for Warsaw transport authority (ZTM) tickets. Users then receive an SMS with a link to WAP Payments TeleMultibanco and confirm the transaction using a TeleMultibanco short code. 40-minute. Users do not need to install applications and the service works with all mobile phone models. 60-minute or 90minute time-limited tickets. which is already used at ATMs for certain mobile transactions. for the merchant “A commission for accepting mPay payments is very low (just a few percent) for every transaction.Mobile payments 2010 . 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. rather than bank account data. subscribers dial ‘145’. It is individually negotiated and fixed by contract.” According to mPay MNO: Polkomtel (Plus) Partners Additional information MB Phone www. Customers also receive confirmations of successful transactions via SMS. Initially. Type of service Type of technology Domain Secured through Cost for usage Mobile POS. customers need to register for the TeleMultibanco service. enter a code specific to the ticket type and then press #. Users can purchase 20-minute.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 use the service.

MasterCard. Venyon (Finland) and Toro (Taiwan). Additional information . 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.ingbank. TMN.Mobile payment services and pilots as well as adequate pricing plans. On top of the mobile payments service. 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.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 Mobile POS NFC M-Payment Embedded Free during trial Financial: ING. Optimus. Trial participants are to be able to pay for low value purchases of up to RON 80 (EUR 20. Technical: Collis (Netherlands).97 . Mastercard trial www. processor: SIBS ING. LogicaCMG (Netherlands).66) by tapping their phones against contactless terminals installed in 30 to 40 locations.

Good. money transfer: EUR 0. a current account and a Visa Electron debit card Using the debit card.ro/en – Romania Short description BCR bank and Good.bee The company expects some 1. according to the managing director of good.Mobile payments 2010 . In order to use these services.98 Potential This NFC pilot suffers from the same drawbacks as similar initiatives: the lack of NFC-enabled phones. Even if these phones were to become available on a wide scale.35 – 0. balance check: EUR 0.56. withdraw money from an ATM and check money available in the account.goodbee. the subscribers must have an account at BCR. without the need for any application or internet access. Customers can view information about their BCR accounts.bee Romania Sorin Bulai. customers have to call a Good. The payment infrastructure it is to compete with is not so efficient. transfer money to another good. The initial Partners Additional information .bee client’s BCR account using a mobile phone number. Type of service Type of technology Domain Secured through Cost for usage Mobile POS SMS M – Payment PIN Starter kit: RON 26 (EUR 6). transfer money to any bank account in Romania as well manage their bank accounts (change PIN or block card). Romania is likely not to be in the first wave op adoptors.21 Financial: BCR and Visa. Technology: Good. In order to use the service.14 – EUR 0. so if ING succeeds in setting up an efficient payment infrastructure.Bee access number. it might stand a slim chance.3 million banking transactions in 2009 and targets 100. Good.bee Mobile Transactions can be used from any type of mobile phone.bee www.bee Mobile Transactions offer users access to mobile transactions.000 customers in 2009. users can make purchases in shops displaying the Visa logo. top up their or other persons’ mobile phone prepaid accounts.

public transport ticketing. USSD M. M-Delivery A personal Mobipay number.mobipay. 8 cents per transaction MNO: Orange. because of the plethora of options it offers consumers and the sheer number of MNOs and financial institutions cooperating.com – Spain Short description Mobipay is a system that activates existing payment means (normal or virtual credit. Mobipay www. P2P payments are not yet possible. Vodafone.g. Mobile POS SMS. Mobipay can e. Telefonica. Potential Mobipay is perhaps Europe’s most promising mobile payment method. Cost for usage Partners Additional information . Mobipay’s offering is very complete includes services in payment contexts where it really fulfills a need.bee reached over EUR 1. 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. pay for a taxi. the telephone number associated to Mobipay. top up a prepaid card. a PIN number of the telephone associated to Mobipay.5 million. Users can choose to link their Visa or MasterCard debit or credit card to their Mobipay account and pay from their debit/credit card.Payment. authorizing payments (pay an invoice) and send money to another person.99 . M-Order. Mobile remittance.Mobile payment services and pilots investment made by Good. Banks: 9 Spanish financial institutions. be used for purchases on the internet. or – for smaller purchases (< EUR 6) – can choose to have the amount deducted from their airtime credit or charged to their phone bill. debit or pre-paid cards) and that allows to carry out a variety of transactions transforming the mobile phone. Type of service Type of technology Domain Secured through Mobile ticketing. Mobile parking.

Upon choosing a card.com/home_eng. The limit for each transaction has been set at MXN 6 million (EUR 320). According to Telcel’s director of value added services Marcos Quatorze. Banamex has 12 million customers in Mexico. Using the Virtual Mobile Wallet application which is stored on the mobile phone’s SIM.shtml .es/ingles/index. make credit card payments and pay phone and electricity bills via SMS. Telcel subscribers can request account information. users need to wave their NFC-based handsets over NFC terminals to complete a payment process. 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. while Telcel’s subscriber base exceeds 56 million. a figure expected to increase to 9 percent by 2012.sermepa. users are able to select the bank card they wish to use to make payments.telefonica.htm .Mobile payments 2010 . By linking the phone number to their Banamex credit card account. Through applications build in the SIM trial participants are able to . Bank: Banamex At present. NFC Telefónica www.Spain Short description To use the mobile banking service.100 Banamex SMS Banking www. Telcel users are required to change their SIM card with a special card with security settings available at Banamex branches.9 percent of its overall mobile user base in Latin America will use mobile banking services by 2010. Telcel’s parent company America Movil forecasts that almost 2.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.

Orange. 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. M – Payment PIN Non MNO: Telefónica. such as emission. over-the-air. Vodafone. The service is available for users of the Orange.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. Vodafone and Telefónica networks. Technology: Sermepa Presto Park&Go www. The service as such is free of charge. activation. The amount due is then either deducted from the pre-paid credit or added up to the monthly phone bill. 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.Mobile payment services and pilots manage the life cycle of various financial cards.101 . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile parking SMS M – Order. Without preregistration.prestoparking. Technology: PrestoParking . use as well as cancelation.

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

Mobile payments 2010 - 104

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

or deducted from the prepaid credit. 3 and O2. Payforit will support micropayments (generally under GBP 10) for services purchased on mobile portals. 3 and O2 launched a payment system that allows subscribers to use the mobile phones to pay for low value purchases. view a mini statement detailing the last six transactions and add credit to up to five pay as you go mobile phones.106 Virgin Mobile) Additional information Monilink is UK's mobile banking network. From May 2007 Payforit has been extended to support web transactions also.com – United Kingdom Short description Orange. Vodafone. Partners Additional information Mobile operators: Orange. browsing costs are charged in accordance with the mobile operator data tariff. No additional charges for the payment as such.Delivery .Mobile payments 2010 . . T-Mobile. Vodafone. as well as the price of the service the customer orders. opening up new revenue streams for many merchants. Initially. With Monilink. the Payforit scheme has been developed by the operators to promote a trustworthy and consistent standard for paying by mobile. Payforit www. providing a quick and simple billing option in the UK. M. First announced in March 2006. Payforit claims to provide access to over 52 million mobile phone users in the United Kingdom alone. customers can see their account balance in real time. M-Payment None For downloads. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP / Internet M-Order. T-Mobile. so that consumers can buy with confidence when they are making one-off payments or setting up subscription services via their phone.payforituk. Any purchases made will be charged directly to the monthly phone bill. providing banking customers with access to their financial information directly from their mobile handsets.

RingGo registered 1.but not all .000 transactions in Oxford alone. Cobalt will store some . The next time the customer uses the phone RingGo asks for some of the card information.30 on top of the parking fee. Mastercard. limiting its usefulness to low value. of which Oxford is the most important. Mobile ticketing Ringo uses voice calls for the ticketing service M-Payment When the customer first uses RingGo. RingGo registered 7.of the credit card details in a secure data vault.500 transactions/month in Oxford. The costs to merchants are very high. Although the concept is good and user friendly. Switch.107 . The service is offered in 20+ localities. The system also notifies users when the parking time is due to expire.000 transactions per month in the most important locality is not that impressive. Type of service Type of technology Domain Secured through Cost for usage Partners Potential . high margin products. RingGo seems to have trouble convincing parking authorities to enable people to actually use the service. GBP 0. 7. A year ago. Cooperation between MNOs adds to trustworthiness.20 – GBP 0.Mobile payment services and pilots Potential For its niche (low value payments) this solution is not unique but very successful.co. RingGo mobile www.ringgo.uk – United Kingdom Short description Business process services provider Cobalt introduces RingGo. by means of a text message. VISA. Delta and Maestro Technology: Cobalt Telephone Technology Additional information In April 2009. The growth in transaction numbers is: it shows a rapidly growing awareness. 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.

Mobile payments 2010 .United Kingdom Short description MoBank is a mobile banking service. .co. Mobile Loyalty. 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. which allows users to pay for purchases. MasterCard. Mobile Coupons. like for Arriva and YourRail M-Delivery None Free MoBank www. Visa or Visa Debit) to the MoBank account. check balances. Type of service Type of technology Domain Secured through Cost for usage Mobile POS. 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.trinitymobile.co.108 Trinity Mobile www. 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.50 per transaction. The user can register one debit or credit card (Maestro. Mobile ticketing. SMS To Email.mobank. plus the MNO charges for data traffic while performing a transaction. Bulk Text.uk/template2.uk/mobank/ .

The method is especially popular among merchants of and mobile online content. The payment either gets billed to a consumer’s monthly mobile phone bill or is deducted from the consumer’s pre-pay account.com/ . Atlas Interactive MO-Billing (MO = mobile originated) defines a billing process in which the end. but typically around 25% of the transacted amount. In October 2008. Atlas Interactive launched its service in Argentina. Venezuela. like downloading a logo or ringtone.Mobile payment services and pilots Partners Additional information Chance of success: only one phone.109 . Mobile POS SMS M-Payment None No charge to the consumer. In this message flow the end. He will then be billed by the end of the month on his mobile operator's invoice for every SMS sent to the shortcode.atlastelecommobile. Potential Premium SMS is the world’s most used form of mobile payment. The amount billed is invoiced by the mobile network operator by the end of the month. 0 chance Atlas Interactive SMS Billing www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information .user. Columbia.user types a SMS in his mobile phone and sends it to a certain short code.Europe. a few (big) banks. merchant pays an unknown fee to M(v)NO. Latin America Short description With premium SMS.user will be billed for every SMS he receives on his mobile after initiating the billing process with a free SMS MO. the consumer pays a pre-agreed rate for a service. Mexico and Ecuador. Peru. 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. MT-Billing (MT = mobile terminated) defines the reverse process of billing the end.

com – Canada Short description Everyman customers can buy mobi-tickets online at everymancinemaclub. Type of service Type of technology Domain Secured through Mobile remittance SMS M-Payment PIN .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. Mobi-tickets can also double as vouchers or coupons that enable customers to purchase for food and drinks. The service is specifically aimed at P2P payments. screen and seating.com.everymancinema. Customers have to present their mobitickets at the cinema where it is scanned by staff to allow entry to the film. as long as the sender and recipient have a Canadian mobile phone number. Users can use it to send and receive money by mobile phone or via the internet and there are no minimum balances required.Mobile payments 2010 .com/ .2 North America Everyman Cinema Club mobile ticketing www. 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. Mobi-tickets are SMS text messages that contain a unique barcode and information about the film time.110 7. Users can send everyone (also non-subscribers) money via SMS.

customers are able to see current balance information. Potential Transferring money electronically P2P costs money in Canada in contrast to some European countries.Mobile payment services and pilots Cost for usage Partners Additional information For the time of the pilot. 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.111 . In order to retrieve money. The costs of this service will therefore probably not be so much of an obstacle. Type of service Type of technology Domain Secured through Cost for usage Opening an account and receiving funds are fee of charge.5% of the total transaction amount. . The service is convenient.50 or if linked to a credit card 3. They have to download a Java-based application to their cell phone in order to transfer money. Zoompass Canada Short description Zoompass is a Canadian mobile P2P remittance service. Consumers open a Zoompass account and link it to their credit card or bank account. EnStream. Paybox Service highly similar to Rabo SMS betalen. which could discourage consumers. Money can be sent to all Canadian mobile phones. the recipient has to subscribe to the service. Users can keep track of their spendings online. Sending costs CAD 0. no fees are incurred to the consumers. but requires a separate wallet to be set up. which is a joint venture between MNOs Telus.

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.000 members. .Mobile payments 2010 . New bill payees must be set up in the online banking environment. AFCU mobile banking is only available for carriers Alltel. AT&T and Verizon Wireless. Activation of the service can only be initiated in the secure mobile banking environment. Logging into mobile banking requires a six-digit PIN. Logging into mobile banking requires a six-digit PIN. Activation of the service can only be initiated in the secure mobile banking environment.112 They have also access to their transaction history. 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. customers are able to see current balance information. 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.

First Bank. www. Only available for carriers alltel. Region’s Finance and SunTrust Banks are exactly similar. 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. Region’s Finance. SunTrust Banks. Activation of the service can only be initiated in the secure .Mobile_Banking . The service of BankCorp South. First Bank.bancorpsouthonline. Wachovia offers two ways to access accounts from a mobile device: through a mobile application or through an Internet enabled browser.United States Short description Wachovia Mobile provides a safe and secure way for Online Banking customers to access eligible Wachovia accounts for free. at&t and Verizon wireless Activation of the service can only be initiated in the secure mobile banking environment.com/home/personal. BankCorp South.checking. The service was announced in October 2007 and has been operational since April 2008.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.113 .

Customers will be charged mobile access rates. The micro site features information on tools that allow its customers to control and manage their personal finances online. customers can use a mobile phone or smart phone to access balance information. Without such an account. via mobile handset or smart phone. transfer funds and find nearby ATMs or banking centres. The service is only available for carriers Alltel.bankofstockton. Type of service Mobile remittance . Mobile Banking service is free. Customers have to enrol to this service via their mobile banking account.bankofamerica.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. The system is based on text messaging and users can check their balances.Mobile payments 2010 . make transfers between own accounts and transfers between accounts of the same bank. Mobile remittance WAP/internet M-Banking Personal information is protected by advanced encryption technology to prevent unauthorized access.com/Main. Cellular South and Verizon Wireless. AT&T. Bank of Stockton www.cfm?template=mobile_banking – United States Short description Bank of America has launched the 'Bank the Way you Live' online banking micro site. Bank of America 'Bank the Way you Live' www. pay bills. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information With Mobile Banking from Bank of America. enrolment is not possible.com/onlinebanking/index.114 mobile banking environment.

United States Short description Boku is a payment method for online purchases. to which the customer must reply by texting “Y” (for “yes”).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. Partners Additional information . operating system or wireless transmission standard. AT&T. Cellular One. reaching a potential market of 1. the system sends an SMS asking for confirmation. T-Mobile.com . Mobile payments SMS. No registration is required. 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. 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. Consumers pay the price of a SMS. Boost.115 . The service is said to work regardless of carrier.6 billion customers. US Cellular. The transaction is thus completed and the charge will be included in the monthly bill. At the merchant’s website. Nextel. Sprint. Once the purchase is made. Boku www. manufacturer. internet Mobile payments Type of service Type of technology Domain Secured through Cost for usage Businesses pay 30%-40% of the transaction value. Boku has closed agreements with 170 mobile carriers in 50 countries. Verizon and Virgin Mobile. Boku acquired competitors MobilCash and Paymo.

A fraudster could enter a mobile phone number and then using a free online SMS spoofing service. Mobile operators: At7T. Citibank mobile banking www. or connect to Citi’s customer service centres.com/internetbanking/mobile.United States Short description FirstBank's Mobile Banking service: view account balances and transfer funds. 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. Sprint and Verizon The service is developed in conjunction with mFoundry. pay bills.116 Potential Boku seems susceptible to fraud. spoof the confirmation SMS to Boku. Mobile remittance WAP / Internet M-Banking PIN The service is for free although customers have to pay data download charges from the mobile operators.citibank. search for City branches and automated teller machine locations.efirstbank.United States Short description Citi Mobile customers can review balances and transactions. transfers funds among accounts.html .com/citimobile/ . Mobile remittance WAP/internet M-Banking Type of service Type of technology Domain . Cinhular Wireless. this could be a global fraud scheme and seriously harm the service. Type of service Type of technology Domain Secured through Cost for usage Partners FirstBank's Mobile Banking www.Mobile payments 2010 . and the real owner of that phone number would only detect the fraud at the end of the month when the bill comes in. Due to Boku’s global reach. Boku would not know the difference.

United States Short description Huntington Mobile Banking offers three functionalities on the mobile phone: check balance.com . Customers will need to register with their financial institution's online banking service in order to use this mobile banking service. Huntington hit eight times its monthly usage goal in July . Huntington Bank mobile Banking https://mobile.117 . transfer money between own accounts. mobile banking enrolment takes place within internet banking. including the Chocolate and enV by LG.Mobile payment services and pilots Secured through The mobile banking application is protected with two-factor authentication and encryption of offline storage.huntington. LG VX8700. This ensures that if the mobile phone is lost or stolen. SunTrust and BancorpSouth. For security purposes. Cost for usage FirstBank does not charge any fees for mobile banking. the data stored locally for the mobile banking application is unreadable. Connectivity and usage rates may apply. Firethorn also offers the m-banking service to customers of Wachovia. 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. LG VX8600. All data placed into local storage on the mobile phone is encrypted. Following its launch of mobile banking service in 30 June. 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. Mobile banking requires a 6-digit PIN to access the application. LGVX9400 and the Samsung SCH-a950. The Firethorn app is available on several phones from Verizon Wireless.

.Mobile payments 2010 . which includes ads on its home page.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. US.ibc. The bank reached its eight months target in the first four weeks after the service’s launch. customers are able to see current balance information. The service is compatible only with phones on the AT&T and Sprint networks and is provided by mobile financial services provider mFoundry. IBC Bank www. Huntington has 1 million retail banking customers. 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. After downloading the application to their phones. New bill payees must be set up in the online banking environment.com/Personal-AccountFeatures.1 billion-asset regional bank based in Columbus. Activation of the service can only be initiated in the secure mobile banking environment. Ohio.118 and is about to exceed that by 40 percent in August. on its ATMs and enclosed marketing material sent with paper statements. within its online banking section. Huntington says its mobile banking service’s success is the effect of a marketing campaign. of which 50 percent bank online. Payment of bills is possible to existing payees. The service is only available for carriers AT&T and Sprint. they can pay bills electronically and transfer funds from one IBC account to another. They have also access to their transaction history. Huntington Bank is an USD 56.

com – United states Short description Mocapay is an integrated mobile payment and marketing platform allowing: “any consumer to link.com/content/view/18559/489/ . A mobi-ticket contains a unique 2D barcode message which is scanned at the entrance. as well as information about the event.com. Mobile ticketing will become available for events taking place at three venues in US and Canada: Times Union Center in Albany (US). Tickets.119 . Mocapay is a wallet-based method.mocapay. The arenas will begin delivering event tickets using the new Tickets@Phone ticket delivery method.com.US.Mobile payment services and pilots Mobiqa Venue Ticketing http://epnn. K-Rock Center. customers of the three arenas also benefit from Tickets@Phone’s instant delivery.” Any American consumer. Mocapay users have to subscribe to Mocapay prior to being able to use the service. On top of receiving their ticket onto their phone. On POS.com. Times Union Center The service was launched in October 2008 Additional information Mocapay www. any payment account to any mobile handset to transact at any point of sale system. the user selects an account and receives a targeted . that is. Venues’ customers can now buy mobi-tickets for the events taking place at the three venues from tickets. A mobi-ticket is generated and delivered directly to the customer's mobile phone in the form of a SMS. KRock Centre in Kingston (Canada) and BOK Center in Tulsa (US). Canada Short description UK mobile technology company Mobiqa offers mobile ticketing in cooperation with US online tickets provider Tickets. BOK Center. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile ticketing SMS M-Delivery None Free of charge Mobiqa.

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. but that could keep costs low. The customer sends the secure pin and gets a Mocapay code.10 for sending money and a 2. and gives it to the cashier. while Mobile remittance SMS. Obopay www.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. Verizon Wireless is one of the mobile operators that have launched the Obopay Service. with an additional targeted promotional message. With that. and the money is deducted from his account.Mobile payments 2010 . The redemption process is a bit complicated though. The customer gets a code back. The phone is a ‘can’t leave home without’. WAP/Internet. IVR Mobile payment . After the transaction is completed. whereas gift cards are easily forgotten.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 0.5% charge for adding money from a debit or credit card. Putting gift and loyalty cards in a mobile wallet is a good idea from a consumer perspective. he gets an additional targeted promotional message.120 promotional message. the customer gets a mobile receipt.

No terminal is required. pay. inputting their identification number and unique pin number.United States Short description Payment BuyVoice lets merchants accept credit cards anywhere. merchants can process payments using any telephone at hand. 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. The merchant also receives it via email or text message (SMS). anytime . The payments platform sends payments directly to the merchants bank account. Registered merchants dial a BuyVoice toll-free number. provide customer zip code and sale amount and provide customer's credit card information. the method has been commercially available since June . Potential Payment BuyVoice www. Additional information Obopay is a service that lets consumers and businesses purchase. The natural speech application recites the payment authorisation code.121 . or Obopay. mobile Web.com. text message.Mobile payment services and pilots linking to a bank account is free of charge. widget. Obopay works on any mobile phone and any mobile operators.with the ease of voice and simplicity of any phone. Partners Most significantly.planetpayment.com/MobileCommerce/paymentbuyvoice.aspx . After a test period. 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. and transfer money through any mobile phone using Obopay's mobile application.

Potential The service seems quite far-fetched. the transaction is validated. the service is more expensive than competing services like Obopay. PayPal Mobile www.paypalmobile. Ordering is also possible: when a consumer sees an advertisement with a PayPal Mobile logo.Mobile payments 2010 . the consumer is called back via an automatic voice response system.4% plus GBP 0.4% . After every transaction initiation. Potential PayPal Mobile offers the online PayPal proposition to the mobile channel. M-Order PIN code Private: none Business: 1. After inserting the PIN. the item is automatically sent to his address.com . On the other hand. .United States.20. Payment procedure is complicated and far away from any existing payment experience. Sprint Nextel PayPal Mobile is available for person to person payments as well as POS-payments. downloadable application M-Payment. PayPal already has a potential customer base of 150 million users who already have a PayPal account.3. After confirmation via PIN. which asks for the PIN-code.122 2008. he can send a text message to a number provided in the advertorial. For person to person payments. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS. 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. Worldwide Short description The mobile version of the well-known PayPal payment method. Automatic Voice Response. for receiving payments Partners Additional information PayPal. 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 payment services and pilots P2P Cash www.p2pcash.synovus.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.S. Synovus www.com – United States Short description P2P Cash guarantees transfer of cash to any cellphone worldwide using a Secure Open Standard (SOS). register cell phone and PIN # with P2PCash STEP 2: SEND Tel # of Recipient. Type of service Type of technology Mobile remittance WAP/Internet . Synovus will offer the mobile banking service to a subset of its customer base with a broader rollout planned for later in the year.123 .cfm?catid=1&subject=22 – United States Short description Synovus customers will have the ability to check account balances. transfer funds and view and pay bills from one seamless platform via cell phones or other mobile devices. 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.com/index.. Initially. Dollar amount ($100.

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..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.com/mobile/ . Wells Fargo Mobile www.00.wachovia. Wachovia Mobile www.10_476_12583. Activation of the service can only be initiated in the secure mobile banking environment. make one-time transfers between eligible accounts.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 .com/personal/page/0. make one-time bill payments. 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.wellsfargo.Mobile payments 2010 . 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. viewing eBills.

The text message service is only used for alerts and balance and history enquiries. as with online banking Wireless provider fee – no fee for service as such None Testing the service started in April 2007. On top of mobile remittances. m-Via will only be sold via wireless retailers in the US starting from January. users will also be able to top-up their prepaid accounts as well as pay their bills. South America and the Phillipines using a concierge-type service. The remittance service is only available using the web browser.Mobile payment services and pilots messaging (SMS) from your mobile phone or other handheld device. Mobile remittance SMS Type of service Type of technology . You select which of your accounts you’d like to access from your mobile phone.m-via. The Wells Fargo Mobile service provides access to any of your eligible Wells Fargo personal or small business deposit or credit accounts.125 .html – United States Short description m-Via allows users to make international money transfers via any mobile phone from the US to Mexico. Wells Fargo was the first bank to offer online banking accounts in 1995. 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. Activation of the service can only be initiated in the secure mobile banking environment. m-Via www. You can check account balances and review your recent account activity using the mobile browser or text messaging functions.com/files/english/main. You can also transfer funds using the browser function — all from your mobile phone or device.

Users may also transfer funds from a personal deposit account to a Commerce Bank personal loan or credit card to make a payment. SizzleMoneyTM employs an SMS-based mobile technology that works on any cell phone and on most cellular networks.com – United States Short description SizzleMoney is a mobile stored value product that enables mobile (cellular telephone) money access. clients can transfer funds from a personal line of credit to a personal deposit account. The . savings and money market Commerce Bank accounts. payments and sharing.com/personal/online-services/mobile-banking/ . view recent transaction activity as well as transfer funds between personal checking.Mobile payments 2010 .United States Short description The service enables its current online banking users to use webenabled handsets to view account balances.sizzlemoney.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. Moreover. 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.commercebank.

49. . To make a purchase from an online merchant. Through merchants using Zong. virtual world goods.49. consumers can pay with their mobiles for items such as games. Users then receive an SMS which contains a 4-digit one-timepassword (OTP).pdf Partners Additional information Technology: Denarii Payments Zong http://www.com/zong – United States Short description Zong is a mobile payment method especially designed to pay online. Monthly fee of USD 0.99.Mobile payment services and pilots product package includes a pin-based debit card for use at ATM’s and at retail establishments.00. and applications for social networks or mobile devices. avatars.com/termscond/fees. 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. All purchases are added to the user’s mobile phone bill or deducted from the pre-paid credit. SizzleMoney provides you with full mobile access to money and payment services. P2P payment USD 0.49 for both For a complete list: http://sizzlemoney. balance inquiry USD 0.127 . users click on the logo and enter their phone number. The user enters the OTP on the website and confirms the transaction. Mobile Banking SMS M – Payment PIN A plethora of fees applies. ATM Withdrawal USD 1.99. Mobile Remittance. overdraft fee USD 10. The phone is used as the authorization method. and the amount spent is charged to the phone bill.zong. making deposit USD 0.

for merchants: carriers take 25-45% of the transaction as fee. This will provide retailers with straight-through processing and campaign tracking. for retailers not dislosed .Mobile payments 2010 . Retailers can use the Eagle Eye Mobile Interactive (Mi) Voucher Redemption System to identify and transact the vouchers.on-investment calculations. allowing them to create return. More people leave the sales funnel prematurely because of the difficulty of the payment method. 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. Type of service Type of technology Domain Secured through Cost for usage Mobile ticketing NFC M – Delivery None None for consumers.128 Type of service Type of technology Domain Secured through Cost for usage Mobile POS SMS M – Payment 4 digit PIN None for consumers. Eagle Eye Vouchering United States Short description The Eagle Eye Vouchering service will enable retailers to issue mobile vouchers to customers (promotional. gift. and loyalty) either via standard SMS text messages or directly to NFC-enabled mobile phones. Zong takes 5-10% of the transaction as a fee. On top of that. Making this easy increases the share of people in the sales funnel that actually buys and pays for the product. 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.

restrictions.com/index.azuremedia. 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.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 is an application that uses the large Blackberry display and trackball navigation. replenishment amounts and reimbursements.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. Zala is designed to help corporate finance administrators to adjust ‘the controls’ on a Zala account including spending limits.chase.Mobile payment services and pilots Partners Additional information ViVOtech and Eagle Eye Solutions Chase Mobile www. 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 www.

It is a secure international.130 Domain Secured through Cost for usage Partners Additional information M-Payment Technology: mFoundry Zala positions itself as a turn-key modular. Clients can also use Eficash with phones with integrated cameras to interpret 2D codes and expedite payments. Mobile Remittance SMS. mobile financial services platform. Mobile Banking. 2D M – Payment. credit card and bank accounts to their phone number.net – United States. During transactions. Users have to top up their Eficash accounts before making transactions and have access to their funds through the web or mobile phone. M-Delivery PIN Depends on operator Technology: Efici . 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. mobile money transfer service that can be used on a mobile phone and on the web. Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS.Mobile payments 2010 . Eficash www.efici. the authentication of the user takes place via mobile phone number or user name and password. 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. Latin America Short description Eficash is a mobile based e-wallet service for banks and mobile operators in the US and Latin America. Users are also sent a confirmation message after each transaction via email or SMS based on user preferences.

M-Payment PIN Receiving alerts: ARS: 0. make transfers between own accounts. The system is based on text messaging and users can check their balances. consumers have to subscribe to the service by attaching their mobile phone to their online bank account. Banco Francès.e-galicia.131 . Customers have to enrol to this service via their mobile banking account. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Banking. offers it’s customers the possibility to do online banking business via their mobile phone. . A link to an application will be sent to the registered phone.Mobile payment services and pilots information 7.3 Latin America Banco Francès Mobile Banking www.03). monitor the progress of cheque processing. enrolment is not possible.jsp Argentina Short description Banco Francs provides its online banking customers with an additional channel to do their banking business: the mobile phone.Argentina Short description Banco Galicia. both excluding taxes.14 (EUR 0. This must be done in the customers’ online banking environment (after logging in).bancofrances. pay bills and transfers between accounts of Argentine banks.com/tlal/jsp/ar/esp/individu/servicios/bancamovil/index.com/portal/site/eGalicia/menuitem.07).ac8b11d3a58b347fbdcfd986122011ca . an Argentine e-bank. Without such an account. First. for making transfers ARS 0. Movistar Argentina The service was launched in February 2007 Partners Additional information Banco Galicia Mobile Banking www.30 (EUR 0.

Mobile payments 2010 . For Movistar customers. Partners Additional information Banca Galicia. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance Internet M-Banking.132 along with an 8-digit password.ar/individuos/canales_mobilebanking_ppal_1.35 (EUR 0. customers can access mobile banking via an 8 digit password on their mobile phone application. Movistar. extra service to online banking customers Banca Galicia.04). customers can make payments. Mobile remittance SMS M-Banking. M-Payment Username/password (8 digits) Depends on the mobile network operator. For mobile banking.com. money transfers and check the balance of their account(s).santanderrio.15 (EUR 0. one needs an online banking account at Santander Río bank and a cellphone capable of sending and receiving text messages.09) excluding taxes. receiving SMS is free. Personal The service was launched in 2006 Type of service Type of technology Domain Secured through Cost for usage . both incoming and outgoing Río SMS cost ARP 0. By sending a text message. For Personal customers. After downloading the link.Argentina Short description The SMS banking service permits customers to manage their bank account via their mobile phone. M-Payment Username/password (8 digits) None.jsp . sending an SMS costs ARP 0. America Movil The service was launched in 2006 Banco Río www.

133 .novaoi. 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). USSD and IP/XML for data applications. Mobile operator Oi. Additional information Oi Paggo www. There is no SMS cost and the short messages sent for the transactions do not consume pre-paid cell credits. WAP.br – Brazil Short description Oi Paggo is a credit system that allows clients to shop through their cell phones via SMS.br – Brasil Short description M-Cash enables clients to purchase products in retail stores with the mobile phone or through the Internet. BrasPag Type of service Type of technology Domain Secured through Cost for usage Partners . with no additional cost and is compatible with a wide range of standards including GSM.99 (EUR 1.com. Currently. Client does not pay annual fee but the client does pay BRL 2.00) on the months he/she utilises the service. processor. approximately 10. Mobile POS SMS M-Payment A personal password is used to authorise the transaction. In November 2006.com. HSBC bank launched in Brazil a service called M-Cash. Mobile remittance.000 HSBC account holders use the service but M-Cash management expects it to account for 3% of all electronic transactions by 2009. The technology offers automatic debit from the client's current account. CDMA and TDMA for mobile telecommunications and SMS.Mobile payment services and pilots M-Cash http://mcash.

The fact that more than 40.samba38. creating a perfectly feasible market for the service.000 merchants also accept this means of payment.000 to 7. customers can apply for the Samba38 debit or credit card Private Label Samba38 (mobile phone and plastic).com . If the application is approved. Mobile remittance is a service especially used by unbanked people.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 company that operates the payment system Additional information Oi Paggo was launched in February 2006 by Oi.Mobile payments 2010 . In order to gain access to the mobile payment service. Samba 38 www. The service will be used by wireless operators in Brazil covering over 60 percent of the mobile payments market.000 customers each day.000 merchants. The service was developed by Brazilian company Alimutu Technologies Management . Potential Although the monthly fee seems high. in association with Paggo. In April this year. is almost unprecedented. there is a definite need for the service in Brazil. Many of Brazil’s 200 million inhabitants are unbanked. Type of service Type of technology Mobile POS SMS . Oi Paggo had 1 million customers using the service at some 40. a small technology company. The service offers prizes to frequent users. Point of sales that accept Samba38 payments can use their Samba38 credits to pay other bills along the purchase/distribution chain. This service is made possible through business agreements with Samba38's financial partners. the customer receives a small credit directly available in Samba38 credits which can be used via a mobile telephone to make payments. a mobile operator in Brazil.134 Paggo. The service signs up about 6.

Mobile POS NFC M-Payment Potential . as well as mobile alerts and coupons.135 . The pilot is the first Visa payWave trial in Latin America and the Caribbean and the company plans to launch future pilots. Industrial Bank. including mobile account management. With widespread adoption of NFC-enabled phones still years away the future of NFC-based mobile payments in Guatemala does not look too bright. CTBC. Telemig. MNOs: Claro. The 6-month pilot was developed in partnership with Compania de Procesamiento de Medios de Pago (Visanet Guatemala). 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. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information No charge to the consumer. The pilot was announced in October 2008.Mobile payment services and pilots Domain Secured through Cost for usage Partners M – Payment Not disclosed (website offline) Not disclosed (website offline) Technology: Alimutu. to provide value-added functions. 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. Sercomtel. Oi. Visanet The pilot is only available in selected fast-food restaurants and cinamas. merchant pays an unknown fee Uno Bank. Industrial Bank and Uno Bank and is expected to include around 200 Visa cardholders.

subscribers can pay bills. .Mobile payments 2010 . Subscribers need to download an application onto their mobile telephone. a division of Megasoft. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Movistar. section of the site offline. Type of service Type of technology Domain Secured through Cost for usage Mobile banking SMS M-Payment PIN Not disclosed. Visanet then sends a SMS to the buyer's and the seller's mobile phones. users can pay by calling the *98 short number and typing in the unique code and amount of the purchase. Once registered. Visanet Mobile payments Call Mobile POS Diemo www.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. to confirm the purchase has been charged to the Visa card. Diemo is short for Dinero en Movemiento (Money on the move). With the application.mann-india. to launch mobile banking with GSM network provider Digitel.com/english/index.diemo.Venezuela Short description Venezuelan start-up company Diemo has teamed with provider of service to MVNOs XIUS-bcgi. make money transfers and withdrawals using their Diemo wallet.html .

4 Middle East and Asia M-Paisa Afghanistan Short description Vodafone and Afghan mobile operator Roshan have launched a mobile payment system. Most of its citizens are unbanked. Consumer person-to-person transactions will also be available. This service really fulfils a market need. with an additional range of business to business. however.Mobile payment services and pilots Partners Additional information XIUS-bcgi. 7. USD 15 million contract to provide mobile banking and related services in South America and elsewhere. Type of service Type of technology Mobile remittance Voice. 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 . Digitel The service was launched in August 2008 Diemo has signed with XIUS-bcgi for a three-year. Roshan and Vodafone are trailing interactive voice recognition services which. is built on Vodafone's M-Pesa service in Kenya. Potential The mobile banking service is completely new service on the market in Venezuela. At launch the Afghan service will. XIUS-bcgi is to provide security software for the service. enabling those MFI clients and employees who have received their money via M-Paisa. have a significantly different focus from the Kenyan version. client software for each mobile phone and network support. Initially M-Paisa will act as a vehicle for microfinance institutions' (MFI) loan disbursements and repayments. when launched later in the year.137 . but mobile phone penetration is about 75%. to use the service. M-Paisa.

MasterCard The initiative was announced in February 2007 Filipino migrant workers in Bahrain typically do not have a bank account in Bahrain. 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. Although the use of the mobile phone for financial services becomes increasingly popular in third world. MTC Vodafone. Through the Smart Services Hub. A bank transfer to send money home is therefore out of the question. clearing and settlement partner. the M-Paisa service has a very narrow scope. Filipino migrants and contract workers can remit funds back to the Philippines using their mobile phones. Potential SMART MTC Bahrain Short description Bahra and Smart work in partnership with MTC Vodafone Bahrain and a leading bank in the Middle East. as for the most part. Also the illiteracy rate in Afghanistan can constitute a problem. As part of the GSMA program. Smart plans to launch a pilot project with MasterCard as an authorisation.Mobile payments 2010 . they are paid out in cash. 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. Mobile money transfer therefore is a good alternative. Smart also sees the need for a global hub that will be interoperable with the Smart Services Hub.

customer notifications.139 .wingmoney. CityCell and TeleTalk. deposit and withdraw money between each other via their mobile phones. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS M-Banking PIN Not disclosed SSL Wireless. The service is an additional channel to the yet existing banking channel. 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. including Grameenphone. The possibilities are: Account balance enquiry. order for money transfer from customer’s one account to another within the bank. it just offers services via an additional channel. Additional information Potential Wing Money www. Banglalink.com/en/company-profile . The Cambodian initiative was launched by ANZ Banking group and is . pay utility bills by customer’s mobile phone. CityCell and TeleTalk. Banglalink. but the Bangla Deshi method is not for free – a major inhibitor. Just like American mobile banking methods. a private banking and financial institution in Bangladesh. have signed an agreement to provide mobile banking services in Bangladesh for all the major telecommunication services providers. mini statement requests.Mobile payment services and pilots access their accounts through SMS. Aktel. Bangladeshi Mobile services provider SSL Wireless and Islami Bank Bangladesh. The service was launched in August 2008. Warid Telecom. Aktel. Islami Bank. Grameenphone. Warid Telecom.Cambodia Short description WING is a mobile phone enabled payment service that allows customers and businesses to transfer.

Fujian Rural Credit Union and Hunan Rural Credit Union. EasiRemit. instead of the usual three to five days’ waiting time that conventional Additional information .com – China and Singapore Short description OCBC Bank and China Unionpay collaboration on remittance. 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. The beneficiary also enjoys the convenience of having the money credited immediately to his bank account in China. but nevertheless have important financial service needs. 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. EasiRemit will be launched with four CUP member banks namely Bank of Shanghai. WING is targeting those Cambodian customers who are generally un-banked.chinaunionpay. Mobile banking SMS M – Payment 4 – digit PIN EasiRemit www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS.Mobile payments 2010 . 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.

Construction Bank of China. but if it is in the range of traditional methods. bridging the Singapore . The costs associated with this service are not disclosed yet. the world's biggest mobile carrier in terms of subscriber numbers (415 million customers). The different UMPay services claim to have an aggregated amount of 100 million users. These options include: micropay (charged to the telephone bill).Banking PIN Depends on technology used and financial services provider MNO: China Mobile. Financial: China Union Pay.com/englishumpay/index. prepaid mobile wallet. Mobile POS SMS.htm – China Short description UMPay offers financial institutions in China a mobile payments platform allowing for several mobile payments options. Agricultural Bank of China. M . HSBC The service ONLY works for China Mobile subscribers – over 450 million in number. including inactive accounts. NFC-based POS payments Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance. Participating banks: 19. USSD. it has a valuable competitive advantage is high reach and real time transfers.o. Additional information .Chinese remittance gap. Potential With a large Chinese community in Singapore. It is the first real time service in its kind.141 . a. NFC M – Payment.umpay. UMPay’s main mobile payment service has reached over 40 million registered users. IVR. a joint venture between an inter-bank credit card organisation China UnionPay and mobile operator China Mobile. UMPay www. The Chinese m-payment market is dominated by UMPay. WAP/Internet. Bank of Communications.: Bank of China.Mobile payment services and pilots remittance services typically require. Since it was launched in 2004.

Alipay has closed a similar deal with another Chinese carrier China Telecom. following more than a year of internal testing.com .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. WAP M-Payment User PIN Mobile POS SMS M – Payment 4 digit PIN None Alipay. The service was launched. By sending SMS commands to a specific number.142 Ali M-Pay www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information mChek www.alipay. China Mobile Type of service Type of technology Domain Secured through .mchek. In order to make m-payments via Alipay. mobile remittance SMS. users will need to link their mobile number to their Alipay accounts and configure their mobile payment service.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. Mobile POS.Mobile payments 2010 . mobile phone users will be able to make transfers and buy goods of up to CNY 200 (approximately EUR 22) per transaction.

WAP/Internet M-Banking MPIN (mobile PIN) None The banks that have currently tied up with Obopay are. Electricity and Water bill payments. Both the subscriber and the Merchant will get confirmatory SMS messages from OxiCash with .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. Development Credit Bank (DCB). and Yes Bank (YES).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. OxiCash users can also pay in remote places without GPRS. Additional information Oxicash SmsPay www. etc. Oxicash acts as a prepaid wallet. shop online for apparels.143 . Kotak Mahindra Bank (KBL). Telephones. The amount will get debited from your OxiCash wallet and credited in favour of the Merchant. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS. Tata sky and DishTV recharge coupons.oxicash.

144 transaction details and amount. Mobile POS SMS M-Payment User PIN Free for consumer.com/viewsection. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M-Banking PIN Not disclosed Airtel.statebankofindia. might very well be a bridge too far.21.691 – India Short description In the process of providing banking facilities in un-banked regions of India. Airtel and State Bank of India pilot a project in the Himalayan village of Pithoragarh. State Bank of India. Oxicash plans to distribute these services to Oxigen’s pan-India retail network of approximately 50. mobile payments in a country that has not yet gotten used to cards. In June 2008. The customer will .000 touch points.000 by 2010. 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.jsp?lang=0&id=0. Potential State Bank of India mobile banking http://www.Mobile payments 2010 . but at the POS. 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.1. which is expected to expand to 250. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance. merchant charges not disclosed Oxigen The service started in July 2008. this pilot was turned into a national roll-out.

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. Mobile Remittance SMS M – Payment Username and password Free during trial – remittances against a fee. should he/she desire to continue to avail the services from the State Bank of India.000.yesbank. not disclosed Bank: Yesbank.00 (EUR 100) within an overall calendar month limit of Rs. On top of money transfers. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. which gives Yes Bank customers the possibility to send money only between Yes Bank accounts through Obopay’s mobile payment service. (EUR 500) Pay Anyone www. the bank offers its clients a mobile payment service called 'Person to Person'. The upper ceiling per transaction limit shall be Rs.Mobile payment services and pilots have to re-register for the service following the registration process explained above. the new service enables users to book tickets and pay for mobile top-ups. 5000.00. At present. Yes Bank currently has 5. among others. The .000 customers who are using the bank’s mobile payment services throughout the country. 25. 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.in .145 .India Short description Pay Anyone is a cooperation between Yes Bank and American Obopay.

citibank. Mobile ticketing NFC M – Payment.in . The application can be downloaded by sending an SMS. To use Citi Mobile banking service.Mobile payments 2010 . transfer funds. Citi Mobile works with the customers’ 16-digit debit/credit card number and existing IPIN.146 trial started in April 2009. 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.India Short description The Citibank M-Banking India solution allows customers to view account details. pay bills and make requests.co. The service is free of charge. M-Delivery Embedded Openi Bank: Citigroup Citibank M-Banking India www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS.online. the customer needs a javaenabled mobile phone with a GPRS connection. 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 .

credit card.nttdocomo. the end user receives a call back from an automated IVR. ID card or a key to the home. 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 system can also be used to pay bills. and purchase history on the mobile phone screen.in – India. 1 bank in Sri Lanka and 1 in Nepal. Users can check their credit balance. subscribers are able to pay utility bills. the user gets a confirmation SMS which completes the purchase. The service can be used to pay online as well as to pay at 13. which is used to authorise transactions.000 (EUR 30). Everest Bank (Nepal).com – Japan Short description The Osaifu mobile phone can be used as a wallet.000 merchants on the Indian subcontinent. .co. The service is available for customers of 14 banks in India. requesting a PIN. 14 banks in India Additional information The transaction limit is IRS 2. Sri Lanka Short description Indian mobile payments provider PayMate enables its clients to send and receive money. he will receive a fourdigit PIN. Paymate plans to add P2P remittance to the service. Via PayBill’s SMS-based service. Nepal. After a successful PIN entry. Upon registration. point totals. FeliCa Mobile www. Nepal: Nepal Telecom Banks: Bank of Ceylon (Sri Lanka). pay for movie and flight tickets and make person-to-person money transfers. a consumer has to link his PayMate account to a bank account or credit card.147 . PayMate can be used with online and offline merchants. monthly utility bills.paymate.Mobile payment services and pilots PayMate India www. flight & movie tickets. pay for retail purchases. After initiating a transaction. After that.

148 and use the i-mode network to add e-money credit. Mobile Suica also works as e-money for purchases at stores. ‘Edy’ electronic money.Japan Short description 'Osaifu Keitai'. FeliCa is a contactless IC card technology developed by Sony Corporation. or pay for products and services. mobile POS NFC M-Payment SIM KDDI au's Osaifu-Keitai ‘EZ Felica’ www. and East Japan Railway's ‘Mobile Suica’ fare collection service.Mobile payments 2010 . 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.html . In addition to facilitating remote payments. 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. 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'. . There are discount bonus points and other special privileges exclusively for OsaifuKeitai-users. Mobile ticketing. download tickets.com/english/value/au/index. The Mobile Suica application can be used to pass through automatic ticket gates at train stations. The mobile phone service ‘EZ FeliCa’ uses ‘FeliCa’ non-contact IC card technology for applications such as ‘QUICPay’ mobile credit. is a service compatible with 'EZ FeliCa'.kddi. turning KDDI au mobile phones into mobile wallets. 'EZ FeliCa'.

'EZ FeliCa' is a service that can be used in a variety of situations. meaning 'New Bank'). At 'EZ FeliCa site'. In June 2008. NTT DoCoMo.5 trillion (EUR 10. KDDI telecom The aim is to reach 2. 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. and phone (IVR/operator) banking. and 3. as well as shop online with their handsets. 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. users can check out information related to 'Osaifu Keitai'. credit cards. offers a full line-up of financial services oriented to individual Partners Additional information . and conduct location-based searches for shops which provide the 'Osaifu Keitai' service.4 million in the fifth year as well as JPY 1. Users will be able to make payments to the accounts of anyone in their mobile phone’s address book. The New Bank (Shinginko in Japanese. KDDI will actively continue to expand services for 'EZ FeliCa' to meet the diverse needs of customers.7 billion) in deposits. In the future. and membership verification.149 . Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Banking.4 million account holders by the third year. credit card services and insurance offerings. The company has been accepting applications since August 2008.Mobile payment services and pilots information exceeded 10 million on November 25 2007. or as e-money. the service will include foreign currency deposits. and Softbank). internet. such as the purchase of train tickets and commuter passes. 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.

mobile banking and international remittances. The service will be available in Arabic and English directly to Viva subscribers as well as via authorised dealers.softbank. such as for transportation and commutation ticketing. capitalising on the strengths of the mobile phone. Turnkey Technologies Type of service Type of technology Domain Secured through Cost for usage Partners Additional .jp/mb/en/service/advanced/sfelica/ . electronic money shopping.150 consumers.Japan Short description S! FeliCa’ is a ‘Osaifu-Keitai’ (mobile wallet) service that lets customers use their handsets in a variety of ways. other fees not disclosed MNO: Kuwait Telecom Company. Mobile banking. membership card and point card services. money transfers. S! FeliCa http://mb. bill payments. mobile remittance SMS M – Payment Username – password Opening account is free of charge. The service is based on SMS technology. Technology: Macalla.Mobile payments 2010 . 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. credit card.

Digi Remit wallets can be topped up at authorised outlets across Malaysia or via Giro transfer from any bank account.64) for all the three countries. The fees for DiGi Remit are slightly lower than traditional remittance services and have a higher reach. The signing up takes one day. participants will be issued with a Nokia 3220 phone pre-programmed with their regular Maybankard Visa Wave card information. Remittances can be sent to anyone in the destination countries. it can also be used to wave and pay at Visa Wave merchants. but with the built-in Visa Wave function. Indonesia and the Philippines via SMS. Partners Additional information Mobile Visa Wave Payment Malaysia Short description In the pilot. Potential The service competes with traditional remittance services like bank transfers and Western Union. DiGi updates both sender and receiver via SMS on each transaction. Citibank The service was launched in October 2007 with Citibank. depending on the mode of delivery in the receiving end. With two text messages users can complete a transfer.com/my . 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.Mobile payment services and pilots information DiGi Remit www.Malaysia Short description To transfer money from Malaysia to Bangladesh.151 . . It operates as a standard mobile phone connected to the Maxis network.digi. with or without bank account. especially on the recipients side than bank transfers.

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 . PayPass combines both contact and contactless interfaces on one chip.dynamic data authentication (DDA) . merchant: credit card charge Maybank. . 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.500 outlets and 160.for all transactions. aimed at a tech-savvy nation. Singapore. such as the Asia/Pacific. PayPass allows cardholders to “tap & go” at merchant outlets around the world that are equipped with PayPass readers. Also. Visa Launched April 2006 A large-scale NFC initiative. Mobile phones in countries like Malaysia. OneSMART PayPass Malaysia Short description OneSMART MasterCard PayPass is the industry’s first internationally accepted contactless EMV payment solution. South Korea and Taiwan play a far greater role in every-day life than in Europe and North America. which amounts to 2.Mobile payments 2010 . enabling regions where EMV smart cards predominate. Mobile Visa Wave payment in Malaysia combines NFC (near field communications) with Visa Wave contactless card technologies. in Malaysia. Maxis Communications. to reap the speed and convenience benefits offered by contactless payments. This enhances adoption. Japan. building on the existing contactless platform. OneSMART PayPass provides Malaysians with a fast and convenient way to pay for their small everyday purchases.000 cards.

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.000 contactless payment touch points throughout Malaysia. The contactless chip embedded in the device also powers a number of additional functions. Type of service Type of technology Domain Mobile POS.153 . 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. Nokia. including a contactless transit application. bus terminals. Merchant charge not dislosed MasterCard.Mobile payment services and pilots The system is globally interoperable with other PayPass systems.com. Maxis offers its customers the Visa payWave –enabled Nokia 6212 classic handsets.maxis. Mobile Ticketing NFC M – Payment .my – Malaysia Short description Malaysian mobile operator Maxis. account holders can make purchases at any of the 1. PayPass subscribers from other nations can use the Malaysian system too. To access the service.800 merchant outlets that currently accept Visa payWave in Malaysia. highway toll gates and car park facilities at more than 3. Maybank and Visa have launched the Maxis FastTap NFC m-payment service. This feature enables Malaysian commuters to pay for charges while using metropolitan transit systems. Maybank Visa account holders need to download their Visa payWave credit account details to their Nokia 6212 classic handset over the Maxis wireless network. As part of the service. Once the account has been personalised on the phone. Maxis FastTap www.

Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobilink Genie www. Financial: Maybank. Commenting about the launch.Mongolia Short description XacBank.cgap.000 Mongolians (out of 2 million). Mobilink Genie ties the consumers’ credit card and bank account to their Mobilink connection. a provider of development finance in Mongolia.154 Secured through Cost for usage Partners Additional information SIM None during trial MNO: Maxis. Visa. CGAP is supporting XacBank with technical assistance and funding.mobilinkgsm.Pakistan Short description Mobilink Genie is Pakistan’s first service to offer the ability to pay bills. has partnered with global microfinance body CGAP to launch a new mobile phone banking service. but has not been established yet. XacBank expects the service to reach out to as many as 300. while on the move. Other: Nokia XacBank Mobile Banking http://technology. the consumer needs an Mobile remittance SMS M-Banking. remittances. CEO of XacBank Ganhuyag Ch. The new service will expand the availability of deposits. and cash transfers to rural locations.org/category/projects/mongolia-xacbank/ . loans.com/genie/index. M-Payment PIN not known yet CGAP and XacBank The initiative was announced in July 2008. . In order to subscribe to the service. withdrawals.Mobile payments 2010 .php . 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.

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. bill payments and inbound international remittances.00 (EUR 0.e. cashless purchasing.Philippines Short description Globe Telecom. standard GPRS rates apply. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Payment PIN Minimal charge of PHP 1.aspx?rand=192 .Mobile payment services and pilots internet/wWAP enabled mobile phone. Interestingly.02) per GCash transaction . transfers of airtime from one user to another. G-Cash www. Utility bill payments have a fee of PKR 20 (EUR 0. high-frequency remittances.155 .ph/main. cash to and from other users. G-Cash’s main functions are cash deposit and withdrawal (accompanied by ID. transfers of credit to the prepaid account (i. airtime top-up). as well as standard SMS fees. Genie PIN and bank card PIN For downloading the application.com. at Globe offices and participating retailers). Citibank Pakistan.e.g-cash.20) Partners Additional information Mobilink. without physical ID verification. KASB bank and Atlas Bank Users can subscribe through Mobilink or through one of the participating banks. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Payment Consumer number. registration for the GCash service can be activated over-the-air (OTA) i.

Mobile remittance SMS M-Payment PIN 1% of transacted amount with a cap of PHP 50. withdraw cash or top up the phone’s prepaid credit levels.000 (EUR 800) Mobiel phone company Smart and MasterCard Type of service Type of technology Domain Secured through Cost for usage Partners Additional information . Loading physical cash onto the SMART Money account can be done at SMART’s m-banking partner Banco de Oro branches. Once connected to the Western Union service. 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. 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.Mobile payments 2010 . donations and online purchases via texting. also abroad. The functionality allows a user to deposit cash. from that ‘cash’ account or other bank accounts. 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. The customer can also transfer prepaid credit or cash to another user. SMART Wireless Centres or SMART Padala outlets. 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. The service allows users to transfer cash from one Smart Money card to another. 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.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 .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. over-the-counter transactions at NCB branches and fund transfers via the bank's ATMs. internet banking. 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. 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. cash deposit machines.157 . 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. remittance centres.

coupon delivery and redemption. 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. which are loaned to the trial users for six months. kicked off October 2007. including NFC mobile payment wallet. The companies utilise technologies provided by US company ViVOtech. Over-the-Air (OTA) payment. Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS NFC M-Payment PIN Not disclosed SingTel. Network for Electronic Transfers Singapore (NETS) and United Overseas Bank (UOB) have launched an NFC mobile phone payment trial in Singapore. SingTel www.158 Partners Additional information StarHub and EZ-link This launch of one of the largest public trials of such mobile payment technology. VivoTech The service was launched in September 2008.Mobile payments 2010 .singtel.000 participants use their phones like electronic wallets. . UOB. NETS. About 20. It saw 1. each one equipped with ViVOpay 5000 NETS FlashPay contactless terminals. 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. 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.Singapore Short description Mobile operator Singapore Telecommunications (SingTel).000 ez-link machines can read these special made-inSingapore phones.com .

Visa In February. M1 Mobile Payments http://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.Singapore Short description Citibank Singapore. The authority is due to ensure the security of all sensitive financial information being transmitted wirelessly. Participants in the trial have been given NFC-based mobile phones.159 . . 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. The SingTel wall also comes equipped with an electronic coupon application that provides SingTel customers discounts and other incentives and freebies.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. Financial: Citibank Singapore. The service allows users to open a coupon on their NFC-enabled phones and flash it to a NETS FlashPay reader for automatic redemption. Singapore’s government announced plans to create an agency to regulate mobile payments services. It will also make sure mobile payments systems are compatible with similar systems which will be rolled out in future. which are embedded with a computer chip that contains their credit card details. Visa and Singaporean mobile operator MobileOne (M1) launched a three month NFC m-payments trial. which started 1 April. Three hundred Citibank Visa cardholders which are also M1's subscribers take part in the trial.

Called Bank On. Kookmin Bank and LG Telecom began providing banking services via mobile phones.Mobile payments 2010 . LG Telecom In order to use BankOn mobile service.160 BankOn www.com/eng/ . including wireless credit card transactions.South Korea Short description In 2003.ktf. wireless Internet banking. as well as pay transportation fares through their mobile phones. a financial chip should be installed in an exclusive mobile phone enabled to be installed with the chip. shopping.South Korea Short description KT Freetel offers K-merce. which enables financial transactions from the mobile phone. K-merce http://english. The Bank On service enables Kookmin Bank customers to transfer and withdraw funds. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing. mobile remittance WAP/Internet M-Payment Security card Fee: A/C transfer to other banks: 500 Won South Korea Kookmin bank. 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 .keb.co. view account balances.kr .

transportation card and membership card. The Moneta IC chip is attached to a mobile phone and has post payment transportation card functions for use with mass transit in Korea. integrated. it . credit card or e-cash by means of a mobile phone equipped with an IC chip. One single chip handles all the functions of a credit card. 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. Mobile remittance NFC M-Payment For mobile banking: a 3-tier security system using PIN numbers. Moneta provides a wide diversity of useful finance-related content and information on stock trading.Mobile payment services and pilots Moneta www. financial investment and insurance. participants will be issued with a Nokia 3220 phone pre-programmed with their regular Maybankard Visa Wave card information.com . Type of service Type of technology Domain Secured through Mobile POS. total financial service that can be conveniently used via the web or mobile phone. Moneta also offers users the individually-tailored services and advice of financial experts. but with the built-in Visa Wave function. It operates as a standard mobile phone connected to the Maxis network.161 .sktelecom. membership and cash cards. e-cash. transportation. account numbers and security card information provides extra safety. Moneta Bank is a mobile financial service that allows you to complete various financial or banking transactions as you would with a cash card. Tesco Visa Wave Trial South Korea Short description In the pilot.South Korea Short description As a wired and wireless.

and also make deposits and withdrawals.500 outlets and 160.dynamic data authentication (DDA) . ensuring that cardholder data cannot be intercepted between card and terminal. Among results to date are a 27% higher activation rate. merchant: credit card charge Tesco. Visa Wave is EMV-based and uses the strongest EMV authentication . Manners says. KTF Ubitouch Mobile Banking http://english. Mobile Visa Wave payment in Malaysia combines NFC (near field communications) with Visa Wave contactless card technologies. It is a one-chip solution enabling access to multiple banks. .com/eng/ – South Korea Short description Korean operator KTF will launch its UbiTouch mobile banking service. Initially.162 can also be used to wave and pay at Visa Wave merchants.ktf. To address security concerns. Motorola Banks have been issuing combined payment and contactless cards for several years. Additionally. the service will be available for all seventeen domestic banks. UbiTouch users will be able to check account balances.000 ATMs on which the UbiTouch mark is shown. building on the existing contactless platform.for all transactions. transactions only work when the Mobile Visa Wave phone is in close contact with a terminal. make money transfers. Samsung.000 cards. Ubitouch is connected to the user’s credit card. except Shinhan Bank. 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. LG Card is South Korea’s biggest card issuer. LG Card.Mobile payments 2010 . which amounts to 2. 9% increase in POS spending and a reduction in dormant merchants. Subscribers can withdraw money by touching their mobile phone to one of the 39. and one in four Visa cards In Korea has a transit application.

Taiwanese government. The Taiwanese government commissioned the pilot. . Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile ticketing NFC M-Order. Customers can check in and check out using NFC. M-Delivery PIN (not always needed) User: none. Type of service Type of technology Domain Secured through Cost for usage Mobile Banking Internet M – Payment PIN None charged by MNOs. It requires an application download on the mobile phone. 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.163 .Mobile payment services and pilots The system uses an ID-sensor. LG Telecom. Ubitouch is the first one-chip multi-banking system. SK Telecom. South Korean operators SK Telecom and LG Telecom also plan to adopt the same service soon. merchant: credit card charge MasterCard. Use is subject to normal charges from financial institutions. Registering account information is found into an USIM chip built into mobile phones and users secure money transfers and cash withdrawals using passwords. which includes the world’s first MasterCard PayPass chip combicard (combination of a contactless card and normal card). Kaohsiung Transport Launched in October 2005. Partners Additional information m-Ticketing Transportation Kaohsiung Taiwan Short description The mobile ticketing TaiwainMoney Card is an e-ticketing card. Download of the application is free MNOs: KTF.

Thailand Short description Through TMB M-Banking. as well as credit card or direct debit.Thailand Short description Advanced mPay offers mPAY. It allows its clients to pay for products and services using mobile wallet mCASH. At the user’s request. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance. TMB’s savings and current account holders may apply for TMB M-Banking through tmbdirect. . and games. a mobile payment system that enables the clients to pay bills.com . which require 128-bit SSL encryption and a special security system for mobile phones to ensure full encryption during usage. SMS alerts can be sent to inform the client when a money transfer is completed. online music. TMB M-Banking www. 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.164 Advanced MPay www. Mobile POS WAP/Internet and IVR M-Payment PIN Free for consumers MasterCard. TMB M-Banking users benefit from the bank's two-factor authentication systems. Bangkok Bank.th/web/CT_what_general. The application is free.tmbdirect.mpay. Other features include cross-account and cross-bank money transfers. TMB Bank's ATMs or branches nationwide. TMB M-Banking clients can pay bills for various services and products such as credit card.Mobile payments 2010 .co. electricity bills and mobile phone bills.com. buy movie tickets. Kasikorn Bank. Visa.html . Moreover. clients can view account summary that dates back as long as nine months as well as monitor their accounts.

coupons and direct marketing.com/kcyber/login. Nokia . the Visa payWave platform offers over-the-air personalisation. Industrial Bank.html .165 . merchant pays an unknown fee Uno Bank.kasikornbank. Kasikornbank. Purchases will be charged directly to the customer’s Kasikornbank Visa credit card account. On top of contactless payments. 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.000 payWave merchant locations in Thailand. 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. 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). 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. This will allow Kasikornbank customers participating in the trial to make purchases at more than 1. The Visa payWave-enabled transactions are protected with the same security layers used for all Visa transactions.

A contactless MasterCard PayPass credit card application is stored on the SIM card as a secure element. 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.Mobile payments 2010 . but the first to aim at interoperability between different banks and different mobile network operators. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment SIM Unknown. Turkcell Turkey Short description Turkcell and Garanti Bank have launched on January 16. 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.Interbank Card Center) is planning a January launch for a year-long pilot of an independent near-field communication (NFC) infrastructure. BKM will act as the Trusted Services Provider.166 information Bankararasi Kart Merkezi Turkey Short description Turkey's national card switch and clearing centre BKM (Bankalararasi Kart Merkezi . with nine banks and two of the country's three mobile operators already on board.

some 100 Turkcell and Garanti employees and customers will be provided with an NFC-enabled mobile phone.ameinfo. Consumers link their credit card to their NFC enabled .Mobile payment services and pilots Domain Secured through Cost for usage Partners M-Payment SIM Unknown. Giesecke & Devrient Additional information In the trial. pilot participants pay no fees Bank: Garanti Bank MNO: Turkcell Card: MasterCard Technology: E-Kart. The adjusted online banking website is now available via mobile internet. Dubai Bank Mobile Banking www.United Arab Emirates Short description Dubai bank mobile banking allows Dubai Bank internet banking customers to do their online banking on their mobile telephones. 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. The service is a first in the UAE. Some 3. using username/password.html .000 merchants already have a contactless card terminal and are also able to accept mobile NFC payments. The log-in procedure is similar to online banking.167 . Venyon.com/173078.

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. 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. Also. Existing I-Banking customers can use their username and password to access the mobile banking service.standardchartered.168 phone and can make payments at 250 locations at The Walk shopping promenade.html . The bill payment system enables customers to pay their Etisalat bills directly from their debit or credit cards. incorporating additional partners. The service comes on the heels of an upgrade to its I-banking application.Mobile payments 2010 . . the bank recently introduced and IVR self-service and automated bill payment system with telecommunications operator Etisalat. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information MNO: Du. transfer funds and top-up mobile phone credit. among others.ae/personal/home/en/index. The parties expect to subsequently launch it commercially.

To use the service.169 . payments are authorised using a 4digit PIN chosen by the user.com . With PayMate. Mashreq bank customers can either insert their card details on the mobile application or enter the PayMate PIN.United Arab Emirates Short description UAE-based bank Mashreq has launched a mobile payments service in the UAE with Indian mobile commerce company PayMate. 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. While making payments. software widgets will allow users to purchase movie and flight tickets. Mashreq bank clients will need to make a onetime registration to link their existing bank accounts or credit card accounts to their mobile number.Mobile payment services and pilots Mashreq Paymate Banking www. Platform: PayMate . With each payment. The service enables clients to use their mobiles to purchase products from retailers (POS or online) as well as pay their utility bills. 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.mashreqbank. the amount will be charged directly to a customer's credit card or bank account (in the case of PayMate registered users).2 certified). Moreover.

The solution features efficient coding and compressed file sizes for fast response time.boq. authorise payments.com – Australia Short description Contactless mobile payments is the first Australian mobile application of NFC. making a purchase will mean holding their mobile against a reader in a shop.170 7. Telstra.5 Australia Mobile Queensland www. M-Payment Username/password None Sandstone The service was introduced in September 2007. The mobile banking solution is from Sandstone Technology (North Sydney).telstraenterprise. NAB. view transaction history. then the payment is automatically loaded onto their Nab Visa credit card account. No personal details are stored on the customer's mobile device. Very little data is physically transmitted across the mobile network. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance WAP/Internet M-Banking.mobi to access the online banking account on the mobile phone. This technology can enable faster and .au . pay bills. Visa www. Users can transfer money. which will see Nab Visa credit card details securely loaded onto a Telstra SIM. allowing them to use iPhone or any mobile device with an SSL-capable browser.Mobile payments 2010 . but not necessary. For consumers. The use of a token is recommended.Australia Short description Bank of Queensland (BOQ) has made their online banking portal available for mobile phone users.com. Mobile phone users surf to boq. vendor of Internet and mobile banking systems as well as loan origination processing systems.

companies that provide cash for fund transfers and other physical outlets. This Australia first trial encourages participants to explore the world without a wallet or purse – potentially. The system was inaugurated in December in Yaoundé by Express Union. Mobile Money is available through a network of partners including micro-finance institutions. it could replace all plastic cards including loyalty. 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. 7.Mobile payment services and pilots easier payments which can mean less time at the checkout. The network is based on a central service which receives data from electronic payment terminals located in service partners’ outlets. Telstra in partnership with NAB and VISA have launched this proof of concept trial in Melbourne. Contactless Mobile Payments are already being used and trialed overseas as part of the GSM Association (GSMA) initiative and.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.171 . 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. ticketing and credit cards. The service allows mobile phone customers to transfer money and pay bills. . 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.

fees apply for opening an account as well as making a transaction. check their bank balance. Zenith Bank. ADB Bank MNO. pay bills. Kasapa. txtNpay works with any mobile phone and mobile operator in Ghana. MTN Partners . First Atlantic Merchant Bank. Every transaction is secured with a 5-digit PIN. but there are plans to expand abroad). The txtNpay wallet is an electronic stored value account.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. and only available upon opening an account in Ghana. Brand owner: Africaxpress Financial.Mobile payments 2010 . WAP/Internet M – Payment 5 digit PIN Next to MNO-dependent SMS and data exchange charges. Tigo. The exact fees are not disclosed. and purchase goods and services. Type of service Type of technology Domain Secured through Cost for usage Mobile Remittance SMS. buy pre-paid airtime. OneTouch.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.textnpay. Customers fund the wallet by buying txtNpay electronic cash at a partner outlet or making a transfer from their bank account.

orange. while BNP Paribas’ Ivory Coast subsidiary BICICI is in charge of issuing and guaranteeing the electronic money. costs are 200 XOF for withdrawals/transfers up to XOF 2.000.000 to 3. Type of service Type of technology Domain Secured through Cost for usage The deposit of money has no fees attached to it.ci/omoney/cashinout. Mali and Senegal are the first to follow.173 .ci/omoney – Côte d’Ivoire Short description Orange Money is a pre-paid wallet. managed on the mobile telephone. For a complete overview of fees: www.orange. To withdraw money and transfer money.24) and pay bills. customers have to open an Orange Money account at a accredited Orange agent.php Partners MNO: Orange Telecom Financial Institution: BNP Paribas (BICICI branch) Additional information Orange plans to roll out this service to other African countries. With Orange money. make person-to-person money transfers. Orange Ivory Coast handles the services’ platform and marketing.which is activated for free without requiring any minimum deposit.000 (EUR 152) from the Orange Money account. Users do not need bank accounts to subscribe to the service. Mobile banking.000 XOF for withdrawals/transfers up to XOF 100.Mobile payment services and pilots Additional information TextNpay plans on making international P2P money transfers out of Ghana available to consumers in due time. Orange Money www. Orange customers can deposit and withdraw up to XOF 100. P2P money transfers into Ghana are already available. top-up their airtime credit with up to XOF 10. In order to use the service.000 (EUR 15. Mobile remittance SMS M – Banking & M – Payment .

174 Eazzy 24/7 www.ke/ .50) Transfer from EBK account to other bank’s account: KES 150-200 (EUR 1. individuals. The target group is any of the clients with a phone who are looking for convenient banking . Via Eazzy 24/7.00) Partners Additional information Safaricom (Vodafone) Launched in September 2008. non-account holders looking for convenient access to their bank account.6 million customers who have 4.Kenya Short description Sms Banking allows customers to access limited services via the mobile phone.5 million accounts countrywide.Mobile payments 2010 . account holders. The infrastructure of this initiative is based upon the M-PESA infrastructure. Safaricom (owned by Vodafone) is partner in both the M-PESA initiative and in this Eazzy 24/7 initiative.Small business owners. Equity Bank Kenya has 2.equitybank. .co. Customers can also top up their mobile phone with the new Equi-sms banking Top up Service. 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 0.50 – 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. purchase air time.co-opbank. Safricom announced an extension of the service with UK-Kenya remittances in cooperation with Western Union. buy Safaricom prepaid airtime and manage the M-PESA account.Mobile payment services and pilots Cooperative Bank of Kenya mobile banking www. Type of service Mobile remittance . In December 2008. request for mini statements.000 customers as subscribers.co. Through M-PESA a user can deposit or withdraw money. and today counts in excess of 200.co. transfer money to another M-PESA customer or send money to a non M-PESA customer.175 .safaricom. This product allows you greater accessibility and convenience in running your account by bringing all these services at your finger tips. make utility payments and receive automatic salary alerts when cash enters their accounts. M-Banking has become very popular with customers.Kenya Short description Safricom offers an SMS-based payment and money transfer service based on SMS and pre-paid accounts. 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. Since its inception in 2004.ke/m-pesa .

72) with the size of the withdrawal varying between KES 100 and KES 35. A user can have up to KES 50.000 (EUR 504) in their M-PESA account. Sending money to an M-PESA user costs KES 30 (EUR 0. allowing Kenyans overseas to send money home quickly and much more cost effectively than most alternative means. and can only be used inside Kenya. a customer can send funds to any other phone number.000. Bank: Citigroup. It is aimed at mobile customers that do not have a bank account.01) and KES 35. Once registered.30) for a transfer between KES 100 (EUR 1. for international remittances: Western Union.76) and KES 400 (EUR 4. on any network.000 (EUR 354). Sending money to a non-M-PESA person costs between KES 75 (EUR 0. and charges are levied on a pay-as-you-go basis.Mobile payments 2010 .04) for a transfer between KES 100 and KES 35.000. download or withdraw cash at Safaricoms re-seller airtime distribution agents. Additional information . 2007 in Kenya by Vodafone's Kenyan subsidiary Safaricom. or for topping up airtime. with no minimum balance. Partners MNO: Safaricom.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. M-PESA was launched in February. Customers can also use their MPesa account balance to buy goods and services. Withdrawing cash costs between KES 25 (EUR 0. Only Safaricom subscribers can send money by M-PESA.25) and KES 170 (EUR 1. enabling person-to-person money transfer instantly over large distances. but the recipient need not be a subscriber or a bank account holder. The receiver gets a text message that can be taken to a re-seller agent and cashed in. 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.

Zain’s previous money transfer service which was in operation in several East African . Zain. the service is only available to the Safaricom and Zain subscribers. top-up their mobile phone balance and request a cheque book. The pilot project will replace Sokotele. Currently.com/muse/obj/portal. Tanzania Short description The service allows bank customers to check their bank balance. change their PIN. 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. 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 service was also lauched in Tanzania in February 2009.177 . mBanking is based on the Unstructured Supplementary Service Data (USSD) standard for transmitting information over GSM signaling channels. Tanzania and Uganda.zain. Tanzania. the bank’s customers have to physically register with the bank. pay utility bills. Bank: Standard Chartered Zain M-Wallet www.com/ke/personal-banking/electronic-banking/m-banking/en/ Kenya.Mobile payment services and pilots Standard Chartered M-Banking www. Uganda Short description Mobile operator Zain partners with international banks including Citigroup and Standard Chartered Bank to launch its Zap mbanking in Kenya. transfer funds between personal accounts and nominated accounts. enquire on FX rates.standardchartered. request bank statements. view a mini bank statement for their last 3 transactions. In order to use the service.splash – Kenya.

Customers will be able to send credit to other Zain customers across Kenya.178 countries. Standard Chartered. which is being rolled out by agent-based Saraf Mobile across North Africa. Additional information Mi-Pay Sierra Leone www. according to new regulations imposed by the Central Bank of Kenya. transfer and receive money to and from their bank accounts. Zain enables customers to use their mobile phone to pay for goods and services. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile Remittance SMS M – Payment. Technology: Oberthur Technologies. send money to friends and family.Mobile payments 2010 .000 up to 25 times in a day. M-Delivery Username – password Opening account is free of charge. 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.Sierra Leone Short description Via Mi-Pay's online and mobile international remittance service. pay electricity bills (at present only in Kenya and Tanzania). The same daily transaction limit applies to Safaricom’s MPesa money transfer service. Banks: Citigroup. Uganda and Tanzania.com . With Zap. customers in Kenya are allowed to send and receive between KES 50 and KES 35. The service precedes the anticipated announcement of an East African mobile banking deal. other fees not disclosed MNO: Zain. withdraw cash. The deals follows the launch of Mi-Pay’s mobile money transfer service in Sudan. top up airtime account or top up someone else's account as well as manage their bank accounts. Type of service Mobile remittance .mipay.

co. and the purchase is confirmed by the handset without disclosing any banking or personal details. When Cell Pay Point. Consumers will have to wait for broad access. merchant fee not disclosed by FNB Internet Solutions. the vendor displays a dial string which the customer dials. The customer is authenticated by their mobile PIN. is chosen as the payment mechanism.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.000 account holders Customers who won’t be charged bank fees for goods purchased using Cell Pay Point. FNB’s online payment solution.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. Users can use Cell Pay Point on any of the registered merchants' websites.za . 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. FNB has 700. FNB The service started in July 2008. . as the Cell Pay Point solution requires vendors to sign up with the bank before the service is available on their website.179 .fnb.

Airtime or electricity purchased is free of charge. Domain Secured through Cost for usage Partners Additional information . authorising debit orders.Mobile payments 2010 . and is operated as a joint venture between Standard Bank and MTN. MobileMoney offers the following payment features: P2P money transfers.Mobile Money is a full bank account. MTN Banking consists of two components. It can be managed remotely via Internet or Mobile. making and receiving payments to and from any bank account in South Africa. The MTN MobileMoney account is a fully functional bank account integrated into Standard Bank’s systems and thus into the national payments system (NPS).180 MTN banking www. MobileMoney is a transactional account. A client is offered an option of two cards: a MobileMoney debit cash card or MTN MasterCard functioning as a credit card. MTN is the primary service provider. marketing and distribution. initiating stop orders. which allows for internet operability. buying prepaid airtime and electricity. in-store payments. MTN banking is codeveloped by mobile operator MTN and the Standard Bank. MTN banking is developed by MNO MTN and the Standard Bank.South Africa Short description MTN Banking is a division of Standard Bank.html . and its functionality accessed through the use of an MTN SIM card. responsible for account opening.co. account payments to various bankdefined beneficiaries. Prepaid airtime can be purchased for other users and for users on other networks. certain municipalities and Telkom.24).za/site/MTNBanking/index2. but with a zero credit limit. Type of service Type of technology Mobile remittance WAP / Internet . MTN MobileMoney and MTN Credit Card.mtnbanking. M-Banking SIM Bill payment and money transfers to other banks accounts generate transaction fees of ZAR 3 (EUR 0.

is faster than SMS and allows for real time interactive communications between customer cellphones and the SWAP system. or link their bank account or credit card for full SWAP Wallet functionality.Mobile payment services and pilots POC it www. 2008 – free From January 1. Recently (January 2009) POCit added POCit Elect to its service offering. pay money.pocit. USSD 2 is supported by all South African cellular operators and GSM cellphones. POCit allows subscribers to receive. SWAP Mobile www.co. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Payment Login name and PIN Until December 31.10 (EUR 0. Mastercard.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.181 .30 (EUR 0. .01) Request payment: ZAR 0.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. The use of multiple POCit accounts is not allowed. then 2% Partners Additional information Visa. enabling clients to make donations to selected charities without a fee.000 (EUR 153) free. Capitec Bank Only one account can be stored on one mobile phone. Users can add funds to their wallet with an electronic fund transfer. SWAP Mobile is has wallet functionality.02) Make payment: Up to ZAR 2.swapmobile. request. 2009: Receive payment ZAR 0.co. buy airtime and pay medical bills.

Mobile payments 2010 .co. transfers and prepaid purchases. to be processing 10 percent of payments made to businesses in South Africa by end-2009. merchant pays the following fees: Activation of account ZAR 20 (EUR 1.(ZAR 0.e. Partners Additional information The company’s target for next year is to secure 10 percent of the market by the end of the year. a so-called pay-as-you-go model.za . similar to the model employed elsewhere in the developing world.52) Batch transfer fee (every time the merchant wants his accumulated credit to be transferred to his bank account): ZAR 5 (EUR 0.20 per SMS) which can be avoided by choosing to receive the notifications in the online portal.5% There are some notification fees.05 per email or ZAR 0.wizzit. transactional bank account that uses cell phones for making person-to-person payments. Wizzit www.182 Type of service Type of technology Domain Secured through Cost for usage Mobile remittance USSD M-Payment PIN Free for consumer.38) Transaction fee: 3.. 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. 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 .South Africa Short description Wizzit offers a low cost. i.

USSD M – Payment 4 digit PIN Transaction fees: ZAR 6.co. The most popular type of Cellphone Banking transactions are balance enquiries. make inter-account transfers. mini-statements and prepaid top-ups. send notices of payments. ZAR 1.16) for every next ZAR 100 or part thereof. purchase airtime. Clients open accounts through one of 1400 ‘Wizzkids’. catering for different customer segment needs.00) Partners Additional Over the last few years there has been a surge in uptake. It operates without branches. with up . and has positioned itself as a virtual bank. Type of service Type of technology Domain Secured through Cost for usage Mobile Banking SMS.00 (EUR 3. WAP/Internet.absa.00 (EUR 0. with a maximum of ZAR 35. and make cardless ATM payments using Absa’s CashSend facility.90 (EUR 0. Wizzit defines its target market as the unbanked and under-banked population of South Africa.za – South Africa Short description Absa was the first South African bank to introduce Cellphone Banking services in the year 2000. Cellphone Banking allows clients to load beneficiaries and make payments.Mobile payment services and pilots information phones for making person-to-person payments. Cellphone Banking Absa www. view balances and statements. It is accompanied by a Wizzit maestro debit card for making payments in the retail market.55) for first ZAR 100 (EUR 8. who are members of the local community and can communicate with customers in their own language. mobile WAP internet and USSD).61) . transfers and prepaid purchases. Absa’s Cellphone Banking services are provided across three different technological platforms (secure SMS.183 .

businesses can receive payment direct from customers’ mobiles. securely and quickly. People can send money to family and friends.Mobile payments 2010 . Platform: Mi-Pay. 40. Absa claims to have 4 million clients on its mobile banking service. All that’s required to make a transfer is the recipient’s mobile phone number. and financial institutions can target and serve the huge mobile consumer base that exists within the region.000 SMEs use Absa’s Cellphone Banking. Individuals can go to a ‘SarafMobile’ agent to transfer money easily.184 information to 5000 new clients registering for Cellphone Banking each day. 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. There are 1. 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. the recipient is advised same-time via SMS to go to their local “SarafMobile” agent to collect the transferred cash.7 million logons to Absa’s Cellphone Banking services each month. Additional information . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS M – Payment PIN Not disclosed MNO: Saraf Mobile.

Tanzania and Democratic Republic of Congo (former Zaire) to make person-to-person payments via SMS.com .R. Congo Short description Celpay enables citizens of Zambia. Customers can load their wallet by paying a Celpay agent and can send it to benificiaries.Zimbabwe. Celpay has an independent distribution network which comprises of 100 agents. buy fuel.185 . easy way to do money transfers. The future plans of Celpay include expansion into Zimbabwe and Kenya. Tanzania and D.com www.mukuru. In Zambia.Mobile payment services and pilots CelPay www. Celpay is tried and tested and US$500 million worth of transactions were processed in the last five years.000. pay for subscriptions or top up a friend or relative’s mobile . South Africa Short description Mukuru is an online storefront that can be accessed by internet or phone. 6 major banks and recently launched a partnership with Zambia Postal Services Corporation which has over 200 post offices and postal agents.com – Zambia. Celpay Zambia expects to reach the US$1 billion mark by 2010. 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.celpay.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. who can retrieve the money in cash from Celpay agents. It is a quick. Mukuru.

transfer funds and also to make payments through mobile networks.efulusi. deposit and withdraw cash. It’s a UK – Zimbabwe/South Africa remittance service. but there are always member stations within the Harare city limits. None as such. Cost for usage Partners Additional information E-Fulusi Uganda http://www.com The participating petrol stations vary from month to month.Mobile payments 2010 . So about 10% of the transferred sum can be regarded as remittance fee. about 10% higher than ‘normal’ exchange margins. The system plans to launch similar services in Kenya. delivered on the recipient’s mobile telephone. Mukuru then will transfer the money to the intended recipient the next day via a voucher. UK customers can sign up and transfer money to Mukuru’s bank account. Malawi and Zambia.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 unfavourable exchange rates with 15% margin.tz . Monitise Type of service Type of technology Domain Secured through Cost for usage Partners . Mukuru. If someone wants to redeem the SMS at the Point of Sale. banks and mobile handsets. Mobile Banking. before redeeming the voucher.co. he or she must be identified through a passport by the shop’s employee.186 phone. manage a bank account. Mobile Remittance SMS M – Payment PIN Not disclosed Technology: E-Fulusi. Type of service Type of technology Domain Secured through Mobile remittance SMS M-Delivery Passport.

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. In due course the service will expand into neighbouring countries. Congo Brazzaville.5 million representing funding by the Africa Enterprise Challenge Fund (AECF) to deliver its service in East Africa. Besides enabling money transfers between MTN subscribers.Mobile payment services and pilots Additional information Monitise has recently been awarded USD 1. Democratic Republic of Congo.000 (EUR 1. Liberia and Uganda.1.com .Uganda.mtn. 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. Ethiopia. Tanzania and Zambia MTN MobileMoney www. The move comes after the company launched its Mobile Money Transfer in Uganda following the completion of a 5-month trial. Guinea Bissau. MTN claims to have 600 agents where users can transfer and withdraw money. Technology: Fundamo MTN Uganda Mobile Money users are allowed to transfer amounts between UGX 5. Congo Brazzaville. Mobile Remittance SMS M – Payment PIN Free during the pilot. commercial fees not yet disclosed MNO:MTN. . Benin. MTN Mobile Money is available to all MTN banked or unbanked subscribers. Rwanda. Monitise East Africa will initially offer services in Uganda with headquarters in Kampala. Guinea.187 .98) and UGX 1 million (EUR 398) to another person. including Burundi. Guinea Bissau. Kenya. MTN’s service MTN Mobile Money allows MTN subscribers to send money. buy airtime and pay bills using their mobile phones. Bank: Standard Bank Uganda. 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. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. Guinea.

bankabillion. 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. money transfer. .World Short description Bank a billion is an initiative by Grameen and Obopay to serve a billion unbanked people by 2018.Mobile payments 2010 . 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. 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.188 Bank a billion www. This includes access to savings.org . The potential for immediate and broad global impact on the problem of financial exclusion is vast. payments and micro-credit. 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.

Annexes .

and personnel in the United States. and constitutes the last element in the production-consumption chain of goods and services. Consumer A consumer is an individual or household that use goods and services generated within the economy. systems. 2008. 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. AMPS Advanced Mobile Phone System (AMPS) is the analogue mobile phone system standard developed by Bell Labs. standards with international standards so that American products can be used worldwide. and officially introduced in the Americas in 1983 and Australia in 1987. It should not be confused with the mobile phone standards called cdmaOne and CDMA2000 (which are often referred to as simply ‘CDMA’). The organisation also coordinates U. ANSI The American National Standards Institute is a private non-profit organisation that oversees the development of voluntary consensus standards for products.5G / 3G technology of mobile telecommunications standards that use CDMA.S. to send voice. services. to make a globally applicable third generation mobile phone system specification within the scope of the International Telecommunication Union.Annex I: Glossary 3GPP The third generation partnership project (3GPP) is a collaboration of groups of telecommunications associations. processes. It was the primary analogue mobile phone system in North America (and other locales) through the 1980s and into the 2000s. data. . CDMA Code division multiple access (CDMA) is a channel access method utilized by various radio communication technologies. a multiple access scheme for digital radio. that use CDMA as their underlying channel access methods. The consumer is the end-user of a product or service. and signalling data (such as a dialled telephone number) between mobile phones and cell sites. As of February 18. 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. CDMA 2000 CDMA2000 is a hybrid 2.

MasterCard and Visa. The ECB was established by the EU in 1998 with its headquarters in Frankfurt. Europay International SA was absorbed into MasterCard in 2002. European Commission The European Commission – formally the Commission of the European Communities – is the executive branch of the European Union. JCB joined the organisation in December 2004. with worldwide projection. a natural unit consisting of different elements in an area functioning together with other factors of the environment. IC Card systems based on EMV are being phased in across the world. European Central Bank The European Central Bank (ECB) is the Central Bank of the Euro currency area.191 . The central bank is the entity responsible for the monetary policy of a country or a group of member states. Ecosystem Term derived from biology. ETSI is an independent non-for-profit standardisation organisation of the telecommunications industry – equipment makers and network operators – in Europe. implementing decisions. Its primary responsibility is to maintain the stability of the national currency and money supply. EMV EMV is a standard for interoperation of IC (or Chip) cards and IC capable point of sale terminals and ATM’s. payment and delivery . The body is responsible for proposing legislation. Germany. under names as IC Credit and Chip and PIN.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. upholding Union’s treaties and the general day-to-day running of the Union. 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. . Also the method of using the innovation is similar or almost similar to using the product or service it is supposed to replace. Easy Sell An easy sell is an innovation that only differs slightly from its precursor. The name EMV comes from the initial letters of Europay.take place. the three companies which originally cooperated to develop the standard. for authenticating credit and debit card payments. ETSI has produced standardizing the GSM cell phone system and the Tetra professional mobile radio system. ETSI ETSI is short for European Telecommunications Standards Institute.

The presence of financial institutions facilitates the flow of monies through the economy. and prime brokerage. Common types of financial institutions include banks. GSMA The GSM association (GSMA) is the global trade association representing 700 GSM mobile phone operators. Financial institutions generally fall under financial regulation from a government authority. savings accounts are pooled to mitigate the risk brought by individual account holders (see adverse selection) in order to provide funds for loans. They are responsible for transferring funds from investors to companies.Mobile payments 2010 . Global Platform A global platform describes some sort of hardware architecture or software framework that allows software to run on a global scale. FX rate FX rate stands for foreign exchange rate – also known as forex rate or exchange rate. Should the yield curve become inverse. Innovation An innovation is a good. Such is the primary means for depository institutions to develop revenue. firms in this arena will offer additional fee-generating services including securities underwriting. The primary goals of the GSMA are to ensure mobile phones and wireless services work globally and are easily accessible. operating system. stock brokerages. building societies. 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. enhancing their value to individual customers while creating new business opportunities for operators as their suppliers. FI or Financial Institution A financial institution acts as an agent that provides financial services for its clients or members. Its primary responsibility in recent years has been the implementation of SEPA. It specifies how much one currency is worth in terms of another. Also the way consumers should use the innovation is different from the way consumers had to use its precursor. In addition. Typical platforms include a computer’s architecture. . To do so.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. the Single European Payments Area. credit unions. programming languages and related runtime libraries or graphical user interface. 180 manufactures and suppliers support the association’s initiatives as key partners. Financial institutions provide a service as intermediaries of the capital and debt markets. and similar businesses. in need of those funds. asset management firms.

. Sema Group. Modular architecture Refers to a design of any system composed of separate components than can be connected together. Microsoft. and it has the entire infrastructure required to provide mobile telephone service. nor does it have all of the infrastructure required to provide mobile telephone service. 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. dealing in commodities that they do not produce themselves. Materna. This device was developed by Siemens. Ericsson. MNO Mobile Network Operator is a company that provides mobile phone service and has its own frequency allocation of the radio spectrum.193 . in order to produce profit. The payer may or may not be ‘mobile’ or ‘on the move’.Annex I: Glossary Merchant Merchants function as professionals who deal with trade. Mobile terminated SMS billing Payment method via SMS where the intended payee closes the payment by receiving one or more SMS messages. Siemens and TC TrustCenter in order to demonstrate the deployment of electronic signatures using a mobile signing device. 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. 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. MoSign MoSign is a project (short for Mobile Signature) initiated by Deutsche Bank. 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.

Perceived Risk Perceived risk is the subjective judgment that people make about the characteristics and severity of a risk. . Physical place used for user authentication. that a payments institution would be an entity providing as its core business payment services. or to fulfil a legal obligation. the PSD does allow for hybrid institutions. Exposure to the consequences of uncertainty constitutes a risk. it houses confidential information. It is envisaged. authorisation and stored credentials. The consequence is that every cross-border payment in the EU can be treated as a domestic payment. Payment A payment is a transfer of wealth from one party to another. 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. A payment is usually made in exchange for the provision of goods. services or both. It refers to a location where a transaction occurs.Mobile payments 2010 . 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. Risk Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. However. which is oftentimes a retail shop or the checkout counter in that shop. 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. Secure Element Also Security Element. as distinct from other banking services. It refers to the transportation of messages wirelessly and without landline. PSD PSD is short for Payments Service Directive. POS POS is short for Point Of Sale. such as telecoms providers.

processes or practices.195 . This is the vision. Standardisation Standardisation is the process of developing and agreeing upon technical standards. criteria. NFC and mobile communication. SEPA marks the end of international payments within the EU. 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 . but using the innovation requires a high degree of behavioural change.Annex I: Glossary SEPA SEPA is short for Single Euro Payments Area. This implies that it can receive input which is processed and delivered as an output. methods. Sure Failures A sure failure is an innovation which is differs only slightly from its precursor. direct debits and cards. StoLPaN is a pan-European consortium supported by the EC’s IST program. This set includes bank transfers. There are two categories of smart cards: memory cards contain only non-volatile memory storage components and perhaps some specific security logic. StoLPaN Short for ‘Store Logistics and Payment with NFC. directive and goal of the European Commission to let consumers and businesses within the EU pay with one set of payments instruments. SMS Short Message Service is a communications protocol allowing the interchange of short text messages between mobile phone devices. But the behaviour changes using the innovation require are limited. Microprocessor cards contain volatile memory and microprocessor components. StoLPaN examines the potential for bringing together the new kind of local wireless interface. 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. A standard is a document that establishes uniform engineering or technical specifications. Smart Card A smart card is defined as any pocket sized card with embedded integrated circuits which can process information.

Currently. The UICC ensures the integrity and security of all kinds of personal data and it typically holds a few hundred kilobytes. There is no store-and-forward capability that is typical of ‘normal’ short messages.196 UICC The Universal Integrated Circuit Card (UICC) is the chip card used in mobile terminals in GSM and UMTS networks. USSD Unstructured Supplementary Service Data (USSD) is a capability of all GSM phones. . It is standardized by the 3GPP. UMTS Universal Mobile Telecommunications System (UMTS) is one of the third generation (3G) cell phone technologies. Response times for interactive USSD based services are generally quicker than those used for SMS. which is also being developed into a 4G technology. It is generally associated with real-time or instant messaging type phone services. and is the European answer to the requirements for 3G cellular radio systems.Mobile payments 2010 . the most common form of UMTS uses CDMA as the underlying air interface.

J. H.iacr.cl.eu (2007) http://europa. Pakistan – June 2007 Contactlessnews. Tel Aviv University. Lycklama.April 2007 .June 2006 Journal of Payment Strategy & Systems (2007) Understanding buyer and seller behaviour for improved payment product development.stm Betty Collis (1993) Betty Collis (1993).contactlessnews. Harvard Business Review .com (2008) http://www. C.org (2005) Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems.ac. University of Twente.cam. Computer Fraud & Security (2007) analysis of mobile payment security measures and different standards.bbc. Gerhard Hancke.uk/~gh275/relay.eu/rapid/pressReleasesAction.iacr. Understanding the Psychology of New Product Adoption.pdf Europa. Ziv Kfir and Avishai Wool.Annex II: References References BBC (2008) http://news. Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar.com/news/2008/01/11/contactless-market-continues-togrow-while-nfc-forecasts-revised-downward/ Eprint. Ali Bhutto Insitute of Science and Technology.uk/2/hi/uk_news/1966247.2007 http://www. Computer Fraud & Security. Israel . T. Gourville. Karachi. the Netherlands.org/2005/052. Smorenberg.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. D.co. Liezenberg.2005 http://eprint. UK . Journal of Payment Strategy & Systems . University of Cambridge.pdf Harvard Business Review (2006) Eager Sellers and Stony Buyers.

mobilegazette.nfc-research.com (2008) http://www. University of London.com/newsletters/MobilePaymentsUpdate.telecompaper.com/2007/04/abi_research_sc.php?id=45 Payments News (2007) http://www.html Technology Review (2008) http://www.mobilemonday.39044192.thepaypers. Information Security Group.at/index. UK .org Mobile Payments Update (The Paypers) http://www.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfcphone-at-3gsm/ Mobile Monday (2002) http://www.com/nokia-6212-classic-08x04x15.paymentsnews. feeds and research on the telecom industry: www.zdnetasia. Heiko Knospe.00.technologyreview.mobeyforum.com For news and research on the payments industry: .2006 Mobey Forum www.htm General Internet resources For news on the mobile payments industry we can recommend the following websites: For news.com (2007) http://www.com/news/communications/0.Mobile payments 2010 .com/Infotech/17355/page2/ ZDnetasia.htm Mobilementalism (2006) http://mobilementalism.62031790.aspx Mobilegazette.198 Juniper Research (2008) Juniper research: Mobile Payments: Strategies & Markets 2007-2011 Heiko Knospe (2006) Secure M-commerce Scarlet Schwiderski – Grosche.net/news/mobile-payment-market-to-reach-eur-55-billion-in2006 NFC-research (2007) http://www.

199 .nfc-research.com www.at .paymentsnews.finextra.com www.Annex II: References www.com www.com For more information on NFC: www.org www.contactlessnews.thepaypers.nfc-forum.

BT/Telfort and others. which we consider crucial for the further development of global e-business. numbering. we help corporate users to ‘choose & use’ the transaction services that fit their . e-identity. Chiel holds an MA in Mechanical Engineering and Industrial Organisation from Delft University of Technology. mobile payment. With our in-depth knowledge and experience gained on both the demand side and the supply side. Dutchtone. Callmax. Chiel is one of the thought leaders in online and mobile payments. and number portability for several telecom operators. Our key practices include online payment. We do this for single clients but also for groups of clients. e-invoicing and e-identity. an independent full service consulting firm specialised in payments and transactional services. shaping breakthrough business and market innovations. schemes and standards. About Innopay Innopay is an independent full service consultancy firm specialised in payments and related transaction services. e-invoicing. Enertel. He focuses on delivering in-depth analysis on trends across the Benelux and the Western European industry. starting from 1995. Our leading industry reports can be downloaded for free. On the other side. Consequently. Given our independent position. As senior research analyst he has detailed knowledge about the Benelux telecommunications industry. we are ideally positioned to help our clients determine the direction of their growth. including BEN. We devote research time and investments to help peer professionals ‘structure & understand’ these topics and actively facilitate industry knowledge transfer. interconnection. we have extensive experience in developing multi-party transaction schemes and accompanying messaging standards in diverse industries such as financial services. Ed Achterberg Ed Achterberg founded Telecompaper in 2000. Prior to Telecompaper. 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. cards and related regulation. we work for all players in the industry. He has a Master of Science degree from the Delft University of Technology. insurance and document exchange.Annex III: About the editors and publishers Chiel Liezenberg Chiel Liezenberg is a founding partner of Innopay. for both the mobile and fixed/broadband market. Ed Achterberg worked as telecom consultant and focused on telecom regulation and legislation.

For more information visit www. The company employs fifteen editors and analysts at its headquarters in The Netherlands. operational and technical aspects. focussed. About Telecompaper Telecompaper has kept telecommunications professionals up-to-date since 2000. We use a multi-disciplinary approach covering commercial. .telecompaper.innopay.com or contact Ed Achterberg at ed@telecompaper. News feeds: Telecompaper actively tracks the global telecommunications industry. Research: Our expert researchers are continuously monitoring the telecom industry. Telecompaper provides international customers with research.201 . Using our news database can make your life easier as the news is timely. and also employs correspondents in various countries who track their local telecom markets. The news items are written in English and are specifically targeted at telecoms professionals. For more information visit www. promotions updates and regularly updated company profiles. we also have local presence as our correspondents provide us with news from their local market. Although we have a global focus.com or contact Chiel Liezenberg at chiel@innopay. 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). we also provide weekly Digests on various topics and regions.com or +31 30 6349600. quarterly reports on the Dutch mobile and broadband industry. but also offer several pre-defined feeds such as Asia Telecom Daily.Annex III: About the editors and publishers specific business needs from the wide array of often industry tailored transaction services on offer. News access: Our News Access subscriptions allow you to log in and search our site for news items. Our researchers have a deep understanding of the telecommunications markets and can help you make informed decisions. We can develop a bespoke news feed or corporate intranet solution. Western European Telecoms. They offer answers to ad-hoc questions and compile reports such as research briefs. support and advisory services.com or +31 20 6580651. In addition to website access. and country-specific Feeds. to-the-point and objective. company updates. competitive updates.

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