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A fortnightly update on the mobile payments sector

Mobile Payments Update

Vol. 2, Week 36, 21 August - 04 September 2008

regulation permits companies to process data Therefore, automated messages (via mail,
Contents only if one or more of the criteria below are SMS or other such channels) without a
Feature articles……………………………..1 met: human interface are prohibited as this inhibits
News in brief…………………………….…..4 • explicit agreement from the party opting out.
Feature Articles • processing of the data is allowed when
necessary for the execution of the
agreement between company and
Privacy in EU-based mobile customer (for example banks process
payments services and store information to be able to
conduct business)
Of the many mobile payment initiatives
launched last year, many are aimed at • only data that is necessary and
payments at the point of sale (PoS) and justifiable to execute the agreement
these are primarily based on Near Field between the parties can be stored (for
Communication. Many people hail NFC example telecommunications companies
payments systems as an opportunity to that need an address or e-mail address In conclusion we can say that EU privacy
connect loyalty programmes and other to send an invoice to). regulation is quite strict on the use of data
marketing options to the consumer’s In addition, there are conditions that govern gathered by companies, including m-
wallet. However, questions are emerging the use of these details. payments services providers. This should
about privacy in relation with NFC satisfy people wondering if m-payments
An important difference is made between
payments and marketing. services will breach their privacy. A concern
using data for sending opt-in messages and
for operators though is that automated
For consumers, NFC mobile payment sending opt-out messages on the other hand.
advertising to mobile payments customers is
methods compete with other PoS methods For sending opt-in messages, companies
only legal when they have given their explicit
like debit cards and cash. For this group to must always have explicit prior consent. The
consent, which could significantly slim down
see the advantage of mobile PoS payments term ‘explicit’ means that the consumer
the target group. However, one early success
over traditional payment methods, mobile himself has to give the consent, and that
story is UK MVNO Blyk which offers mobile
PoS-initiatives must offer more than consent for opt-in messages cannot be given
services in return for targeted
payments alone. Especially since competition ‘by default’. For example, mobile payments
advertisements. In February this year the
on price of the payments system is often not services providers can state in their terms
company claimed it has an average response
possible without subsidies because of the low and conditions that they want to be able to
rate of 29 percent across 498 campaigns.
transaction volume. In fact, some initiatives approach customers with automated
Blyk said most young people don't see the
like the Dutch Payter initiative, base important advertising, but according to EU legislation
marketing messages as advertising but as
parts of their business case on delivering they will need explicit agreement from the
information they would like to have. This
services not related to payments. Examples party involved – and terms and conditions are
seems to suggest that if the incentive to
of these services are downloading movie not explicit enough. Should the customer
receive marketing messages is interesting
trailers and tickets via NFC equipped smart consent to opt-in marketing, only the
enough to consumers, they will give that
posters, loyalty programmes, ticketing and companies that were given this consent are
explicit permission.
advertising via SMS. allowed to approach the consumer with
Especially loyalty programmes enable mobile automated systems (without human
interference), such as e-mail or SMS.
payment initiatives to store large quantities of ING unveils details about its
valuable consumer data. This data can be For sending opt-out messages, companies
used to send people focused advertisements. have fewer restrictions. Consumers only need
NFC trial in Romania
For example: consumer A buys a ticket for a to give implicit consent for receiving The ING bank will this year launch a
horror movie in a cinema using a mobile PoS messages. Companies could include a contactless payments trial in Romania,
payment method. When another horror movie statement in their terms and conditions General Manager ING Payments Retail
plays in the same cinema and the cinema saying that they will use the data they gather Europe, Mark Buitenhek, said at a mobile
owner has tickets ‘left over’, he can send an about consumers and by purchasing goods or payments conference in the Netherlands.
advertisement with a last minute discount to services, the consumer implicitly gives According to Buitenhek, consumers in
this consumer and other consumers matching consent for the use of this data. Romania are eager for such services. Other
a specific profile. However, companies do have to provide an factors that drove the choice for Romania are
However, the question is whether this in line option to cancel this consent with every the fact that the bank has a retail banking
with EU privacy legislation. In 1995, the EU message they receive. Also, there are presence there, the fact that there are only 2
has issued a privacy directive (95/46/EG), restrictions to the channels companies can major mobile operators, and that transaction
which forced EU member countries to use for approaching their opt-out customers. costs are generally higher, thus there is a
implement specific privacy regulation in Only human operated channels (such as business case to make for mobile payments
September 2001 at the latest. This privacy contact via telephone) are allowed. services.

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

Buitenhek believes that NFC will definitely be successful, the bank will roll out the the company would also add Sri Lanka and
become the standard and expects services to services commercially. the Philippines. Under the new plans, Luup
proliferate within three to five years. However, will act as a payments processor no longer as
to reach maturity, the industry will need a provider of services to consumers.
standards, and cooperation between the Luup has global ambitions On its homepage, Luup proudly proclaims it is
various stakeholders is a necessity. building an international mobile transaction
Mobile payments systems and services
However, about mobile banking, Buitenhek provider Luup once began by offering network (by partnering with leading banks
was more sceptical. In the west, mobile mobile wallet services to mobile users in and financial institutions around the world).
banking is ‘just’ an additional channel with several European countries. Recently The company strongly believes such a
mobile financial information services being however, the company has changed its network needs to be open and usable by
the key ingredient. He does not believe that focus to creating a global mobile customers of all banks and all operators.
banking consumers in the west want to do a transaction network through partnerships, Jørgensen hinted at some interesting projects
lot of banking ‘on the go’. In emerging CEO Thomas Bostrøm Jørgensen told that are coming up soon for Luup as well as
markets, however, there is a likely to be a Telecompaper in an interview. some new collaboration models, but would
demand for mobile banking services as not disclose more.
The company launched in Oslo, Norway in
customers have fewer options to do their Jørgensen is very excited about a new m-
2002 as a licensed e-money services
banking. Especially areas with low internet payments service that will go live in
provider In Germany, Norway and the UK
penetration will see successful mobile September for the National Bank of Abu
Luup provides mobile wallet services to
banking services. Dhabi. The mobile payments service is based
consumers. However, the company has now
changed its focus from launching consumer on Luup’s platform and allows payments via a
ING using services independently, to establishing connected bank account or stored value
Maestro’s PayPass partnerships with banks and financial accounts on the handset. The stored value
system for the trial institutions around the world in its aim to accounts will allow unbanked consumers to
in Romania. The create a global mobile transaction network. use the service as well. The service enables
bank is trying to Although there are no performance details person-to-person payments to anybody with a
make its payment available, Jørgensen said the company is mobile phone, so not only between registered
solution as simple running according to plan and meeting users of the system. Notably, ATMs will
to use as possible. internal targets. Predictably, Luup is still provide cash-out services. The service further
Customers can heavily investing in new technology and enables bill payments within the United Arab
apply for the expansion to new markets. Emirates as well as donations to charities.
service online after Luup began offering mobile payments
which the wallet services to consumers in Germany and the
application will be UK under the brand name Luupay and in
86 % of stakeholders
send over the air Norway under the Luup brand. In Germany, believe in collaboration
(OTA) to the user. Luupay is currently the dominant mobile model for mpayments
Users can then payment services provider. The company has
transfer money to 86 percent of industry stakeholders are
a few major partnerships there with debitel,
the stored value The Nokia 6212 Classic
confident that NFC-based proximity
E-Plus and Freenet, among others, for top-
wallet on the payments will be adopted through a
ups. In the UK and in Norway, however, Luup
phone. The application does not require a “collaboration model,” bringing together
is no longer actively marketing the mobile
PIN for payments (tap and go) up to EUR 25, banks, mobile operators, merchants,
payments services. Jørgensen did not say
but does ask for a code when users top up handset manufacturers and other service
how many customers the company has in
their wallet. The service will be pretty ‘bare providers, according to a survey by the
these markets, he did however, emphasise
bones’ and simple, which is a deliberate Smart Card Alliance Contactless Payment
that the company gained extensive
choice by ING. To run the trial, the bank is Council.
experience through offering these services.
working together with Maestro, Venyon, Collis According to the Alliance, mobile payments
Last year, the company began to refocus its
and Toro. are definitely going to happen. It’s not a
efforts from the European markets to the
The trial will begin in November 2008 and will question if it’s hitting off; it’s a matter of when.
Middle East and South East Asia. However,
run for six months. Some 500 customers will But, like other organisations, the rather
rather than offering the services directly to
participate in the pilot and the bank has optimistic Smart Card Alliance also sees
consumers the company is seeking partners
already signed-up Burger King, Hollywood inhibitors. On of them is the great number
to launch services. An example is the
(cinema) and Remedio (drug store) to accept and variety of stakeholders in the sector. As
partnership with the National Bank of Abu
contactless payments. ING is still seeking there are many stakeholders in the mobile
Dhabi. Luup considers the Middle East and
further partners. The handset that will be payments arena, alignment of all parties is
South East Asia as key markets for mobile
used is the Nokia 6212. In a second phase, extremely difficult. The survey found that
remittance services. The company hopes to
the bank will also look at value added because of the large number of players
enter these markets through partnerships
services in addition to payments, such as involved in the ecosystem for proximity
with financial institutions. Initially the focus is
smart posters, Buitenhek revealed. Following mobile payments, no initiative is rolling out
on India, Pakistan and Bangladesh and the
this trial, ING is planning another trial with a mass deployment.
company is working on a remittance service
contactless card and also a pilot in a different, between those countries and the UAE. Later Generally, there are four scenarios for
as yet undisclosed, country. Should the pilots business models that are considered viable:

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

1. Operator-Centric Model: The mobile forwards in mobile payments by introducing Overview of the Dutch
(virtual) network operator acts to deploy contactless credit and debit cards. But they
mobile payment applications to NFC- have adopted a “wait and see” attitude.
mobile payments market in
enabled mobile devices. This can be in Turning to contactless payments drives two days
the form of a mobile wallet or charging merchant acceptance in important retail The 25th and 26th of August, the IIR Mobile
to the customer’s mobile telephone bill. segments including quick service food and Contactless payment conference took
2. Bank-Centric Model: A bank manages outlets, convenience stores and movie place in Amsterdam. The conference
the mobile payment tools and theatres. Operators now support the managed to get the most important
acceptance with merchants. Payments Collaboration Model, recognising the initiatives and stakeholders in the Dutch
are processed according to their own inadequacies of the Operator-Centric Model. mobile and contactless payment industry
existing processing infrastructure. Merchants are an important factor in the as speakers to the conference.
evolution of the NFC mobile payments
3. Peer-to-Peer Model: An independent Representatives of the three most important
ecosystem. Merchants would be required to
peer-to-peer service provider provides stakeholders were present: the initiatives, the
upgrade their systems to be able to accept a
secure mobile payments between merchants and the consumers – giving the
new payment method and wait for a mobile
customers or between customers and visitor a comprehensive overview of what’s
payment method to take off, before investing
merchants. going on on the Dutch mobile payment
in new payment acceptance infrastructure.
4. Collaboration Model: This model market.
Merchants like European parking lot exploiter
involves collaboration among banks, Q-Park are yearning for a payment method
mobile operators and other stakeholders that promises high throughput, but they want Initiatives
in the mobile payments value chain, to wait for a ‘winner’ service to emerge, or
The mobile payment initiatives that are
including a potential trusted third party wait for interoperability of different mobile
currently in beta in the Netherlands are:
that manages the deployment of mobile payment systems.
applications. Payter
So although some merchants are literally
Those surveyed think that a third party in the waiting now for a mobile payment method Payter is a mobile NFC-based initiative that is
role of trusted service manager needs to step that receives mass deployment, the sheer not initiated by a bank nor by a mobile
in and coordinate the activities of the key number of stakeholders and the network operator, but by investors.
players, including the final selection of disagreement on the business model, could Because the incumbent Dutch payment
handsets and chip standards, merchant leave them without any mobile payment method (PIN based-debit card payments) is
enablement, standards for certifying and options in the short term. very cheap and widely adopted, Payter does
deploying secure payment applications and not primarily aim at gaining money from
development of a model for revenue-sharing. payments itself. Also it’s hard to earn money
on payments without a banking license.
Banks have the ability to make a step
Payter bases its business case on delivering
peripheral services like loyalty and retail
services, advertisement and broadcasting
Payter has the ambition to roll out their pilot –
which is up till now limited to Rotterdam – to
Amsterdam, the Hague, Utrecht, Eindhoven
and Arnhem.
Rabobank initiatives
Rabobank is one of the Netherlands’ largest
retail banks. Rabobank decided to establish
its own MVNO on the KPN network.
Rabobank is involved in several mobile
payment trials, an NFC trial with a snack bar
chain, Coca Cola vending machines, ticketing
for a zoo and, since June 2008, an SMS
based person to person payment service,
dubbed RaboMobiel

Supermarket C1000
On top of that, Rabobank was involved in an
NFC trial with super market C1000. A
Source: Smart Card Alliance
selected group of regular consumers was
given an NFC enabled phone for debit card
(PIN) payments. The NFC phone replaced
the debit card in this pilot.

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Source: Smart Card Alliance

Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

Supermarket Albert Heijn their mobile phones joining the customers of will also receive prizes. Through mobile
Albert Heijn is another super market chain Mobilkom Austria and ONE. Paybox Austria ticketing technology, a mobile phone user
(market leader in the Netherlands) that is will then grow to more than 4 million possible receives a bar or pin code which is sent by its
involved in mobile payments. One users of its mobile payment service. Paybox operator to its mobile handset via text
supermarket acts as accepting merchant in Austria has deals with parking lot operators, message. This code can then be quickly
the Payter trial and another Albert Heijn shop the Austrian railways, online shops and more scanned and validated directly from the
experiments with ABN Amro bank with where its user can pay with their mobile mobile's display screen.
contactless payments. Especially shops that phone. The mobile parking service was
have high throughput and hence value small launched in autumn 2003 and currently has Valkenswaard enables parking
transaction times are suited for mobile more than 250,000 registered users, who payments through SMS
contactless payments. paid for more than 20 million parking tickets Netherlands - The Dutch town of
since the launch. Valkenswaard will introduce the option to pay
for parking by sending a SMS or calling a
For European parking garage exploiter Q- 12% of Belgians interested in m- provider. The new service will be added to
park, this is the main reason for participating paymets - survey existing options such as payment in cash or
in the Payter NFC trial. Quick transactions Belgium - Communications agency by the Chipknip chip card. In order to pay by
are essential for high throughput in parking MediaEdge has questioned 1,000 mobile SMS or phone call, users must register with
lots. phone users. Some 12 percent said they one of three parking providers: Park-line,
Several merchants gave their view on mobile would like the idea of mobile payment. One Parkmobile or Yellowbrick. Payment is made
payments on the conference, and they all out of four also said they would not object to by reporting the parking ticket machine
seem to agree on the main advantages of giving his phone number away for advertising number upon arrival and departure.
mobile payments: purposes. In the age group 15-24 years, the
figure is higher, 35,5 percent. Inside Contactless teams up with
- shorter transaction time
SAETIC to bring contactless EMV
- higher throughput Net Mobile plans to acquire bank cards to Spain
- less cash payments (cash for mobile banking - report Spain - Inside Contactless, a provider of
payments have high handling Germany - German mobile applications contactless microprocessor platforms, has
costs) developer Net Mobile plans to acquire partnered with Sociedad Anonima Espanola
German bank Werther, so it can launch de Tarjetas de Identificacion y Credito
Germany's first mobile bank, according to (SAETIC), a Spanish manufacturer of plastic
German financial magazine Wirtschaftswoche payment cards for the banking and public
The end-consumers, who had an opportunity citing unnamed sources. With the acquisition transportation industries, to bring contactless
to have their say in a panel, just want to make of Werther, Net Mobile will not have to apply EMV cards to Spain.
sure that the costs of mobile payments will for its own banking licence, thus making it Under the agreement, the companies will
not be charged to them. The Dutch debit card easier to launch mobile banking services. Net collaborate to incorporate Inside’s next-
scheme is very efficient and costs the Mobile expects that mobile banking will be generation MicroPass contactless technology
merchant less than handling cash; hence responsible for half of Bank Werther's into an upcoming family of contactless EMV
merchants are willing to offer this payment revenues in the future. products from SAETIC that will be available in
option at no charge for the consumer.
both plastic card and contactless sticker form
Therefore, a new payment method should not Mobile World offers online top- factors.
charge the end consumer anything. ups via Luupay
The MicroPass platform is designed to power
Also, consumers indicate they only Germany - The Phone House Germany's
open standard contactless and dual-interface
appreciate peripheral services like prepaid brand Mobile World has started
bank card payments along with other value-
advertisement or broadcasting services on offering online top-ups using the technology
added applications in all global regions. Each
NFC phones in case they themselves can from mobile payments provider Luupay.
of the MicroPass family of products is
determine which messages they want to Mobile World customers can now top-up their
designed to meet the demands of issuer
receive and which messages not. call credit via the portal.
organisations in the bank card payments,
Jersey Telecom offers mobile transit and access control markets. SAETIC
ticketing for Jerseylive uses a variable colour digital laser printing
system, enabling cards to be printed with
News In Brief Jersey - Jersey Telecom will offer a mobile
variable data such as photos, barcodes, text,
ticketing service for the first time at this year's
etc. in a single step with the background
Jerseylive music festival, on 30-31 August. In
Europe order to receive a mobile ticket which
design directly from the computer output. The
company also offers dual-interface production
consists of a bar code, festival-goers will
T-Mobile Austria signs up for have to text SYLIVE to 88600 each day of the
capacity based on the ‘flexible bump’
mobile payments by paybox event. Festival-goers can validate their bar
Austria - T-Mobile Austria and its subsidiary code at the Jersey Telecom stand in order to
Tele.ring have decided to join the Austrian O2 Wallet trial shows clear
redeem gifts, such as food and drink
mobile payments provider Paybox Austria. consumer demand for NFC
vouchers, festival survival packs and other
From the autumn of this year, T-Mobile and United Kingdom - The O2 Wallet trial in the
Jerseylive goodies. Users who text in will only
Tele.ring customers will be able to pay with UK has shown that 78 percent of trialists
be charged the standard network rates and

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

would be interested in using contactless enable the calculation of payments against Peoples, Octopus team on self-
services if available, and 9 out of 10 were specific products or services. Additionally, service mobile bill payments
happy using NFC technology on a mobile corporate branding can be applied. The Hong Kong - China Mobile Peoples
phone. The results of the NFC technology registration process as well as the account Telephone, which operates the Peoples
trial reveal clear consumer demand for such management can be completed online by brand, has teamed up with smartcard
services. The main benefits cited by trial eMerit customers, without any human payment system Octopus Cards to launch
participants were convenience, ease of use intervention. self-service payments in Hong-Kong.
and the status of having such an innovative Octopus self-service payment machines are
device. There was particularly strong interest available at 46 Peoples outlets, enabling
in having Oyster on mobile phones, with 89 Asia Peoples customers to pay their mobile phone
percent of trialists interested in taking this up. bills. Peoples customers should enter their
Over two thirds said they would be interested SSL Wireless, Islami Bank mobile phone number and password at the
in having the Barclaycard Visa payWave Bangladesh team up for m- Octopus payment machine, and the amount
feature on their mobile in the future. The O2 of their mobile phone account will be
Wallet trial took place between November displayed on the screen. After they make the
Bangladesh - Bangladesh mobile services
2007 and May 2008 and involved 500 trialists payment, a receipt listing the payment record
provider SSL Wireless and Islami Bank
equipped with Nokia 6131 NFC handsets. and the remaining value on the Octopus will
Bangladesh have signed an agreement to
Having Oyster on their mobile phone actually be printed out. Additionally, until 25
provide mobile banking services in
increased trialists' use of public transport, September, customers who pay through the
Bangladesh for all the major network
with 22 percent of trialists using Pay as You Octopus self-service payment machine can
operators, including Grameenphone, Aktel,
Go Oyster reporting an increased number of participate into a draw to win weekly prizes,
Banglalink, Warid Telecom, CityCell and
journeys. Overall, almost 50,000 tube including a Nokia 5310s and HKD 1,000
TeleTalk. Under the agreement, SSL
journeys took place using O2 Wallet over the monthly fee rebate.
Wireless will provide both Push and Pull
six months trial. A total of 87 percent of
Banking services to Islami Bank Bangladesh
mobile Oyster trialists said availability of the Globe Telecom, RBAP renew
using SMS. Customers of Islami Bank
service would be likely to influence their mobile banking partnership
Bangladesh that want to check details of their
purchase of a new mobile phone. Philippines - Filipino G-Xchange (GXI),
account balances and their mini account
statements have to send a standard SMS Philippines operator Globe Telecom's mobile
Alliance&Leicester adds text commerce subsidiary, and the Rural Bankers
from their handset to a designated short code
alerts to m-banking service Association of the Philippines (RBAP) have
that SSL Wireless provides to Islami Bank.
United Kingdom - Alliance&Leicester has signed a memorandum of understanding
After receiving the SMS from the customer, a
added text alerts to its mobile banking formally renewing their partnership and
query will then be dispatched from the
service, to enable its customers to keep track agreeing to further expand the mobile phone
encrypted server that is installed on Islami
of their cash. Alliance&Leicester m-banking banking services (MPBS) of rural banks.
Bank Bangladesh's end to the customer
users can opt in to receive SMS text alerts GCASH is Globe's mobile commerce service
letting them know the details of their request.
when their current account balance reaches which allows Globe and Telekom Malaysia
SSL Wireless has introduced the remote
certain levels set by them, so they can tell subscribers to transfer money using a text
account transactions for everyone in
when their wages reach their account, or message. The mobile banking services,
Bangladesh with a mobile phone and also
when their balance reaches a lower level, as which use the GCASH payment platform
plans to enable the bank's customers to
well as access up-to-the minute balances and developed under RBAP's Micro-enterprise
receive money transfers.
mini statements on the go. To use the mobile Access to Banking Services (MABS)
banking service, customers should register by
SK signs agreement for Shenzhen programme, will be made available to more
logging into Alliance & Leicester internet than 500 rural bank branches and their
telecom, smartcard projects
banking, or visiting the Monilink website or by clients. Since 1997, the MABS programme
China - South Korean operator SK Group
texting A-L to 82428 to register via their has been working with rural banks to help
has signed a memorandum of understanding
mobile phone. them develop the capability to provide
with China's National Development and
Reform Commission and Shenzhen city in financial services to the micro-enterprise
Tracktech unveils credit card sector. The MABS programme receives
Guangdong to cooperate on
transaction app for BlackBerry support from the United States Agency for
telecommunication projects, writes the
United Kingdom - UK mobile technology firm International Development and is jointly
Chosun Ilbo. Under the deal, SK will
Tracktech has launched eMerit, an implemented with RBAP, with oversight from
participate in China's high-tech project to
application that enables UK-based users to the Office of the President through the
create a new city incorporating Shenzhen,
process credit card transactions using their Mindanao Economic Development Council.
Hong Kong and Macau. The main focus will
BlackBerry smartphones. The application is Through the MABS Program, GXI and RBAP
be on developing and utilising new
available to residential or corporate have been working together since early 2005
technologies in IT, new and renewable
customers who are connected through the to develop and launch MPBS that offer clients
energy and bio sectors. SK will help develop
BlackBerry Internet Service or BlackBerry of rural banks access to complete banking
technologies for radio-frequency identification
Enterprise Server, with no pre-arranged transactions which include making micro-loan
and advanced telecommunication; boost
Merchant Banking Services set-up required. payments (Text-A-Payment or TAP), paying
China's technology industry; and establish a
eMerit is designed to process payment by bills (Text-A-BillPayment or TAB), making
smartcard payment system.
any credit card, and a bespoke transaction- deposits (Text-A-Deposit or TAD) and
processing module can also be deployed to

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

withdrawals (Text-A -Withdrawal or TAW), First Data showcases contactless services and of Multos, the company that
sending or receiving domestic or international payment tech at DNC operates the remote activation service and
remittances (Text-A-Remittance or TAR), and United States - Electronic and mobile high-security facility that is at the center of the
disbursing and receiving salaries (Text-A- payments services provider First Data will Multos security architecture. Gemalto is
Sweldo or TAS), using only their mobile introduce a new payment technology to paying AUD 25.7 million for Keycorp's
phones through GCASH. thousands of media and delegates attending smartcard business assets, IP portfolio,
the Democratic National Convention (DNC), trademarks and Multos. The assets acquired
which will take place in Denver's Pepsi include Keycorp's implementation of the
North America Center between 25 August and 28 August. highly secure Multos smart card operating
First Data will offer attendees limited edition system, the Multos brand, the associated
MPoria launches entry-level m- payment devices built with the First Data GO- patents and the Key Management Authority
(KMA) that manages Multos card activations
commerce service for retailers Tag contactless payment technology. With
these pins, users can purchase refreshments worldwide. Approximately 40 Multos experts
United States - M-commerce services
up to USD 10 in value at participating Pepsi will join Gemalto, mostly based in Australia
provider mPoria has launched GoMobile! Lite
Center concession stands. The pins can be and UK. The acquisition will contribute over
(GMLite), a new version of its Go Mobile! m-
attached to personal items like mobile phones EUR 15 million of annual revenues to the
commerce service designed for the large and
or employee badges, wristbands and novelty Secure Transactions and Government
underserved segment of small retailers. The
key chains. First Data says consumers will Programs segments of Gemalto on an annual
GoMobile! Lite enables small retailers to
experience the technology first as a basis, with over half of the revenues coming
launch their own m-commerce shopping site
contactless sticker, like the GO-Tag Solution, from Asia.
and enter the USD 500 million US m-
commerce market. The GMLite features the and then directly inside their mobile phones.
Safaricom signs M-Pesa deal with
core services of mPoria's GoMobile! service
Pesa Point
including online wizard-guided site set-up
Kenya - Kenyan mobile operator Safaricom
process; site launch and click-to-call World has signed an agreement with ATM service
purchasing capabilities. The benefits of
provider PesaPoint to allow the mobile firm's
GMLite for small retailers include low-cost Telstra, NAB, Visa start customers to withdraw money using their
entry into mobile commerce market; added contactless m-payments trial mobile number without the use of an ATM
marketing vehicle and customer touch point; Australia - Australian telecommunications card. 'M-Pesa customers can now enjoy
additional revenue stream; brand awareness company Telstra, National Australian Bank faster processing of withdrawals at more than
and increased customer loyalty and and Visa have launched a contactless mobile 110 PesaPoint ATMs in 46 towns around the
automated and non-technical set-up process. phone payments trial with a group of country,' Safaricom CEO Michael Joseph told
The benefits of GMLite for consumers include consumers and participating merchants at a media briefing. The service will be available
access to their favourite products and brands Melbourne's Docklands. The technology is to M-Pesa registered customers at PesaPoint
via any mobile device; convenient browsing provided by Telstra and it allows consumers ATMs 24 hours a day, seven days a week,
and product search; secure product purchase participating in the trial to remotely download 365 days per year. M-Pesa registered
via any mobile device and immediate updates their NAB Visa credit card software customers will use their Safaricom phone to
on sales and promotions. GMLite is available application onto their Telstra mobile phone withdraw between KES 200 and KES 20,000
for USD 9.99 per month with a one-time USD SIM card, enabling them to purchase goods from a PesaPoint ATM.
19.99 set-up charge. and services by waving their mobile phone
over a participating NAB merchant's reader. Safaricom, Vodafone test money
CardinalCommerce powers Fox Consumers will be able to make low value
m-commerce site transfer service to UK
transactions under AUD 35. Telstra Group Kenya - Kenyan mobile service provider
United States - Twentieth Century Fox Home Managing Director Enterprise and Safaricom is testing electronic money-transfer
Entertainment (TCFHE) has launched the Government, David Thodey said that in the services to the UK and is expected to
FoxStore Mobile, a new mobile commerce future, Telstra may be able to provide commercially launch the services soon. The
site. Site visitors can search, find and buy customers with the ability to selectively add firm's Michael Joseph told a media briefing
their favourite Fox filmed entertainment cards or accounts to their mobile phone when that the M-Pesa trial service, allows people in
available on DVD and Blu-ray Disc from a they choose. The trial, involving 200 those countries to send money using mobile
mobile device. FoxStore Mobile is an participants and 12 merchants in the phones. 'We would like to launch an
extension of, TCFHE's official Docklands area of Melbourne, will run over international money transfer particularly for
online retail store. The site's mobile the coming months. Melbourne Docklands is Kenyans living abroad in the US and UK,'
commerce functionality is powered by a waterfront development in the heart of Joseph said. The trials are being carried out
CardinalCommerce, being hosted on the Melbourne comprising 200 hectares of land by Safaricom's partner Vodafone UK after
company's mobile platform Cardinal Max. and water and 7 km of waterfront. testing proved successful in Kenya, where
Additionally, to promote FoxStore Mobile, Fox
the service is in use by more than 3 million
has rolled out a text-to-buy DVD and Blu-ray Gemalto completes acquisition of customers.
Disc with the release of urban crime thriller Multos for AUD 25.7 mln
Street Kings, featuring performances by Australia - Global digital security services Kenya's power firm plans mobile
Keanu Reeves and Forest Whitaker. provider Gemalto has completed the bill payments
acquisition of Keycorp's smart card business, Kenya - The Kenya Power and Lighting
the fabless provider of Multos roducts and Company said it is in consultation with mobile

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

service providers Safaricom and Zain Kenya increase in customers taking up this option. mobile operators, banks, and other service
to introduce a short message service to "We believe that the Cellphone Banking businesses to send money to people living
inform customers of impending electricity channel is a natural extension that will enable abroad and recharge their mobile prepaid
supply interruptions. The firm's MD Joseph customers to pay their traffic fines effortlessly. accounts via SMS, the internet or point of
Njoroge also said electricity users in future Payments of traffic fines on Cellphone sales. Service users can open their accounts
will be able to pay their bills through various Banking are currently free of bank fees," said remotely, save money into their accounts,
systems developed by mobile phone FNB. buy top-up cards, pay utility bills, send money
operators such as the M-Pesa and Sokotele to friends and relatives, withdraw cash at
platforms of Safaricom and Zain respectively. Visa launches new mobile agents' locations or ATMs, get access to
payments initiatives credit and make investments. Transfer To
Safaricom ends July with 3.3 mln World - Visa is launching four new mobile currently provides global airtime transfer
M-Pesa users payments initiatives through its Visa mobile services targeting migrant subscribers,
Kenya - Kenya's mobile phone operator platform in Brazil, South Korea, along with including foreign workers, travellers and
Safaricom added 870,000 new mobile two mobile offers and transaction notification expatriates. The service is designed to
subscribers in the first quarter of the fiscal pilots in the US. Visa teamed with Banco do enable prepaid customers to send back home
year to reach 11.1 million by the end of June. Brasil's Visa cardholders to pay with their small amounts of values or to reload their
The money transfer service M-Pesa has also mobile device and confirm the transaction via own account while roaming. The minimum
continued growing, and the registered user text message. The service is accessible international credit transfer amount is USD 1,
base increased 50 percent over the quarter through any Brazilian mobile carrier. In and all transfers are done instantly via SMS.
from 2 million at 31 March. New registrations another programme launched in South Korea, Paybox's Mobiliser portfolio targets m-
continue to exceed an average of 10,000 per Visa has partnered with T-Money provider commerce, mobile top-up and mobile money
day and by the end of July the total registered KSCC (Korea Smart Card Company), card related opportunities for mobile operators and
user base exceeded 3.3 million. Total person- issuer Shinhan Bank and Korea Telecom financial service providers in developed as
to-person transfers reached KES 6.88 billion Freetel (KTF) to allow commuters to top up well as emerging markets.
in July, representing a growth rate of 220 their T-Money balances automatically on the
percent over the March figure. The total value phone's SIM card when it falls below a certain Mobile payments transaction
of all transactions during July exceeded KES level. In the US, it has partnered with Chase value to jump ten-fold by 2013
21 billion, and the average transaction per Bank for a pilot programme to deliver World - Digital and physical goods purchases
user has continued to increase over the last 6 personalised mobile offers to selected made via mobile devices, contactless NFC
months. consumers in Phoenix, Arizona. More than 50 transactions and money transfers will
merchants are participating in the programme together generate transactions worth over
which has the capacity to provide offers such USD 600 billion globally by 2013, according
as discounts or special deals via SMS to to a report by Juniper Research. The report
5,000 participants. Users will be able to shows that the mobile market today is
redeem these offers at the merchant's dominated by digital goods purchases such
location or online. The pilot will also cover as ringtones, music, games and infotainment.
Movistar, Iusacell team with special game day offers for baseball fans However, contactless NFC, mobile money
banks for m-payments attending games at Chase Field, home of the transfer and physical goods purchases via
Mexico - Mexican mobile operators Movistar Arizona Diamondbacks. Visa is also working mobile devices are the three market
and Iusacell are teaming up with banks such with PNC Bank, SunTrust Bank, U.S. Bank, segments expected to come with major
as Citigroup and BBVA to launch a mobile Wachovia, and Wells Fargo in the US, and growth opportunities for the future. The report
payments service. The service is marketed RBC, TD Bank Financial Group, and Vancity also forecasts that the global annual gross
first toward technology-savvy teenagers, and in Canada, to trial an e-mail and SMS alerts transaction value will rise over 10 times
it is expected to debut over the next few service which notifies participating between 2008 and 2013. The increased
months, Reuters reported from a press cardholders every time a transaction related growth rate of the global mobile subscriber
conference on the launch. Mobile phone to their bank account occurs. The service is base is expected to bring in excess of 1
users will be able to make payments to designed to provide cardholders with an billion new users by 2013. Additionally, the
participating stores, restaurants and taxis by effective way to monitor and manage their top 3 regions for mobile payments, Far East
sending a text message. Latin American accounts. & China, Western Europe and North America
mobile giant America Movil's Telcel, which will account for over 70 percent of the global
accounts for more than two-thirds of Mexico's Paybox, Transfer To unveil mobile money transfer gross transaction
mobile telephones, has yet to sign up for the mobile top-up, remittance service value by 2013.
service. World - Mobile payment services provider
Paybox and global airtime transfer service launches mobile
FNB customers to pay traffic Transfer To have teamed up to integrate their biometric authentication app
fines via mobile phones portfolio of top-up and remittance services via World - Swiss biometric authentication
South Africa - South Africa's First National mobile, online and POS channels. The developer has unveiled its new
Bank's (FNB) customers who are registered partnership blends Paybox's mobile top-up mobile biometry process called
for mobile phone banking can now pay their and mobile money transfer services with MobiComBiom (Mobile Communication
traffic fines using the service. The traffic fines Transfer To's worldwide access to mobile Biometrics). MobiComBiom is an
payment system on FNB ATMs was launched operators' prepaid top-up systems. The amplification of the company's ComBiom
in 2005 and since then has seen a significant initiative aims to enable end customers of product, which is a software application

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

providing a multimodal simultaneous number of high-profile clients, including Virgin

biometric authentication process. During this Mobile, Sky, BT and MasterCard. The
process, biometric face recognition, voice company also has a large number of proven
recognition, lip movement recognition and business partnerships.
word recognition are carried out
simultaneously. The process of
MobiComBiom starts when a specific "soft
button" on the mobile phone is pushed (e.g.
number 1 and 3 simultaneously). Four
randomly generated numbers then appear on
the display and, similar to video phoning, the
user speaks the numbers. Subsequently, the
video and audio data are saved and
transferred to the provider to be compared
with reference data. Once verified, the user
will receive a 2D barcode which can be used
at a point of sales, for example.
believes its authentication process is
especially useful for mobile services such as
mobile banking or mobile payments.

G&D's NFC SIMs interoperable

with Venyon's TSM services
World - Provider of smart cards and system
applications Giesecke & Devrient (G&D) and
over the air provider Venyon, a joint venture
of G&D and Nokia, reveal that the
interoperability tests between the companies'
two components have been successful. Tests
between G&D's NFC-enabled ProxSIM cards
and Venyon's TSM services confirmed that
both components comply with the necessary
industry standards, such as those of the
European Telecommunications Standards
Institute, Global Platform and JavaCard.
Trusted Service Manager (TSM) provided by
Venyon enables mobile operators and service
providers to issue their applications and
services on NFC-enabled mobile phones via
the mobile network. G&D and Venyon are
currently taking part in several NFC pilot
projects, including ones in Turkey and the

Glue4 Technologies rebrands as

World - Technology innovations company
Glue4 Technologies has rebranded as
Proxama. The rebrand marks the company's
success in helping consumer-facing
organisations get more from smart cards,
NFC, mobile phones, the web and interactive
TV. Founder and CEO of Glue4 Technologies
Neil Garner explained that the company
wanted a brand that would better express the
firm's expertise and the work it does. Glue4
chose Proxama as it has resonance in the
market, particularly in relation to services the
company creates in contactless payments
and ticketing, loyalty and service discovery.
Proxama makes its formal entry into the
consumer technologies market with a growing

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

Company Index
America Movil ........................................... 7 Korea Telecom Freetel ............................. 7 Telekom Malaysia .....................................5
Banglalink ................................................. 5 KTF .......................................................... 7 Telstra .......................................................6 ............................................ 7 Luupay...................................................... 4 The Phone House Germany ......................4
BT............................................................. 8 MediaEdge ............................................... 4 T-Mobile ....................................................4
CardinalCommerce ................................... 6 Mobile World............................................. 4 T-Mobile Austria ........................................4
China Mobile............................................. 5 Movistar.................................................... 7 Tracktech ..................................................5
China Mobile Peoples Telephone.............. 5 mPoria...................................................... 6 Transfer To................................................7
First Data .................................................. 6 Nokia .....................................................5, 8 Venyon......................................................8
FNB .......................................................... 7 O2 ............................................................ 4 Virgin Mobile .............................................8
Gemalto .................................................... 6 ONE ......................................................... 4 Vodafone...................................................6
Giesecke & Devrient ................................. 8 Parkmobile................................................ 4 Vodafone UK.............................................6
Globe Telecom.......................................... 5 Proxama ................................................... 8 Yellowbrick ................................................4
Glue4 Technologies .................................. 8 Safaricom ..............................................6, 7 Zain ...........................................................7
Go......................................................... 5, 6 SK Group.................................................. 5 Zain Kenya ................................................7
G-Xchange................................................ 5 Sociedad Anonima Espanola de Tarjetas de
Inside Contactless..................................... 4 Identificacion y Credito .......................... 4
Jersey Telecom......................................... 4 Telcel........................................................ 7

Near Field Communication World European Network Forensic And Prepaid Commerce Europe
Asia 2008 Security Conference December 1, 2008 - Stockholm - Sweden,
September 10, 2008 - Singapore - October 15, 2008 - Heerlen - Netherlands, Terrapinn
Singapore, Terrapinn Conference Agency Maastricht
Next generation payments 2008
Mobile Payments World Asia 2008 Futurecom 2008 December 16, 2008 - Amsterdam -
September 10, 2008 - Singapore - October 27, 2008 - Sao Paulo - Brazil, Netherlands, IIR
Singapore, Terrapinn Provisuale
Near Field Communications World
Risk Management, Fraud and Mobile Money Transfer 2008 Europe 2009
Internal Audit in Telecoms November 10, 2008 - Dubai - United Arab April 14, 2009 - London - United Kingdom,
September 24, 2008 - Brussels - Belgium, Emirates, Clarion Events Ltd. Terrapinn
ViB Events
IT & Banking
November 18, 2008 - Amsterdam -
Netherlands, Euroforum

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Mobile Payments Update
Vol. 2, Week 36, 21 August - 04 September 2008

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