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

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

The benefits and opportunities seem clear for all parties involved. with mobile devices slowly morphing into multi-media and multi-application devices. They also provide the possibility of reducing cash and cost effectively servicing under-banked geographies. They also hold the possibilities of allowing for diversification into other areas of the consumer’s needs and lifestyle and reducing churn amongst existing customers. Remote mobile payments provide another channel for merchants and as such are an attractive proposition if the use of the channel can gain wide scale adoption at lower costs than existing channels. For merchants. next to the wallet and keys it is the object that is most likely to be constantly with the consumer.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. i. For Mobile Network Operators. . there was similar activity at the turn of the millennium when there were also predictions of aggressive growths in mobile payments. For financial institutions mobile payments are a potential method for protecting the current account and surrounding loan products and avoiding further disintermediation from customers. the mobile phone has achieved ‘permanent share of pocket’. However. consumers are increasingly more comfortable with the mobile phone fulfilling more than one function. 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. From the perspective of the end consumer.e. Furthermore. 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. 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. For those who remember. 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. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer.

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

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

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

Part 1 Market analysis .

pag?Src=RSS&docid=165875378 2 3 . 80 70 Market size in billion USD 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mobile Monday prediction Juniper prediction Juniper actuals 2003-2007 Figure 1-1: The mobile payment market proves to be quite elusive. there was similar activity at the turn of the millennium. In 2009. At that time there were also predictions of aggressive growths in mobile payments. in 2006 the same sources predicted the market to reach only €10 billion by 20101. however this growth did not materialise. Mobile payments have in fact largely remained an undelivered promise for more than a decade.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.net/news/mobile-payment-market-to-reach-eur-55-billion-in-2006 www. 1 www.marketwire.mobilemonday. one source predicted that in 2013 an absurd $800 billion2 would be transacted by phone while another source predicted a much more conservative $1. For those who remember.1 Introduction to this report 1.html www. However.frost. In 2002 market experts forecast that by 2006 €55 billion would be processed through mobile payments.com/press-release/Xcellink-International-Inc-1031269.com/prod/servlet/press-release. The reality is that market size and growth fall far short of most predictions and that growth is anything but given.5 billion for the United States alone3.

extra payment related revenues and through associated increases in air time and data use. 1.16 While the attraction of mobile payments is widely recognised. 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 For financial institutions (FIs) For financial institutions4 mobile payments are first and foremost a defensive play.Mobile payments 2010 .3 For technology providers As with any technology led development. there are some key development areas that must be given attention. 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. financial institutions are primarily focused on protecting the current account and surrounding loan products.2.2 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. 1. From a retail banking point of view. 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. 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. Furthermore in developing geographies mobile payments offer financial institutions the opportunity to cost-effectively capture and service non and under-banked communities.2 The attraction of mobile payments 1.2.2. These areas for attention suggest caution amidst the current excitement around mobile payments. 4 See glossary for definition of ‘financial institution’ and other payments terms . mobile payments hold the most promise for technology vendors and systems integrators. 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. Financial institutions are keen to avoid the further worsening of this situation through third party mobile payments.

Industry professionals cannot come to an agreement on the exact definition of a mobile payment. with mobile devices slowly morphing into multi-media and multi-application devices.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.6 For consumers From the perspective of the end consumer. i. 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. there are many ways in the market to define what a mobile payment is and almost as many ways of categorising mobile payments. 1.17 . However. does this mean that end consumers are ready to abandon the wallet and rely primarily on the phone. There is often confusion and overlap between mobile payments. The following are the key trends and developments for 2010: 1. mobile banking. which is more a lifestyle or leisure tool. This lack of coherent definitions and mutually shared categorisations across the industry is one of the factors .e. Furthermore. 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. consumers are increasingly more comfortable with the mobile phone fulfilling more than one function.2.2.Introduction to this report 1.5 For merchants For merchants. the mobile phone has achieved ‘permanent share of pocket’. 1.3. However un-manned or remote Point of Sale locations could benefit from mobile payment by allowing a reduction in servicing costs.2. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means).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. 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. Point of Sale mobile payments could provide faster throughput at the checkout and the ability to send real time marketing messages to the consumer.1 Towards a clearer definition of mobile payments Today.

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. 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. . Mobile payments are an innovation.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. 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. 1.3 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. standardisation and contributing to the creation of a lot of unnecessary noise around mobile payments.3. Without a clear and widely agreed definition and taxonomy it is difficult to envisage the rapid and consistent growth of this business.18 limiting cooperation. 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 looks at the payment behaviour of the various actors in a transaction. 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.Mobile payments 2010 .3. 1. 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. Introduction of innovations into markets of embedded incumbents requires careful consideration of the behavioural aspects of adoption of innovations. This reasoning may prove to be false.

There have been and continue to be several attempts at standardisation. 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. 1.19 .4 Lessons. premium SMS). For example several African countries make use of mobile payments for peer to peer remittance and to reach the un-banked. Why has such cooperation between these stakeholders been so difficult to achieve so far? In section 6 the current barriers to cooperation are examined.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.Introduction to this report 1. 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. trends and issues from analysis of global initiatives There are a number of mobile payment pilots and initiatives in motion around the world today.3. Similarly standardisation is considered to be essential to the long term survival and growth of mobile payments. 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. Section 6 of this report describes the importance of standardisation for mobile payments and looks at some of the current attempts and their status. .3.g. 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. Europe is actively experimenting with Point of Sale NFC payments.

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. e. and the use of the mobile phone to simply order goods or receive delivery (while paying by other means). These are: — Mobile order – transactions where the mobile phone is used simply to initiate the order (but not to make the payment). In section 3 of this report. professionals across these industries have not yet come to a clear and mutually agreed definition and classification of mobile payments. mobile banking. Additionally a simple classification of mobile payments by location and funding method is offered.2 Towards a clearer definition of mobile payment Mobile payments are a hot topic in financial. telecommunication and technology circles right now. 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.g. However. 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. . There are four main areas for the use of a mobile phone in the context of a financial transaction. 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. In this section a proposal is made to view payments separately from other functions that can be performed with the mobile device. — — — — In our definition initiating a payment such as a bank transfer while within the bank’s provided mobile banking environment would not be classified as a mobile payment but for the sake of simplicity would remain simply a feature of mobile banking. This lack of agreement and specifically the bundling of payments with other processes such as ordering and delivery creates confusion and slows the development in this field. an event ticket (but not to make the payment). Mobile banking – access to banking functionality (query + transaction) via the mobile phone. There is often confusion and overlap between a mobile payment. 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. 2.transactions where the mobile phone is used simply to receive delivery of goods or services. Mobile delivery .

receive delivery or authenticate the consumer. only a subset involve actual payment with the mobile. The large majority of applications simply use the mobile phone to initiate the order.Towards a clearer definition of mobile payment The implication of our proposed definitions is as follows: Payments made within the confines of the bank provided mobile banking environment can be effectively removed from the detailed discussion around mobile payments. 2D ticket or reservation code) No No No No No Yes No No No Yes No No No No No No No Yes No Mobile payment No Mobile delivery No Mobile authentication No Mobile banking Yes . 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. Such payments can be discussed separately as attributes or features of mobile banking.g. Of the current applications of the mobile phone in a transaction.21 .

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

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

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

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

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

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

e. those behaviour changes entail costs. What businesses don’t take into account.Mobile payments 2010 .2. consumers will not adopt it. 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. it’s not enough for a new product to be better. This is depicted in the matrix below which plots behavioural change demanded from the consumer with the product change inherent in the innovation. Furthermore people tend to display a second psychological bias. psychological bias called status quo bias: people irrationally overvalue benefits they currently possess relative to those they don’t. i.28 3.2 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. Therefore. As companies know. however. New products often require consumers to change their behaviour.3 The psychological costs of changing Many products fail because of a universal. consumers incur: — — — Transaction costs. . In the case of new payment methods for example.2. 3. but largely ignored. are the psychological costs associated with behaviour change. such as activation fees. unless the benefits (of the new product) far outweigh the losses (from not using the existing product). 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. loss aversion. The less change demanded the less impact is likely from these two psychological biases in the innovation being accepted. they are more upset at losing a benefit than they are delighted at gaining a similar benefit. 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.

these entail little product changes but significant behavioural changes.2. 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. 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.4 Easy sells At the top left of the matrix are the ‘easy sells’.29 .In which situations could mobile payment be successful? Figure 3-2: Classification of innovations along behaviour change and product change axes. This is the reason why in countries where credit cards were already a popular payment instrument offline. 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. The promise of WAP was to bring the familiar online interface to which a consumer was . product modification is low. Credit cards are a payment instrument that was never meant or designed for use online.e. i. Furthermore. 3. 3. These payment methods use online banking processes and authentication mechanisms to authorize a payment. Examples from the realm of online payments are credit cards. 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. 3. they have also become a popular payment instrument online. However the product. with little to no modification can be used online.5 Smash hits At the top right of the matrix there are the ‘smash hits’.2.6 Sure failures At the bottom left of the matrix are the ‘sure failures’. The original online banking product is modified considerably at its interfaces to serve this function so the product changes are high.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.

these entail significant product changes and significant behavioural changes. loyalty points and marketing messages and can check their balance and transaction history directly from their payment device. However where it has been successful its introduction has been invariably accompanied by . while the product changes are high. 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. 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. where the benefits such as. A classic example of this has been the introduction of online banking over the last 10-15 years. 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. The product change or additional benefit to the consumer was low. cards etc can not deliver. Needless to say WAP did not achieve much success. the behavioural changes are also high for a consumer in moving from cash/cards to their phone as the payment device.g. 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. Furthermore the consumer can receive sales receipts.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. An example in this category is NFC enabled mobile payments at the point of sale. low cost of processing even for small transaction amounts. The product changes are considerable. e. The Netherlands. cash. Online banking as an innovation has involved significant behavioural change compared to visiting a physical branch.2. in most NFC pilots. to the mobile phone. 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.7 Long hauls At the bottom right of the matrix are the ‘long hauls’. 3. However.30 accustomed. 3. they were accessing the same online functionality on their phones however the behavioural change was quite high as consumers had to contend with slow speeds due to low bandwidth on their phones and to navigating with the small keyboards on their phones. All functionality that existing Point of Sale payment devices. etc). 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.g.2.Mobile payments 2010 . Finland.

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

Eager NFC-based payments initiatives increasingly rely on NFC-stickers. In this context it is critical to understand the nature and limits of these technologies. However. 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.5 centimetres (3 inches) in most instances. etc. 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. — Radio frequency identification or RFID is a well known application of contactless using both vicinity and proximity technology. In this section first the developments in contactless technologies are reviewed and the recent changes that have spawned the NFC phenomena are examined. Proximity. 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. thereby circumnavigating phone manufacturers. the restriction of RFID has always been that it is a one way communication standard. this technology has a much smaller read distance. this technology offers a maximum read distance of 1 to 1.1 Developments in contactless technology Contactless technology has been around for a while and it is used regularly in our daily lives. passports. usually about 7. . RFID is used extensively in areas such as product tracking. 4. from the code to the reader. libraries. animal identification. For example.5 meters (3 to 5 feet). The small read distance leads this technology to be used in many day to day applications such as the office access cards. It is likely to be other non payment applications that will first result in wide scale use of NFC technology. Finally two popular technologies for remote payment applications are examined. It will be the compatibility with these non payment NFC applications that will determine and pave the road to the success of NFC payments.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. Contactless technology can be divided into two categories: — Vicinity. SMS and NFC. 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. It is shown that the commercial availability of NFC phones remains limited.

it can be said that NFC is a more advanced and preferable technology for payments than Bluetooth as it offers faster connection between devices. less chance of interference. 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. Sagem released the Sagem My 700X NFC in 2007. At the time of writing of this report there is still only one NFC enabled phone commercially available on the market: the Nokia 6212. has a shorter range than that makes it more secure for use in crowded places.2 (Non-)availability of NFC enabled phones The market for NFC enabled phones is still in an early stage of development. NFC is often compared to Bluetooth. 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. called Samsung X700 NFC. faster data transfer speed and increased data security have made contactless technology ripe for use in payments. Without going into too much of the technical details. Samsung and Philips presented an NFC enabled phone at the GSM 2006 conference in Barcelona. The standard was called Near Field Communication or NFC and while this standard was available throughout the 1990’s it was only acknowledged by the ISO organisation in 2003 and from that moment became an open standard for two way contactless communications. 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.Recent technical developments and implications This restriction was resolved in the 1990’s by Philips and Sony. this technology only offers its full potential when used with an interactive device such as a mobile phone. but this phone is still not commercially available7.33 . 4. The two companies jointly developed a standard for two way contactless communication. The critical developments of two way communications.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfc-phone-at-3gsm/ . 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. because of the interactive communication opportunities offered by the two way capabilities of NFC. but demand for this mobile phone was disappointing. Nokia expects the 6212 to be available at the start of 2010. Several of the mobile phone manufacturers are currently providing prototype 7 http://mobilementalism. Other NFC phones have been created8 but only for NFC trials and are not yet commercially available9.

php?id=45 www. 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.34 NFC-enabled mobile phones for trials by mobile operators with plans to provide commercial versions of the phones in 200910.com/news/communications/0. In order to pay using these stickers.39044192.zdnetasia. however.pdf www. GSMA already indicated that ‘the design of new mobile handsets for NFC mobile devices is a key point that needs to be considered.00.Mobile payments 2010 .62031790.at/index. consumers need to hold their mobile device close to a reader.com/documents/pbm/gsma_pbm_white_paper_11_2007. This. This rapid uptake has yet to materialise.nfc-research.htm www.gsmworld. In early 2007.11 The diffusion of NFC-enabled phones has been subject of many speculations.gsmworld.com/documents/nfc_services_0207. Many established market research firms like ABI Research and Juniper have marketed reports predicting a rapid uptake in shipment of NFC-phones. 8 www. 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.3 Circumventing NFC-phones While waiting for NFC handsets to become available. An NFC-sticker is a sticker equipped with advanced radio frequency technology (RFID). the deal could well make sure that NFC is being built into mass market handsets for under USD 1. 4. According to the participants. It transmits card information to the merchant's terminal via NFC technology.pdf 9 10 11 . NFC-stickers may be a stopgap solution.

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. The sticker cuts telcos and mobile phone manufacturers out of the loop. but also on his wallet or credit card. The Paypers/Telecompaper . This sticker however is not strictly related to mobile payment: the consumer can decide to put the sticker on his mobile phone. Turkish Garanti Bank and American Citi bank have introduced their own plans for mobile payments. Listed below are the key non payment applications of NFC: — Mobile ticketing: the NFC device acts as an access token. This allows the customer to use their phones to make low-value purchases with PayPass – without the need for handsets that support NFC. that offers the PayPas service.Recent technical developments and implications MasterCard. has decided it cannot afford to wait for NFC handsets to become available. sees this approach as a bridge to fully integrated contactless m-payments services using NFC technology. 4. Turkish Garanti Bank. 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). Issue 16. Already in Q2 2008.12 In a separate move. The stickers measure about one-quarter the size of a standard bank credit or debit card. which launched Europe’s largest contactless payment card trial with its Bonus PayPass credit card. US-based mobile commerce company Mobile Candy Dish for instance. 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. making the bank the only institution to handle mobile payment transactions. circumventing mobile network operators and mobile phone manufacturers altogether. 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.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.35 . for example to control access to a computer network — — 12 Mobile Payments Update vol. it announced to make use of NFC-enabled stickers. 2.

5 NFC Security issues From a users’ perspective.5. 4.Mobile payments 2010 . loyalty and smart advertisement that are believed to provide the most compatibility with payments. it is easier and probably more rewarding to target a different part of the NFC payment process. some of the security issues for NFCbased mobile payments are described in this section. This implies that the fraudster should have access to the mobile phone for a certain period of time. — — — It is the first three applications in this list. the perceived lack of security of NFC technology is an inhibitor for adoption. In this mode.pdf . the target device (phone) may draw its operating power from 13 www. 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. Collin Mulliner13 states that the weakest link in the chain is the passive NFC tag.5. Attacks on the NFC payment process can be divided in three categories – parallel to the NFC process: 4. In order to distinguish fact from fiction.org/nfc/feed/collin_mulliner_25c3_attacking_nfc_phones.mulliner. searching.1 devices with NFC support will be as easy as bringing them close together and accepting the pairing. Also. As the number of applications for the NFC-phone is still quite limited. this method is not deemed to be rewarding. The process of activating Bluetooth on both sides.1 Attacking the reader Attacking the reader means modifying someone’s mobile telephone and the NFC reader in it. 4. pairing and authorization will be replaced by a simple ‘touch’ of the mobile phones. waiting.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 2.2 Attacking the tag In a landmark study of the Fraunhofer Institute SIT. mobile ticketing.

he identified that the NFC tags on machines B. Mulliner gives some examples: A smart poster could include a tag set to deliver a free phone number to a user’s handset. Mulliner found out that especially the passive communication mode is vulnerable to attacks. even if the phone’s battery is flat. This is bad news. the victim can see what the tag intends to do with the phone. "The Nokia 6212 . 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. the item bought would be dispensed from machine A — straight into the waiting hands of the fraudster.Recent technical developments and implications the tag’s electromagnetic field. took them seriously and responded promptly. Both tag and phone need a power supply. for instance. Only after tapping. that when an NFC handset owner interacts with a tag on a movie poster or tourist information map. he revealed at 253C. 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. whenever anyone made a purchase at any of those machines. 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.37 . instead of the tag performing the expected operation it would instead do whatever the fraudster had set it up to do. Mulliner then presented his findings to Nokia who. The replaced tag cannot be identified as such by someone who wants to tap his NFC phone on it. enabling the NFC-payment to take place. The result. for example. he says. visiting Vienna and Frankfurt to look at both transit ticketing and vending machine applications. are exchanged using passive communication mode. 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. C and D could be replaced with tags that point to vending machine A. This means. Mulliner then took a look at how this all might work in the field. is that many of the issues uncovered during the initial testing have now been fixed — but there are still issues. since the majority of messages exchanged via NFC. A smart poster could include a tag set to deliver a freephone number to a user's handset. The active communication mode: both initiator (tag) and target (phone) communicate by alternately generating their own field. In a group of four vending machines. This could be replaced with a tag set to deliver a premium rate number belonging to the fraudster instead. Then. 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.

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

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

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

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

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

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

Trusted Services Manager: enables the service provider to use the Secure Element. 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). SMS and NFC. mobile devices are becoming increasingly like laptop computers in terms of the functionality they offer. Secure Element Issuer: personalizes the chip with the Secure Element. The continuation of these two trends implies that in the near future. Paysa in India. 4. Mobipay in Spain. many of which would be settled via payment systems based on the platform. which would be an enabler for Point of Sale payments. Future developments could lead to real time online banking with your mobile phone. These trends will provide a positive impetus to the development of mobile payments.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.10 Emerging ecosystem for Point of Sale NFC mobile payments 4. there will be little difference between our mobile devices and our laptop computers. 4.9 Increased broadband and the merging of channels High speed broadband internet is increasingly available on mobile devices. for example payments. mPay in Poland and SEP in Bulgaria. 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. In parallel. at least in terms of functionality.10. 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. Handset manufacturer: produces mobile devices that support the use of Secure Elements. Service provider: offers services for end users. authentication etc.44 USSD is the base of some payment methods such as SharEpay in South Africa. — — — — — . Mobile Network Operators: provides the infrastructure for communication in remote applications.Mobile payments 2010 .

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

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

mobile Point of Sales (POS). The mobile payment services are based on different techniques like Near Field Communication (NFC). a comparatively high mobile adoption and a push by the operators to offer mobile payments like mobile POS and mobile ticketing. mobile ticketing.5 Lessons. which are underserved by the banking industry. 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. In developing countries. Mobile payment services include mobile parking. In some Asian countries there is a low internet penetration. and mobile remittance. trends and issues from analysis of global pilots and initiatives 5. Figure 5-1: Geographical dispersion of mobile payment initiatives The mobile payment services offered differ per region.1 Mobile payments The mobile payment market is very fragmented with many different payment services and payment technologies. the focus remains on mobile money transfer via SMS. In Western Europe the situation is different again as . since the last publication of the report in November 2008 we have seen a strong increase in the number of mobile remittance services across the world and especially in the USA. SMS or mobile internet. However.

This is especially the case for NFC mobile payment methods. Many mobile payment initiatives are still in a pilot stage.51 . 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. Of the listed initiatives in chapter 7.Lessons. The next section provides more details of the examples listed below. Examples . 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. but currently many NFC based mobile payment services are being tested.

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

53 .4 Mobile POS Paybox (Austria) offers mobile POS payments (e. Each participant of the trial received a Nokia 6131 NFC-enabled handset. As per mid 2009. The Rabobank (Netherlands) is the first Western European bank that has launched its own mobile virtual network operator (MVNO) service. 5. a . Touch&Travel is not an example of a mobile payment initiative according to the definition used in this report. TranSys. Barclaycard. in this case Oyster and Barclaycard in virtual form and with NFC functionality. the handset will hold various everyday cards. Customers can top up their Oyster by touching their handset on Oyster ticket machines in tube stations or at Oyster ticket stops. 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). ticketing for public transport.Lessons. Visa Europe. Austrian railway operator OBB has teamed up with Paybox Austria. vending machines or petrol station). Therefore. In the UK. Rabo Mobiel (2006). 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.g. The length of the journey and the ticket price are calculated at the end of the journey. 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. The OBB mobile ticket can be purchased via SMS or through the Vodafone live! portal. which consists of an Oyster card for paying public transport tickets and a Barclay’s card for Point of Sale payments. and the customer receives a regular statement of journeys made. tickets for (music) events. Mobilkom Austria and ONE to offer customers tickets using their mobile phones. Just like a normal wallet. and remittance (money transfer). a school. including payments in a supermarket (C1000). All post-paid subscribers are automatically enabled for the service. The Austrian mobile operators Mobilkom Austria and ONE are the owners of 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. Paybox has over 5 million customers and is accepted at 20. At this moment customers get a monthly statement with all travel data and an attached invoice. Nokia and AEG started a NFC pilot last November called London Underground mobile ticketing. Rabo Mobiel conducted an NFC trial of mobile contactless payments and is ran 19 different trials of various sizes. All 500 participants have an O2 wallet. All station platforms and bus stops will have 'touch points' installed. 200 test users have the opportunity to try out a service that is scheduled to be introduced nationwide for all rail passengers in 2010. Participants will be able to test travelling on London’s public transport system but also making purchases in retail outlets. Other services that are available through Paybox include mobile parking. strictly speaking. In 2007.000 locations. toll ticketing. Transport for London.

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. NTT DoCoMo formed a joint venture with Sony called FeliCa Networks to develop Sony's contactless card technology.000 member shops and generates 7. DDI Corporation. 5 percent of which were enabled for mobile purchases. and the Bank of Tokyo-Mitsubishi. . Currently 500. Sony Corporation. bottle deposit receipts could also be saved on the phone. LogicaCMG. Through the joint venture. In the Netherlands the NFC Pilot ‘Pay with your mobile phone at C1000’ was conducted in 2007 and 2008. for use in mobile phones. — QUICpay: In July 2004. Services available to Suica card users were made available on FeliCa enabled handsets from end January 2006. Rabobank’s goal is to replace some of today’s cash and debit card payments with one device that could provide all this in a compact package. The 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. At the end of March 2005. or donated to charity. Bitwallet reported that it had issued 9. with the purchase value appearing on the customer's credit card. They then entered a PIN code as usual into the POS reader and the transaction was complete.2 million cards in total. NTT DoCoMo and East Japan Railway Company agreed to jointly promote JR East's Suica and e-money service. KPN and NXP Semiconductors. Toyota Motor Corporation. the credit card issuer.54 fast food restaurant. The deposit could be deducted at the checkout. The pilot was an initiative of RFID Platform Nederland. The initiators want to use the pilot to achieve an NFC technology breakthrough.Mobile payments 2010 . It also stated that the Edy card was usable in 20. mobile payments are very advanced. — Suica: In July 2005. and NTT DoCoMo jointly announced QUICpay payment solution for cards with contactless chips. Customers could pay for their shopping by simply holding a mobile next to a reader at the checkout.1 million transactions per month. credited to a Rabobank account. JCB. NTT DoCoMo has integrated FeliCa contactless technology into mobile phones. The Suica card is a pre-paid ticket that can also be used in some shops to make purchases. Rabobank. and cinema ticketing. AEON Credit Service. In October 2003. enabling owners to access multiple applications which are currently available through separate cards. The Japan Research Institute. During 6 months. vending machines.000 people use the Suica system. Sony Finance International. Denso Corporation. QUICpay can also be used by FeliCa enabled handsets. In Japan. Schuitema (C1000). a joint venture between NTT DoCoMo. Sanwa Bank. Consumers make purchases by waving their handsets across payment terminals. Examples of the separate cards are: — Edy: Edy is a pre-paid electronic money scheme launched in October 2001 by Bitwallet. one hundred customers of the C1000 supermarket in the small town of Molenaarsgraaf could pay for their shopping by means of their mobile phone. In addition to the possibility to pay with the mobile phone. the international payment brand. called FeliCa.

while linking to a bank account is free of charge. 28. it is not linked to the clearing system. a SMS-based payment service targeting the under-banked.10 for sending money and a 2.Lessons. Unlike mobile transaction schemes which add a new channel to existing banking services. The mobile operator. In 2007.5 million subscribers in Kenya conducting 2 million transactions a day. Sending money from the mobile phone can be done through SMS or mobile internet. attract new subscribers. customers can carry out m-transactions and m-payments. They rolled out their own proprietary point of sales infrastructure and even purchased a bank.6% of Osaifu Keitai compatible mobile handset owners are using the Osaifu Keitai function. 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. The common area has been designed for services that require high security such as payment and ticketing. the transfer is conducted by SMS. Obopay charges a fee of USD 0. The full commercial launch was initiated in March 2007. According to Obopay. and offer an innovative. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service that offers financial services to mobile phone users. Within the first 3 months (March 2007-June 2007) there were 111. Safaricom and Vodafone launched M-PESA.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. The rate of early adoption of M-PESA has been very encouraging. M-PESA had 6. and is managed by FeliCa Networks. The agents operate a float of M-PESA value plus a cash float at each outlet. provides the new account holder with a SIM card that enables transactions using an application running in the SIM Tool Kit (STK) environment. pre-paid mobile subscribers in Kenya on a pilot basis in October 2005. .000 registrations and 450 active agent outlets. Mostly. Limiting the transaction network to M-PESA account holders and agents allows MPESA to avoid using a clearing system. M-PESA uses a network of agents. For services to be enabled in this area the service provider needs to make an application to FeliCa Networks.55 . NTT DoComo invested a vast sum in promoting mobile payments.5 percent charge for adding money from a debit or credit card. 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. In 2009. 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. Safaricom. M-PESA’s services are available only to M-PESA account holders and certified agents. As of mid 2009. differentiated service to customers. 5. Through specific M-PESA agents. who in turn allocates space on the FeliCa chip for the application. and also pay cash in and make cash withdrawals. M-PESA is an alternative solution – it is described and understood by the Kenyan regulators as a mobile payments system. the service helps mobile operators drive increased messaging and data traffic.

The M-PESA functionality also extends to depositing and withdrawing money at registered M-PESA agent outlets. The advantage of this approach is that Rabobank is in charge of the ecosystem. 19 Not discussed in this chapter.1 Business models A major driver in the adoption of mobile payment services in general. The relatively low maximum balance is presumably an attempt at limiting the opportunity for money laundering. which are typically Safaricom dealers. Only Safaricom subscribers can send M-PESA payments. independent service provider centric (Obopay US) or collaborative (Mobipay Spain.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. but the recipient need not be a subscriber or even a bank account holder. but may also be other retailers such as petrol stations and supermarkets. M-Pesa Kenya). is the business model that delivers value to all players in the ecosystem. There is no credit facility per se available on M-PESA. with no minimum balance. Many mobile phones in the country are funded by pre-paid cards. which are effectively stored value cards. It can fully control the mobile banking offering. In the Philippines.Mobile payments 2010 .6 Lessons about drivers and barriers 5.000 in their M-PESA account. Bank centric The bank centric approach to mobile banking has been taking by a number of banks. 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. One example is the Rabobank (Netherlands) that launch transactional mobile banking services in 2003.6. Finding that barriers like unclear costs and a poor user experience were deterring potential mobile banking users. 5. A user can have up to KES 50. It can for instance design the tariffs to encourage the use of mobile banking services. It is possible to use the money stored on these cards in many stores. for details see chapter 7 . and charges are levied on a pay-as-you-go basis. Several different business models are possible. each with uncertain outcomes. the bank decided to launch its own mobile virtual network operator (MVNO) service. Rabo Mobiel. in the Netherlands in late 2006. DoCoMo’s OsaifuKeita). Business models can be bank-centric (Rabo Mobiel Netherlands). mobile operator-centric (Paybox by Mobilkom Austria.

including the acquisition of Paybox and the establishment of a bank subsidiary. NTT DoCoMo had about three million mobile wallet users (out of 15 million m-wallet enabled mobile phones) and 1.5 million customers are using NTT DoCoMo’s mobile phone based contactless credit product. The Dutch mobile market is very crowded which makes it difficult for any new entrant to reach a large number of mobile phone customers. SMS is a widely available and well-known mobile service. 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. Also. Recently Mobilkom also introduced Near Field Communication (NFC) as a payment solution for mobile ticketing for public transport. NTT DoCoMo also has an operator centric approach towards mobile banking. established channels like ATMs. and internet banking meet the needs of most customers in most situations. Another disappointment is the relative low number of active mobile banking users. 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 invested a vast sum in promoting mobile payment and they rolled out their own proprietary POS infrastructure. The mobile operators control the mobile service value chain and the payment value chain. it shows the importance of a major role in the ecosystem and using a technology with a wide user acceptance. The Austrian operator has put a lot of money and resources into the mobile payments strategy. 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. Nokia invested in Obopay and began leveraging the Obopay platform for the Nokia Money service . The large uptake of NTT DoCoMo’s mobile payment service is caused by a number of drivers. telephone banking. NTT DoCoMo has a large market share in Japan and can more easily establish a cooperative business model with banks and mobile handset manufacturers.57 . in Western European countries.Lessons. Only 15-20 percent of the Rabo Mobiel customers access mobile banking at least once every three months. These reasons for the slow adoption of mobile banking will also have a negative impact on the adoption of mobile payments. the average mobile user is more likely to be using an advanced mobile network and the up-take of mobile data services is high. Urgent banking transactions simply aren’t common enough to persuade a massmarket audience to sign up for and regularly use mobile banking services. Some of these drivers of mobile payments cannot be translated to the Western European market. In 2007. 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. In 2009. However. The initial mobile payment technology of Paybox is based on SMS. trends and issues from analysis of global pilots and initiatives The acquisition of Rabo Mobiel customers is however slow.

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

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

more effective or carries less risk than other non-cash payments.Mobile payments 2010 . Norway. As mentioned before Orange. . Acceptance by merchants is driven by a large addressable base of customers for the merchants. and the perception that the service is secure. 5.60 enabled mobile phone is commercially available. Sagem. Paying with a mobile phone should add some benefits to end-users and merchants compared to existing payment methods payments. On the one hand there needs to be a large base of consumers with contactless payment devices to provide justification for merchants to add the capability to their Point of Sale (POS) systems. In addition to delivering value to all players of the ecosystem and accepted technologies used. If mobile phones become a core payment device at POS. The PSD also seeks to improve competition by opening up payment markets to new entrants thus fostering greater efficiency and cost-reduction. On the other hand there have to be sufficient merchants accepting contactless payments before consumers choose to adopt the new payment mechanism. mobile payment at the Point of Sale are compelling if it is cheaper. other drivers for uptake of mobile payments are the acceptance by the end users (customers) and the acceptance by merchants. retailers and other service providers. For banks.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. efficient and secure as 'national' payments within a participating nations. After the formal adoption by the Council and the European Parliament and the publication. Introducing NFC mobile payments at POS means an additional investment in infrastructure. Iceland and Liechtenstein. The PSD offers opportunities for those involved in mobile payments. 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. This would dilute banks revenues on mobile payments at a POS. public transport operators. and NEC) are used in pilots. Acceptance by end-users is based on: easy to use service. the provisions of this Directive will need to be implemented by all participating nations by 1 November 2009. sees a business case taking shape in the form of fees it could charge banks. mobile operators could ask for a fee for the use of their SIM “real estate”. and a few mobile phones like (Motorola. This means there should be interoperability across different operators and/or banks. At the same time the Directive provides the necessary legal platform for the Single Euro Payments Area (SEPA). Contactless payment adoption faces the classic chicken and egg problem that any new payment technology faces.

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

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. meaning that the provider of such services does not need a license to continue its business. display of foreign exchange rates before point of acceptance and documented customer receipts and acknowledgements. 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. these include regulations aimed at achieving consistency around terms and conditions.000.100 in fees and approximately 40 man hours for gathering the necessary information. Maximum payment execution time will need to be one day once the PSD is fully in place (31 December 2012). proper internal control mechanisms. data storage.7. Payment institutions .Mobile payments 2010 . directors and managers that are of good repute. data. This rather strict rule will also apply to holders of a full banking license (who also need to comply with PSD). authentication and IT communication providers are not classified as payment institutions and therefore do not need to comply with the PSD. risk management and accounting procedures. 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.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’. 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. Users should be allowed to easily repudiate consent and authorisation. For mobile operators that consider setting up a payments service. These include proving the existence of sound administrative. the expected costs for a license are EUR 3.62 under PSD regulations. The PSD does apply however. 5. This license to operate as a ‘payment institution’ is issued by the national banks of Member States. payment institutions will be required to maintain a certain minimum level of capital. 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. 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). according to DNB. For mobile payments this will be an initial amount of €50. According to the Dutch Central Bank (DNB). the excess in liability lies with the provider. Technical providers to payment institutions such as providers of processing. Fulfilling the ongoing information duty to the central bank will cost approximately 10 hours per year. Capital requirements.

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

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

6. 6. The ability to charge flexibly for different types of services and applications and to split revenues between different parties in the value chain is key to the creation of a successful environment for mobile services. 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. financial institution or mobile network operator. SIM and network by the mobile network operator.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. In a cooperative model.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.1.5 Inability to arrive at a workable revenue sharing model The players of the value chain must agree on basic revenue sharing principles between industries. 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.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. 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. cross and up sell. At the time of writing these two bodies were sharing thoughts on cooperation . 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.1. 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. 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.65 . which would reduce the value of mobile payments for consumers and slow down industry development.1. 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. Key to this approach is the role of the Trusted Services Manager. a role created and defined in the context of NFC payments. to avoid having different industries create different standards. 6.

not specific to any operator or payment scheme. and are critical for ensuring widespread access to mobile payment services. interoperability will become 20 http://europa. Open standards.2.Mobile payments 2010 .2 Standardisation 6. severely limiting the growth of e-invoicing and the potential saving of up to 238 billion Euros. 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). Needless to say continued cooperation between the stakeholders will be critical to the development of mobile payments. Similarly mobile payment pilots are being launched within Europe and around the world using proprietary messaging. 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. operational and governance protocols.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. 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. In Europe within the financial domain payment solutions have been created in the past within geographic islands. 6. cumulative over 2007 . infrastructure.201120. Creation of such islands will invariably lead to slower customer and merchant adoption and the survival of inefficient solutions with higher end user costs. without the use of common Europe wide standards.do?reference=MEMO/08/52&format=HTML&aged=0& language=EN&guiLanguage=en . An example from the financial domain can help to clarify this further. Without mobile payment standards. 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. The SEPA is expected to result in a total saving of €123 billion the European Union.eu/rapid/pressReleasesAction. As these pilots succeed and continue to develop into live applications. 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.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. ensure interoperability across platforms and services.

The fact that the whole value chain is represented in OMA marks a . GSMA and EPC have started a formal relation in 2008 with regard to mobile payments. A number of key handset manufacturers including Nokia. i. 6. There are 52 mobile operators with 1. 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. T-Mobile.e.67 . which was proposed to ETSI as a standard in October 2007 and ratified in February 2008. to link the UICC contained within the mobile handset with the phone's embedded NFC chip. Telefonica and Orange. the mobile payment application is located on the smart card provided by the mobile network operator. device and network suppliers. The GSMA is supportive of the UICC solution.Stakeholder cooperation and standardisation more critical and more costly. Open Mobile Alliance (OMA) OMA was formed in June 2002 by nearly 200 companies including the major mobile operators. 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.2 Standardisation initiatives Simpay Simpay was founded by the mobile operators Vodafone. Motorola and Samsung have joined the GSMA ‘Pay-Buy-Mobile’ initiative and have given support to the payment application residing on the UICC. such as credit and debit payments. 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 2005.2. 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. The NFC chip can communicate with existing contactless payment systems to deliver a wide range of services. The various combinations possible will be described in section 8 of this report. 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.7 billion customers participating in the initiative.

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

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. mobile devices. Encourage the development of products using NFC Forum specifications. Works to ensure that products claiming NFC capabilities comply with NFC Forum specifications. Siemens and TC TrustCenter has plans to demonstrate the deployment of electronic signatures using a ‘mobile signing device’. To generate a mobile signature the user inserted a Smart card into a card slot.2 Crypto SignText implementation in the WAP browser stack. applications developers. Materna. Sema Group.Deutsche Bank. ensuring interoperability among devices and services. Manufacturers. and educating the market about NFC technology.Stakeholder cooperation and standardisation MoSign The MoSign project (short for Mobile Signature) initiated by the companies Deutsche Bank. Microsoft. Ericsson. work together to promote the use of NFC technology in consumer electronics. In March 2001. financial services institutions. NFC Forum The Near Field Communication Forum was formed to advance the use of Near Field Communication technology by developing specifications. A prototype mobile signing device comprised a Siemens IC35 organizer with an integrated WAP browser and a Smart card reader. 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. Commerzbank. Encourages the use of NFC Forum specifications. and PCs. The digital keys were stored on the Smart card and the signing application was based on the WAP 1. Educates consumers and enterprises globally about NFC. Work to ensure that products claiming NFC capabilities comply with NFC Forum specifications.69 . — — — . the NFC Forum: — Develops standards-based specifications that define NFC device architecture and protocols for interoperability. — — — To meet these goals. Educate consumers and enterprises about NFC. four German banks . the Forum now has over 130 members. Formed in 2004.

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. such as payment.Mobile payments 2010 . irrespective of the handset type or manufacturer. on an NFC-enabled mobile device. ticketing. These requirements will include a personalisation infrastructure for payment applications and approval processes for mobile devices supporting contactless proximity payments. StoLPaN’s primary goal is to define a transparent. In the next section potential risks for the breakthrough of mobile payments are discussed. 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. A common methodology will help to reduce the cost of launching new NFC applications by removing the need to develop. In this section it has been proposed that stakeholder cooperation and standardisation are essential to the success of mobile payments. access and loyalty. maintain and enhance the EMV Integrated Circuit Card Specifications to ensure interoperability and acceptance of payment system integrated circuit cards on a worldwide basis. Recognising that important standardisation work has already been undertaken within the industry. The secondary objective is to demonstrate the use of the methodology in the high street. uniform methodology for managing multiple services. . certify and manage multiple versions of the same application. was formed in February 1999 by Europay International. StoLPaN calls itself the NFC mobile services standards consortium. maintain and enhance the EMV Integrated Circuit Card Specifications for Payment Systems. and the support infrastructure used. the implementation of a uniform platform will help create a consistent and convenient user experience across all the NFC services on their mobile handsets. 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. Also some of the mobile payment standardisation initiatives around the world have been described.70 StoLPaN StoLPaN is an abbreviation for Store Logistics and Payments on NFC. For consumers. MasterCard International and Visa International to manage. EMVCo EMVCo LLC. EMVCo intends to bridge the gap between the Near Field Communication (NFC) technical standards. EMVCo's primary role is to manage. The reasons why stakeholder cooperation has been difficult to achieve so far have been explored and the current status of cooperation has been examined.

The newsletter covers all the developments in the global market for mobile payments. globally. www. m-commerce. wherever you are. Their products are created by payment professionals and cover all significant developments in cards and payments. this application syncs and downloads the latest global payments’ news directly to the device. with a special focus on the online payment. mobile payments and e-invoicing industry. and mobile banking services. .com Mobile Payments Update The Mobile Payments Update is created jointly by The Paypers and Telecompaper – their counterpart for the telecom industry. Specifically designed to utilize the features and navigation of the iPhone™. online banking. 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. 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™.thepaypers.

Part 2 Market overview .

There clearly is an accelaration in growth of the number of pilot and initiatives worldwide. and the type of domain. . partners. secure element. Type of service Mobile ticketing Mobile parking Mobile remittance Mobile POS Type of technology SMS WAP/Internet NFC USSD Voice Type of domain M-Payment M-Order M-Banking M-Delivery M-Contract Table 0-1: Classification table of initiatives 21 Please contact us if your initiative is not (or erroneously) listed and provide us with the (correct) data as included in our listing to be included in a next edition. In the table below we have listed the available options. technology used. Per initiative we will give a short description. 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. Per initiative we will also give information (if available) on cost for usage.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. information on type of service.

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

Samba 38 Guatemala – Visa Pay Wave Peru .75 .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 .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 .

7 Kenya .Cooperative Bank of Kenya mobile banking Kenya – M-PESA Kenya .txtNpay Ivory Coast . mobile POS (e.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. remittance (money transfer) Mobile ticketing.g. ticketing for public transport (via WAP or SMS).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 . NAB.Standard Chartered M-Banking Kenya .E-Fulusi Uganda Uganda . toll ticketing.MTN MobileMoney Worldwide – Bank-a-billion 7.1 Europe Paybox Austria www.Mobile payments 2010 .Cellphone Banking Absa Sudan Saraf Mobile Zambia . Mobile POS Type of service .paybox.com Uganda . Mobile parking.CelPay Zimbabwe – Mukuru. Mobile remittance.Zain M-Wallet Sierra Leone . online shoppin. gas station).at – Austria Short description Paybox offers mobile parking (via SMS). vending machines. Visa Africa Cameroon Mobile Money Ghana . tickets for (music events).Orange Money Kenya – Eazy 24.

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

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

Type of service Type of technology Mobile ticketing Users send an SMS to a short code before getting on the bus or tram. M-Delivery. the EUR 0.Ping www. M-Payment None.proximus.Belgium Short description SMS ticketing for the public transport system De Lijn in Antwerp and Ghent. Within a few seconds they receive an SMS with confirmation of their ticket.be – Belgium Short description Belgian MNO Belgacom lauched a mobile payments trial based on NFC-technology in Belgium in March 2009.15 per SMS will probably not cover the costs for retrieving the money from MNOs. It will otherwise cost EUR 1.50 paid for tickets on board the tram. which acts as proof of payment. M-Ordering. Ping. reload can be done via buying credit or upload via an ATM (PIN code). Also.Mobile payment services and pilots Proximus SMS-Pay http://customer. 500 Belgacom .html .20 for the fare plus EUR 0.79 . The costs of the ticket will be deducted from the call credit or will be charged on the mobile phone bill. For buying a transport ticket. no PIN is required. Proximus M-Pay needs to be activated.be/en/sms_Ticketing/index.pingping. As a promotion it's offering the first SMS ticket for free. In the project with Accor Services. Partners Additional information De Lijn For SMS ticketing with the mobile phone. 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. In order to pilot the NFC service which was added to the m-payments service. who typically charge 25-35% of the transacted amount as a fee for collecting the money. which is cheaper than the EUR 1. provider of service vouchers to companies Accor Services and Coca-Cola. Belgacom has partnered with Belgium food retailer Delhaize.15 for the SMS.

running from March – December 2009. Type of service Type of technology Domain Secured through Mobile ticketing. M – Delivery PIN . 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. The NFC transit application will be available for download through the Telefonica O2 network.html . On top of being able to pay for transport rides. trial participants in Pilsen will use their NFC phones to purchase goods at participating retail shops as well as buy tickets for entertainment areas. on top of using the city website.com/osobni/en/home/index.80 employees have been given NFC tags which will be linked to their mobile phone numbers.cz. Retailers: Delahize. Mobile POS NFC M – Payment.Mobile payments 2010 . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M – Payment PIN None MNO: Belgacom. At present. This will enable them to make contactless payments using electronic Ticket Restaurants meal tickets stored in their Ping. Coca-Cola.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.o2.Ping accounts at restaurants equipped with contactless readers. 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.

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

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

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

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

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

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. Other European banks are currently using the platform for their mobile banking portal. 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. transfer money. Type of service Type of technology Mobile ticketing NFC . The ticket will now be stored in the embedded secure element of the NFC. set up standing orders and much more.enabled mobile phone. 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 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. RMV introduced its mobile ticketing scheme in 2006 and is one of the pioneers in this area. and can be inspected just by holding the device close to the inspector’s reading device. users can view their account turnover.86 NetBank Germany Short description The portal is based on Sevenval Mobile Platform and offers a simple interface plus online banking features for all web-enabled mobile devices.netbank.de.Mobile payments 2010 .

It takes deep pockets to continue a service like this with so little prospect of wide-spread adoption. The fee is EUR 6. this pilot comes too soon.0 Handy software.Mobile payment services and pilots Domain Secured through Cost for usage Partners M-Order. Initially. Also ticket inspectors need to carry specially developed devices to check the validity of tickets.de – Germany Short description StarMoney Handy allows financial organisations to provide their own mobile service and free mobile banking access to all online accounts. the service is available through Star Finanz and Kreissparkasse Düsseldorf building society.starmoneyhandy. After a four months Mobile banking WAP M-Payment Partners .00 /month. Additional information The scheme was one of the first to introduce NFC-enabled services. This pilot is far ahead of its time. The market they aim for (travellers) is well-picked. T-Systems. M-Payment Embedded Free during trial The partners for this project are Nokia. Estimates are that in 2011 only 4% of all new phones will be NFC-enabled. traffiQ and the traffic association Frankfurt (RMV). In June 2008. which includes unlimited free phone calls to family and colleagues. 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. With less than 1% of all new mobile phones produced in 2008 being NFC-enabled. M-Delivery.87 . even accounts with different organisations. Nokia and T-Systems partner with independent mobile retailer SMS Michel Communication to market NFC-enabled mobile phones. the service announced to expand the geographical reach of the pilot to all eleven cities served by the RMV.

and the event organiser saves money in printing the tickets. The pilot will also run in a part .at/files/binary/2341. StarMoney Handy is commercially launched by five German Sparkasse banks. Touch&Travel www.shtml . since content is free Free None Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Potential The mobile phone can play a very useful role in mitigating the use of paper entrance tickets. The trial is executed by 200 persons.bahn.000 financial organisations. the fact that tickets can be forwarded to friends and family is an additional advantage.uk/db_uk/view/news/20080301. Additional information Once they have signed a contract.88 pilot.0 Handy software for access to the banking systems of around 4. T-Mobile Streetgigs http://img. customers get the StarMoney Mobile 2.Germany Short description Railway operator Deutsche Bahn and Vodafone Germany cooperate for a mobile ticketing trial that started on 29 February 2008.pdf .pte. The recipient is less likely to forget his ticket. who regularly travel on the ICE route Berlin-Hanover.Mobile payments 2010 . which can be scanned at the concert's location using barcode scanners Mobile ticketing SMS M-Delivery None. one Volksbank and Deutsche Sparkassenverlag.Germany Short description German mobile applications developer Mindmatics has developed the mobile ticketing service for the T-Mobile Street Gigs. a series of pop concerts at unusual locations in Germany.co. Mindmatics has provided T-Mobile with an online-based registration for free SMS tickets for the concert. For free tickets (like these).

Berliner Verkehrsbetriebe.89 . Mobile Wizard). m-commerce. Consumers can confirm the payment process via SMS or web.at/en – Austria. content and NFC payments. With the paybox Mobiliser Products (Money Mobiliser. as well as technology partners Atron electronic. smart card developer Giesecke&Devrient. Type of service Mobile POS . Potential The initiative has assumed that NFC-phones would become widely available in 2010. According to the planning. Initially.Mobile payment services and pilots of Berlin's S-Bahn and in Potsdam's public transport routes. Additional information 12Pay www. Vodafone Germany selected Paybox as the processor to launch a national mobile payment system in Germany. which is aimed at business customers. This is not the case. Vodafone Germany enables their customer to exploit the whole potential of m-commerce for secure payments in the Internet. businesses can enable clients to pay for products and services via their mobile phone bills. Motorola and semiconductor manufacturer NXP. the service is only available in Austria and Germany but Dimoco plans to roll it out in other countries. 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. Germany Short description Austrian mobile payment services provider Dimoco has launched a new m-payment service called 12Pay.dimoco. A technology push product. TopUp Mobiliser. In July 2007. travelers all over Germany can enjoy make use of the service in 2010. Using 12Pay.

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

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

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

93 . MVNO Rabo Mobiel had about 125.rabomobiel. The partner within this scheme is multimedia company Talpa. the NFC initiative has to compete with very efficient incumbent payment infrastructure. Diergaarde Blijdorp (Zoo). Rabo SMS Betalen www. a codeword has to be inserted to confirm the payment. C1000.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. making widespread adoption problematic. which Rabobank is part of. At the end of the process of making a payment. For using Rabo SMS betalen (SMS payment). the Rabo NFC trial suffers from the lack of availability of NFC-enabled phones. After that a confirmation will be sent to both sender and recipient.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).nl . In the roadmap it is the banks vision also to use mobile phones for contactless payments. a customer sends an SMS to a short code to the mobile phone number of the intended recipient of the money and the amount.000 customers for its mobile service in April 2008. 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. Payments are sent over a secured line. Ironically enough.g. Additional information Potential Like all NFC-pilots outside Asia. Type of service Type of technology Domain Mobile remittance SMS M-Payment .: Febo. NFC trial partners e.

05. a trusted third party. established for this purpose and this project.Mobile payments 2010 . Partners Additional information Rabobank The system is based on MiniTix. Both companies own 50% of the stock in TSM Nordic. transferring money from account to ‘ordinary’ bank account costs EUR 0. 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. Of course the sender is charged for the SMS by the MNO. Norway Type of service . Potential The much advertised context for Rabo SMS payment is splitting the bill in a restaurant with friends. it is unlikely that situations like these happen often enough to attract a sufficiently large consumer base. Telenor Norway Short description A cooperation between Norwegian bank DnB Nor and MNO TeleNor to provide contactless payments. after that EUR 0. when typically no one has exact change. Rabo SMS betalen can be used by anyone with a Dutch bank account (not necessarily Rabobank’s) and a Dutch mobile phone number. Loading money into the account and receiving money is free. DnB Nor and TeleNor both launch a separate pilot in Oslo.50.94 Secured through Cost for usage None for sender until 1 January 2009. a system initially launched for micropayments online. Although this is a viable context.

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

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

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

ro/en – Romania Short description BCR bank and Good.98 Potential This NFC pilot suffers from the same drawbacks as similar initiatives: the lack of NFC-enabled phones. customers have to call a Good. transfer money to any bank account in Romania as well manage their bank accounts (change PIN or block card).bee client’s BCR account using a mobile phone number. Good.bee Mobile Transactions offer users access to mobile transactions. transfer money to another good.goodbee. a current account and a Visa Electron debit card Using the debit card.bee www.000 customers in 2009. Good. according to the managing director of good. In order to use the service. balance check: EUR 0. the subscribers must have an account at BCR. Technology: Good. without the need for any application or internet access. The payment infrastructure it is to compete with is not so efficient.35 – 0.bee Romania Sorin Bulai. Romania is likely not to be in the first wave op adoptors. it might stand a slim chance.56. so if ING succeeds in setting up an efficient payment infrastructure. Even if these phones were to become available on a wide scale.bee The company expects some 1. money transfer: EUR 0.21 Financial: BCR and Visa. In order to use these services. users can make purchases in shops displaying the Visa logo.bee Mobile Transactions can be used from any type of mobile phone. top up their or other persons’ mobile phone prepaid accounts.Bee access number. withdraw money from an ATM and check money available in the account. Customers can view information about their BCR accounts.Mobile payments 2010 .14 – EUR 0. Type of service Type of technology Domain Secured through Cost for usage Mobile POS SMS M – Payment PIN Starter kit: RON 26 (EUR 6). The initial Partners Additional information .3 million banking transactions in 2009 and targets 100.

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

Through applications build in the SIM trial participants are able to .com/home_eng.sermepa.htm . users need to wave their NFC-based handsets over NFC terminals to complete a payment process. make credit card payments and pay phone and electricity bills via SMS.shtml .Spain Short description To use the mobile banking service.Mobile payments 2010 . Banamex has 12 million customers in Mexico. Bank: Banamex At present. users are able to select the bank card they wish to use to make payments.telefonica. Using the Virtual Mobile Wallet application which is stored on the mobile phone’s SIM. while Telcel’s subscriber base exceeds 56 million. a figure expected to increase to 9 percent by 2012. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile banking SMS M – Payment PIN and secured SIM Free of charge MNO: TelCel. Telcel’s parent company America Movil forecasts that almost 2.9 percent of its overall mobile user base in Latin America will use mobile banking services by 2010.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. Upon choosing a card. Telcel users are required to change their SIM card with a special card with security settings available at Banamex branches. Telcel subscribers can request account information. By linking the phone number to their Banamex credit card account.es/ingles/index. NFC Telefónica www. 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.100 Banamex SMS Banking www.

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

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

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

ringgo. Switch. VISA. The next time the customer uses the phone RingGo asks for some of the card information.30 on top of the parking fee.but not all . The growth in transaction numbers is: it shows a rapidly growing awareness. 7.000 transactions per month in the most important locality is not that impressive.Mobile payment services and pilots Potential For its niche (low value payments) this solution is not unique but very successful. Cobalt will store some . RingGo mobile www. Delta and Maestro Technology: Cobalt Telephone Technology Additional information In April 2009. RingGo registered 1. A year ago. Cooperation between MNOs adds to trustworthiness. by means of a text message. GBP 0. Type of service Type of technology Domain Secured through Cost for usage Partners Potential .uk – United Kingdom Short description Business process services provider Cobalt introduces RingGo.107 .of the credit card details in a secure data vault. Mastercard. RingGo registered 7. Although the concept is good and user friendly. RingGo seems to have trouble convincing parking authorities to enable people to actually use the service.co.500 transactions/month in Oxford. a system that enables drivers to pay for their parking and top up their parking time by using their debit or credit card over the phone.000 transactions in Oxford alone. The costs to merchants are very high. Mobile ticketing Ringo uses voice calls for the ticketing service M-Payment When the customer first uses RingGo. The system also notifies users when the parking time is due to expire. The service is offered in 20+ localities. of which Oxford is the most important. high margin products. limiting its usefulness to low value.20 – GBP 0.

Mobile Coupons. Bulk Text. MasterCard. which allows users to pay for purchases.co.50 per transaction.co.United Kingdom Short description MoBank is a mobile banking service. Mobile banking WAP/Internet M – Payment 4 – digit PIN Life time membership fee GBP 15 or GBP 0.mobank.uk/mobank/ . Email To SMS and Multimedia Messaging services Type of service Type of technology Mobile ticketing SMS WAP Domain Secured through Cost for usage Partners Additional information Trinity provides Mobile Ticketing services to other parties. The user can register one debit or credit card (Maestro. Mobile Loyalty. SMS To Email. Type of service Type of technology Domain Secured through Cost for usage Mobile POS. 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.Mobile payments 2010 . like for Arriva and YourRail M-Delivery None Free MoBank www.trinitymobile. Mobile ticketing. check balances.uk/template2. . Visa or Visa Debit) to the MoBank account. plus the MNO charges for data traffic while performing a transaction.asp?page=easyticket – United Kingdom Short description Trinity Mobile provides Mobile Tickets.108 Trinity Mobile www.

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

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 . Mobi-tickets are SMS text messages that contain a unique barcode and information about the film time.com/ . screen and seating.com. 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 can also double as vouchers or coupons that enable customers to purchase for food and drinks.everymancinema.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 . The service is specifically aimed at P2P payments.110 7.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.2 North America Everyman Cinema Club mobile ticketing www. Customers have to present their mobitickets at the cinema where it is scanned by staff to allow entry to the film. Users can send everyone (also non-subscribers) money via SMS.

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

New bill payees must be set up in the online banking environment.Mobile payments 2010 . they can pay bills electronically and transfer funds from one account to another within the same bank Payment of bills is possible to existing payees. Activation of the service can only be initiated in the secure mobile banking environment. Arvest Mobile Banking United States Short description After downloading the mobile banking application to their phones. . They have also access to their transaction history. 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. Logging into mobile banking requires a six-digit PIN. they can pay bills electronically and transfer funds from one account to another within the same bank Payment of bills is possible to existing payees. customers are able to see current balance information. AFCU mobile banking is only available for carriers Alltel. AT&T and Verizon Wireless. Logging into mobile banking requires a six-digit PIN.112 They have also access to their transaction history. Activation of the service can only be initiated in the secure mobile banking environment.000 members. 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.

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

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

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. Nextel. T-Mobile. Once the purchase is made. Soon after launch of the service. to which the customer must reply by texting “Y” (for “yes”). At the merchant’s website. 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.United States Short description Boku is a payment method for online purchases.6 billion customers. Sprint. Boku www. US Cellular. Boku acquired competitors MobilCash and Paymo. Boost. 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. Consumers pay the price of a SMS. users click on the "Pay by Mobile" button and enter their phone number as well as their mobile provider.115 . Cellular One. The transaction is thus completed and the charge will be included in the monthly bill.boku. the system sends an SMS asking for confirmation.com . reaching a potential market of 1. AT&T. No registration is required. Partners Additional information . manufacturer. operating system or wireless transmission standard. The service is said to work regardless of carrier. Mobile payments SMS. Verizon and Virgin Mobile.

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

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

Mobile payments 2010 . New bill payees must be set up in the online banking environment. .1 billion-asset regional bank based in Columbus. within its online banking section. of which 50 percent bank online. They have also access to their transaction history. Huntington says its mobile banking service’s success is the effect of a marketing campaign. Payment of bills is possible to existing payees. they can pay bills electronically and transfer funds from one IBC account to another. US. on its ATMs and enclosed marketing material sent with paper statements.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. customers are able to see current balance information.ibc. The service is compatible only with phones on the AT&T and Sprint networks and is provided by mobile financial services provider mFoundry. Activation of the service can only be initiated in the secure mobile banking environment. 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. which includes ads on its home page. After downloading the application to their phones. Huntington has 1 million retail banking customers. The bank reached its eight months target in the first four weeks after the service’s launch. Ohio. Huntington Bank is an USD 56.118 and is about to exceed that by 40 percent in August. IBC Bank www.com/Personal-AccountFeatures. The service is only available for carriers AT&T and Sprint.

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

5% charge for adding money from a debit or credit card. and the money is deducted from his account. the customer gets a mobile receipt. IVR Mobile payment . The customer gets a code back.Mobile payments 2010 . while Mobile remittance SMS.10 for sending money and a 2. but that could keep costs low.obopay. WAP/Internet. he gets an additional targeted promotional message. 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. After the transaction is completed. with an additional targeted promotional message.120 promotional message. 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.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. Putting gift and loyalty cards in a mobile wallet is a good idea from a consumer perspective. Obopay www. The redemption process is a bit complicated though. and gives it to the cashier. The phone is a ‘can’t leave home without’. The customer sends the secure pin and gets a Mocapay code. With that. whereas gift cards are easily forgotten.

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

Mobile payments 2010 .United States. Payment procedure is complicated and far away from any existing payment experience. Ordering is also possible: when a consumer sees an advertisement with a PayPal Mobile logo. M-Order PIN code Private: none Business: 1. the consumer is called back via an automatic voice response system. for receiving payments Partners Additional information PayPal.3. Sprint Nextel PayPal Mobile is available for person to person payments as well as POS-payments. PayPal already has a potential customer base of 150 million users who already have a PayPal account. the item is automatically sent to his address.122 2008. Potential The service seems quite far-fetched. After inserting the PIN. Worldwide Short description The mobile version of the well-known PayPal payment method.4% .paypalmobile.20. After confirmation via PIN. PayPal Mobile www.4% plus GBP 0. the transaction is validated. 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. Automatic Voice Response. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS. the service is more expensive than competing services like Obopay. 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. Potential PayPal Mobile offers the online PayPal proposition to the mobile channel. downloadable application M-Payment.com . For person to person payments. On the other hand. he can send a text message to a number provided in the advertorial. . After every transaction initiation. which asks for the PIN-code.

Dollar amount ($100.Mobile payment services and pilots P2P Cash www.com – United States Short description P2P Cash guarantees transfer of cash to any cellphone worldwide using a Secure Open Standard (SOS). The P2P Cash Secure Open Standard guarantees the transfer of cash between any two cellphones worldwide regardless of the carrier or communication network. Initially. STEP 1: Purchase a prepaid Debit card and load cash at convenience store in U.123 . Type of service Type of technology Mobile remittance WAP/Internet .com/index. Synovus will offer the mobile banking service to a subset of its customer base with a broader rollout planned for later in the year. transfer funds and view and pay bills from one seamless platform via cell phones or other mobile devices. register cell phone and PIN # with P2PCash STEP 2: SEND Tel # of Recipient.p2pcash.S.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. Synovus www..cfm?catid=1&subject=22 – United States Short description Synovus customers will have the ability to check account balances.

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 . make one-time transfers between eligible accounts.wellsfargo. Wells Fargo Mobile www.10_476_12583.wachovia. Wachovia offers two ways to access your accounts from your mobile device: through a mobile application or through an Internet enabled browser. viewing eBills.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. Wachovia Mobile www.00. The service is only available for carriers AT&T and Verizon. make one-time bill payments.com/personal/page/0. 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.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. Activation of the service can only be initiated in the secure mobile banking environment..Mobile payments 2010 .com/mobile/ .

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

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

49 for both For a complete list: http://sizzlemoney. overdraft fee USD 10.zong. The user enters the OTP on the website and confirms the transaction. ATM Withdrawal USD 1.127 . and the amount spent is charged to the phone bill.99. The phone is used as the authorization method. Mobile Banking SMS M – Payment PIN A plethora of fees applies. balance inquiry USD 0.49. Users then receive an SMS which contains a 4-digit one-timepassword (OTP). Mobile Remittance. making deposit USD 0.49.Mobile payment services and pilots product package includes a pin-based debit card for use at ATM’s and at retail establishments. consumers can pay with their mobiles for items such as games. Through merchants using Zong. P2P payment USD 0. and applications for social networks or mobile devices. 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. users click on the logo and enter their phone number. All purchases are added to the user’s mobile phone bill or deducted from the pre-paid credit. To make a purchase from an online merchant. SizzleMoney provides you with full mobile access to money and payment services.com/termscond/fees. avatars.pdf Partners Additional information Technology: Denarii Payments Zong http://www. virtual world goods. .com/zong – United States Short description Zong is a mobile payment method especially designed to pay online. Monthly fee of USD 0.99.00.

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

Is has been optimised for the phone's Web browser so one can bank anywhere the phone goes.129 . Zala is an application that uses the large Blackberry display and trackball navigation.azuremedia.chase.Mobile payment services and pilots Partners Additional information ViVOtech and Eagle Eye Solutions Chase Mobile www. replenishment amounts and reimbursements. Zala is designed to help corporate finance administrators to adjust ‘the controls’ on a Zala account including spending limits.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. restrictions.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). enabling person-to-person transactions on a unified communication platform.com/index. Zala 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.

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

jsp Argentina Short description Banco Francs provides its online banking customers with an additional channel to do their banking business: the mobile phone. Customers have to enrol to this service via their mobile banking account.Mobile payment services and pilots information 7. an Argentine e-bank.com/tlal/jsp/ar/esp/individu/servicios/bancamovil/index. enrolment is not possible. for making transfers ARS 0. The system is based on text messaging and users can check their balances.03). Type of service Type of technology Domain Secured through Cost for usage Mobile remittance SMS M-Banking.07). Banco Francès.30 (EUR 0. Without such an account.bancofrances.131 . Movistar Argentina The service was launched in February 2007 Partners Additional information Banco Galicia Mobile Banking www.e-galicia. monitor the progress of cheque processing. offers it’s customers the possibility to do online banking business via their mobile phone.Argentina Short description Banco Galicia.com/portal/site/eGalicia/menuitem. pay bills and transfers between accounts of Argentine banks. First. M-Payment PIN Receiving alerts: ARS: 0.ac8b11d3a58b347fbdcfd986122011ca . This must be done in the customers’ online banking environment (after logging in). .14 (EUR 0. make transfers between own accounts.3 Latin America Banco Francès Mobile Banking www. both excluding taxes. consumers have to subscribe to the service by attaching their mobile phone to their online bank account. A link to an application will be sent to the registered phone.

Movistar. customers can access mobile banking via an 8 digit password on their mobile phone application. receiving SMS is free.com. both incoming and outgoing Río SMS cost ARP 0. sending an SMS costs ARP 0.jsp . Mobile remittance SMS M-Banking. M-Payment Username/password (8 digits) None. By sending a text message. one needs an online banking account at Santander Río bank and a cellphone capable of sending and receiving text messages. money transfers and check the balance of their account(s).Mobile payments 2010 . Partners Additional information Banca Galicia.15 (EUR 0.132 along with an 8-digit password.04).Argentina Short description The SMS banking service permits customers to manage their bank account via their mobile phone.35 (EUR 0. M-Payment Username/password (8 digits) Depends on the mobile network operator. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance Internet M-Banking. America Movil The service was launched in 2006 Banco Río www. Personal The service was launched in 2006 Type of service Type of technology Domain Secured through Cost for usage . extra service to online banking customers Banca Galicia.09) excluding taxes. For mobile banking. For Personal customers.ar/individuos/canales_mobilebanking_ppal_1. For Movistar customers. customers can make payments.santanderrio. After downloading the link.

In November 2006.133 .novaoi. WAP. Currently.com. 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). BrasPag Type of service Type of technology Domain Secured through Cost for usage Partners .000 HSBC account holders use the service but M-Cash management expects it to account for 3% of all electronic transactions by 2009.00) on the months he/she utilises the service. Mobile remittance. The technology offers automatic debit from the client's current account. Mobile operator Oi.Mobile payment services and pilots M-Cash http://mcash. Client does not pay annual fee but the client does pay BRL 2. CDMA and TDMA for mobile telecommunications and SMS.99 (EUR 1. with no additional cost and is compatible with a wide range of standards including GSM. Mobile POS SMS M-Payment A personal password is used to authorise the transaction. HSBC bank launched in Brazil a service called M-Cash.br – Brasil Short description M-Cash enables clients to purchase products in retail stores with the mobile phone or through the Internet.br – Brazil Short description Oi Paggo is a credit system that allows clients to shop through their cell phones via SMS. There is no SMS cost and the short messages sent for the transactions do not consume pre-paid cell credits.com. Additional information Oi Paggo www. processor. USSD and IP/XML for data applications. approximately 10.

Type of service Type of technology Mobile POS SMS .134 Paggo.Brazil Short description Brazilian company Samba38 Tecnologia e Servicos offers an SMSbased service which allows consumers to top-up prepaid mobile phone accounts as well as make mobile payments. The service was developed by Brazilian company Alimutu Technologies Management .com . a mobile operator in Brazil.Mobile payments 2010 .000 merchants also accept this means of payment. the customer receives a small credit directly available in Samba38 credits which can be used via a mobile telephone to make payments. there is a definite need for the service in Brazil. Point of sales that accept Samba38 payments can use their Samba38 credits to pay other bills along the purchase/distribution chain. Oi Paggo had 1 million customers using the service at some 40. In order to gain access to the mobile payment service.000 to 7. creating a perfectly feasible market for the service.samba38. Samba 38 www. The service will be used by wireless operators in Brazil covering over 60 percent of the mobile payments market. The service offers prizes to frequent users. The service signs up about 6. This service is made possible through business agreements with Samba38's financial partners. in association with Paggo. The fact that more than 40.000 merchants. a small technology company. If the application is approved. Potential Although the monthly fee seems high. customers can apply for the Samba38 debit or credit card Private Label Samba38 (mobile phone and plastic). is almost unprecedented. In April this year. Mobile remittance is a service especially used by unbanked people. the company that operates the payment system Additional information Oi Paggo was launched in February 2006 by Oi.000 customers each day. Many of Brazil’s 200 million inhabitants are unbanked.

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

Once registered.Venezuela Short description Venezuelan start-up company Diemo has teamed with provider of service to MVNOs XIUS-bcgi.com/english/index. With the application.html .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. Diemo is short for Dinero en Movemiento (Money on the move). . make money transfers and withdrawals using their Diemo wallet. a division of Megasoft. to confirm the purchase has been charged to the Visa card. 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.diemo. subscribers can pay bills. Visanet then sends a SMS to the buyer's and the seller's mobile phones. to launch mobile banking with GSM network provider Digitel. users can pay by calling the *98 short number and typing in the unique code and amount of the purchase. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Movistar.Mobile payments 2010 .mann-india. Subscribers need to download an application onto their mobile telephone. Visanet Mobile payments Call Mobile POS Diemo www.

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

A bank transfer to send money home is therefore out of the question.138 Additional information M-Paisa will be used by organisations such as Afghanistan's The First MicroFinanceBank and FINCA a global microfinance institutions. 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. the M-Paisa service has a very narrow scope. Potential SMART MTC Bahrain Short description Bahra and Smart work in partnership with MTC Vodafone Bahrain and a leading bank in the Middle East. MasterCard The initiative was announced in February 2007 Filipino migrant workers in Bahrain typically do not have a bank account in Bahrain. MTC Vodafone. As part of the GSMA program. Smart also sees the need for a global hub that will be interoperable with the Smart Services Hub. as for the most part. SSL Wireless Bangladesh Short description SSL SMS Banking is a service that enables Bank's customers to . Through the Smart Services Hub.Mobile payments 2010 . Although the use of the mobile phone for financial services becomes increasingly popular in third world. Mobile money transfer therefore is a good alternative. Smart plans to launch a pilot project with MasterCard as an authorisation. clearing and settlement partner. they are paid out in cash. Filipino migrants and contract workers can remit funds back to the Philippines using their mobile phones. Also the illiteracy rate in Afghanistan can constitute a problem.

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

but nevertheless have important financial service needs.chinaunionpay. Customers can use the WING Cash Xpress to cash in or cash out as well as to purchase goods and services. EasiRemit. EasiRemit will be launched with four CUP member banks namely Bank of Shanghai. 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. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS. 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. 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.Mobile payments 2010 .140 based on SMS technology. Fujian Rural Credit Union and Hunan Rural Credit Union. Dongguan Rural Credit Cooperatives Union. The beneficiary also enjoys the convenience of having the money credited immediately to his bank account in China. Mobile banking SMS M – Payment 4 – digit PIN EasiRemit www. WING is targeting those Cambodian customers who are generally un-banked.

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

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

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

jsp?lang=0&id=0. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance. Airtel and State Bank of India pilot a project in the Himalayan village of Pithoragarh. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M-Banking PIN Not disclosed Airtel. might very well be a bridge too far.691 – India Short description In the process of providing banking facilities in un-banked regions of India. this pilot was turned into a national roll-out.com/viewsection.Mobile payments 2010 .000 touch points. Oxicash plans to distribute these services to Oxigen’s pan-India retail network of approximately 50. 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. Potential State Bank of India mobile banking http://www. but at the POS.statebankofindia.21.144 transaction details and amount. In June 2008. Mobile POS SMS M-Payment User PIN Free for consumer. mobile payments in a country that has not yet gotten used to cards. State Bank of India.000 by 2010. 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. merchant charges not disclosed Oxigen The service started in July 2008. The customer will .1. which is expected to expand to 250.

the new service enables users to book tickets and pay for mobile top-ups. not disclosed Bank: Yesbank.145 .in . 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.India Short description Pay Anyone is a cooperation between Yes Bank and American Obopay. On top of money transfers. 25. At present. which gives Yes Bank customers the possibility to send money only between Yes Bank accounts through Obopay’s mobile payment service. should he/she desire to continue to avail the services from the State Bank of India. 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 payment services and pilots have to re-register for the service following the registration process explained above. the bank offers its clients a mobile payment service called 'Person to Person'.00 (EUR 100) within an overall calendar month limit of Rs. among others.000. The . Yes Bank currently has 5. Mobile Remittance SMS M – Payment Username and password Free during trial – remittances against a fee. 5000. (EUR 500) Pay Anyone www. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. The upper ceiling per transaction limit shall be Rs.000 customers who are using the bank’s mobile payment services throughout the country.00.yesbank.

citibank.Mobile payments 2010 . The service is free of charge. 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. M-Delivery Embedded Openi Bank: Citigroup Citibank M-Banking India www.online. pay bills and make requests.co. Mobile ticketing NFC M – Payment.India Short description The Citibank M-Banking India solution allows customers to view account details. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile POS.in . transfer funds.146 trial started in April 2009. The application can be downloaded by sending an SMS. Citi Mobile works with the customers’ 16-digit debit/credit card number and existing IPIN. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking WAP/Internet M – Payment PIN None Bank: Citigroup . the customer needs a javaenabled mobile phone with a GPRS connection. To use Citi Mobile banking service.

After that.in – India. The service is available for customers of 14 banks in India. Upon registration.paymate. pay for movie and flight tickets and make person-to-person money transfers. 14 banks in India Additional information The transaction limit is IRS 2. monthly utility bills. The system can also be used to pay bills. ID card or a key to the home. the end user receives a call back from an automated IVR. point totals. FeliCa Mobile www. which is used to authorise transactions. credit card. . Nepal: Nepal Telecom Banks: Bank of Ceylon (Sri Lanka). requesting a PIN. flight & movie tickets. pay for retail purchases.nttdocomo. the user gets a confirmation SMS which completes the purchase.Mobile payment services and pilots PayMate India www. Paymate plans to add P2P remittance to the service.co. Users can check their credit balance. PayMate can be used with online and offline merchants. Nepal. The service can be used to pay online as well as to pay at 13.000 merchants on the Indian subcontinent. he will receive a fourdigit PIN. Sri Lanka Short description Indian mobile payments provider PayMate enables its clients to send and receive money. 1 bank in Sri Lanka and 1 in Nepal. Via PayBill’s SMS-based service.147 . Everest Bank (Nepal). After initiating a transaction.com – Japan Short description The Osaifu mobile phone can be used as a wallet. After a successful PIN entry. subscribers are able to pay utility bills. and purchase history on the mobile phone screen. 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. a consumer has to link his PayMate account to a bank account or credit card.000 (EUR 30).

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

Users will be able to make payments to the accounts of anyone in their mobile phone’s address book. credit card services and insurance offerings. and Softbank). and membership verification. NTT DoCoMo.7 billion) in deposits. In June 2008.149 . meaning 'New Bank'). and phone (IVR/operator) banking. such as the purchase of train tickets and commuter passes. 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.Mobile payment services and pilots information exceeded 10 million on November 25 2007. internet. users can check out information related to 'Osaifu Keitai'. 'EZ FeliCa' is a service that can be used in a variety of situations. and 3. or as e-money. KDDI will actively continue to expand services for 'EZ FeliCa' to meet the diverse needs of customers.5 trillion (EUR 10. and conduct location-based searches for shops which provide the 'Osaifu Keitai' service. In the future. The New Bank (Shinginko in Japanese.4 million in the fifth year as well as JPY 1. 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. The company has been accepting applications since August 2008.4 million account holders by the third year. offers a full line-up of financial services oriented to individual Partners Additional information . At 'EZ FeliCa site'. the service will include foreign currency deposits. Type of service Type of technology Domain Secured through Cost for usage Mobile remittance WAP/Internet M-Banking. credit cards. KDDI telecom The aim is to reach 2. as well as shop online with their handsets. 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.

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

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

500 outlets and 160. aimed at a tech-savvy nation. to reap the speed and convenience benefits offered by contactless payments. Visa Launched April 2006 A large-scale NFC initiative. OneSMART PayPass Malaysia Short description OneSMART MasterCard PayPass is the industry’s first internationally accepted contactless EMV payment solution. Singapore. Mobile Visa Wave payment in Malaysia combines NFC (near field communications) with Visa Wave contactless card technologies. Also. merchant: credit card charge Maybank.152 Visa Wave is EMV-based and uses the strongest EMV authentication . Maxis Communications. which amounts to 2. . Japan. OneSMART PayPass provides Malaysians with a fast and convenient way to pay for their small everyday purchases.for all transactions. This enhances adoption. building on the existing contactless platform. enabling regions where EMV smart cards predominate. South Korea and Taiwan play a far greater role in every-day life than in Europe and North America.Mobile payments 2010 . in Malaysia. 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. PayPass allows cardholders to “tap & go” at merchant outlets around the world that are equipped with PayPass readers.dynamic data authentication (DDA) . Malaysians (at least those living in Kuala Lumpur) are already used to NFC cards for they use it in public transport of the capital.000 cards. Mobile phones in countries like Malaysia. PayPass combines both contact and contactless interfaces on one chip. such as the Asia/Pacific.

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

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

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

Once connected to the Western Union service. RheSmart money cars can used as a debit card to pay for goods and services at retials hsops and restaurants or to make withdrawals from ATM’s. Loading physical cash onto the SMART Money account can be done at SMART’s m-banking partner Banco de Oro branches.156 Partners Additional information None G-Cash was introduced by Globe Telecom in October 2004. The service allows users to transfer cash from one Smart Money card to another. The functionality allows a user to deposit cash. SMART Wireless Centres or SMART Padala outlets. also abroad.000 (EUR 800) Mobiel phone company Smart and MasterCard Type of service Type of technology Domain Secured through Cost for usage Partners Additional information . Mobile remittance SMS M-Payment PIN 1% of transacted amount with a cap of PHP 50. donations and online purchases via texting. from that ‘cash’ account or other bank accounts.Mobile payments 2010 . 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. withdraw cash or top up the phone’s prepaid credit levels. operators will be able to use their own mobile wallet software to enable person-to-person mobile money transfers over Western Union's cross-border remittance network. The customer can also transfer prepaid credit or cash to another user. 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. 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.

157 . internet banking.Mobile payment services and pilots Smart bank service Saudi Arabia Short description The Quick Pay Remittance Service is NCB's remittance offering which will utilise Smart Money as the beneficiary account for funds sent to the Philippines. 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. 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. 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. over-the-counter transactions at NCB branches and fund transfers via the bank's ATMs. 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 . remittance centres.

000 participants use their phones like electronic wallets. each one equipped with ViVOpay 5000 NETS FlashPay contactless terminals. UOB. coupon delivery and redemption. kicked off October 2007. About 20. It saw 1. Network for Electronic Transfers Singapore (NETS) and United Overseas Bank (UOB) have launched an NFC mobile phone payment trial in Singapore. Type of service Type of technology Domain Secured through Cost for usage Partners Additional Mobile POS NFC M-Payment PIN Not disclosed SingTel.000 ez-link machines can read these special made-inSingapore phones. including NFC mobile payment wallet. Users are able to make payments using NETS FlashPay by flashing their SingTel mobile phones at more than 500 participating merchants in Singapore. 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.singtel. Over-the-Air (OTA) payment. The companies utilise technologies provided by US company ViVOtech.Singapore Short description Mobile operator Singapore Telecommunications (SingTel). SingTel www. . 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. 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.com . NETS. VivoTech The service was launched in September 2008.Mobile payments 2010 . which are loaned to the trial users for six months.158 Partners Additional information StarHub and EZ-link This launch of one of the largest public trials of such mobile payment technology.

Singapore’s government announced plans to create an agency to regulate mobile payments services. Participants in the trial have been given NFC-based mobile phones. 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. M1 Mobile Payments http://m1. which are embedded with a computer chip that contains their credit card details.com/sg/M1site/M1Corp . The service allows users to open a coupon on their NFC-enabled phones and flash it to a NETS FlashPay reader for automatic redemption. Visa In February. . It will also make sure mobile payments systems are compatible with similar systems which will be rolled out in future. The authority is due to ensure the security of all sensitive financial information being transmitted wirelessly. 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: M1.159 . Three hundred Citibank Visa cardholders which are also M1's subscribers take part in the trial.Singapore Short description Citibank Singapore. which started 1 April. Financial: Citibank Singapore.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. The SingTel wall also comes equipped with an electronic coupon application that provides SingTel customers discounts and other incentives and freebies. Visa and Singaporean mobile operator MobileOne (M1) launched a three month NFC m-payments trial.

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

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

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

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

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

Visanet The service was launched in October 2008 Kasikornbank Visa trial https://ebank. 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).com/kcyber/login. the Visa payWave platform offers over-the-air personalisation.Thailand Short description Visa and Thai Bank Kasikornbank participate in a mobile payments trial using Nokia's 6212 NFC-enabled handhelds in Thailand.kasikornbank. 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.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. This will allow Kasikornbank customers participating in the trial to make purchases at more than 1. Purchases will be charged directly to the customer’s Kasikornbank Visa credit card account. Nokia .165 .000 payWave merchant locations in Thailand. Kasikornbank. Industrial Bank. The Visa payWave-enabled transactions are protected with the same security layers used for all Visa transactions. On top of contactless payments. merchant pays an unknown fee Uno Bank.html . The service enables bank users to upload their Visa accounts onto the Nokia 6212 handset which contains Visa’s payWave contactless application. coupons and direct marketing.

Interbank Card Center) is planning a January launch for a year-long pilot of an independent near-field communication (NFC) infrastructure. 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. BKM will act as the Trusted Services Provider. 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 . A contactless MasterCard PayPass credit card application is stored on the SIM card as a secure element.166 information Bankararasi Kart Merkezi Turkey Short description Turkey's national card switch and clearing centre BKM (Bankalararasi Kart Merkezi . Type of service Type of technology Domain Secured through Cost for usage Partners Mobile POS NFC M-Payment SIM Unknown. but the first to aim at interoperability between different banks and different mobile network operators.Mobile payments 2010 . 2008 a Near Field Communication (NFC) trial for mobile payments. with nine banks and two of the country's three mobile operators already on board.

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

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

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

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

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

check their bank balance. but there are plans to expand abroad).textnpay. and purchase goods and services. WAP/Internet M – Payment 5 digit PIN Next to MNO-dependent SMS and data exchange charges. fees apply for opening an account as well as making a transaction. Zenith Bank. and only available upon opening an account in Ghana. pay bills. Brand owner: Africaxpress Financial.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. Kasapa. Customers fund the wallet by buying txtNpay electronic cash at a partner outlet or making a transfer from their bank account.Mobile payments 2010 . MTN Partners . The txtNpay wallet is an electronic stored value account. Type of service Type of technology Domain Secured through Cost for usage Mobile Remittance SMS. txtNpay works with any mobile phone and mobile operator in Ghana. Every transaction is secured with a 5-digit PIN.172 Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile remittance SMS M – Payment Identification at cashing point Not disclosed yet Express Union Cameroon txtNpay www. First Atlantic Merchant Bank. The exact fees are not disclosed. Tigo. ADB Bank MNO. buy pre-paid airtime. OneTouch.

For a complete overview of fees: www.000 XOF for withdrawals/transfers up to XOF 100. Type of service Type of technology Domain Secured through Cost for usage The deposit of money has no fees attached to it. Mobile banking.orange.ci/omoney – Côte d’Ivoire Short description Orange Money is a pre-paid wallet.000. make person-to-person money transfers.which is activated for free without requiring any minimum deposit. costs are 200 XOF for withdrawals/transfers up to XOF 2. To withdraw money and transfer money. while BNP Paribas’ Ivory Coast subsidiary BICICI is in charge of issuing and guaranteeing the electronic money. Orange customers can deposit and withdraw up to XOF 100. Orange Ivory Coast handles the services’ platform and marketing. Mobile remittance SMS M – Banking & M – Payment . customers have to open an Orange Money account at a accredited Orange agent. P2P money transfers into Ghana are already available.000 (EUR 15. Mali and Senegal are the first to follow. top-up their airtime credit with up to XOF 10.ci/omoney/cashinout.173 .orange.24) and pay bills.000 to 3. Orange Money www.000 (EUR 152) from the Orange Money account.Mobile payment services and pilots Additional information TextNpay plans on making international P2P money transfers out of Ghana available to consumers in due time. Users do not need bank accounts to subscribe to the service. managed on the mobile telephone.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. In order to use the service.

The infrastructure of this initiative is based upon the M-PESA infrastructure. Equity Bank Kenya has 2.00) Partners Additional information Safaricom (Vodafone) Launched in September 2008. Customers can also top up their mobile phone with the new Equi-sms banking Top up Service.Kenya Short description Sms Banking allows customers to access limited services via the mobile phone.equitybank. . individuals. 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.Small business owners.50 – EUR 2.50) Transfer from EBK account to other bank’s account: KES 150-200 (EUR 1. non-account holders looking for convenient access to their bank account.co.6 million customers who have 4.174 Eazzy 24/7 www.Mobile payments 2010 . Via Eazzy 24/7. account holders. The target group is any of the clients with a phone who are looking for convenient banking .ke/ . Safaricom (owned by Vodafone) is partner in both the M-PESA initiative and in this Eazzy 24/7 initiative.5 million accounts countrywide.

Through M-PESA a user can deposit or withdraw money.000 customers as subscribers. make utility payments and receive automatic salary alerts when cash enters their accounts.co-opbank.safaricom. buy Safaricom prepaid airtime and manage the M-PESA account. purchase air time. Since its inception in 2004.ke/Main-Site/Home/Personal-Banking/Electronic-Banking/MobileBanking.175 . request for mini statements. and today counts in excess of 200.co.Mobile payment services and pilots Cooperative Bank of Kenya mobile banking www.Kenya Short description Safricom offers an SMS-based payment and money transfer service based on SMS and pre-paid accounts. Safricom announced an extension of the service with UK-Kenya remittances in cooperation with Western Union.– Kenya Short description M-Banking is an SMS-based telephone banking service developed to allow our customers enquire their bank account balances. 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. This product allows you greater accessibility and convenience in running your account by bringing all these services at your finger tips.co. M-Banking has become very popular with customers. In December 2008.ke/m-pesa . Type of service Mobile remittance . transfer money to another M-PESA customer or send money to a non M-PESA customer.

allowing Kenyans overseas to send money home quickly and much more cost effectively than most alternative means. Sending money to a non-M-PESA person costs between KES 75 (EUR 0.Mobile payments 2010 . A user can have up to KES 50. The receiver gets a text message that can be taken to a re-seller agent and cashed in. 2007 in Kenya by Vodafone's Kenyan subsidiary Safaricom. Only Safaricom subscribers can send money by M-PESA.000 (EUR 354).04) for a transfer between KES 100 and KES 35.176 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. enabling person-to-person money transfer instantly over large distances. and can only be used inside Kenya. on any network. or for topping up airtime. M-PESA was launched in February. Partners MNO: Safaricom.000.01) and KES 35. Bank: Citigroup. Once registered. Withdrawing cash costs between KES 25 (EUR 0.30) for a transfer between KES 100 (EUR 1. and charges are levied on a pay-as-you-go basis. 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. but the recipient need not be a subscriber or a bank account holder.000.000 (EUR 504) in their M-PESA account. Sending money to an M-PESA user costs KES 30 (EUR 0.25) and KES 170 (EUR 1. Additional information . It is aimed at mobile customers that do not have a bank account. download or withdraw cash at Safaricoms re-seller airtime distribution agents.76) and KES 400 (EUR 4. a customer can send funds to any other phone number.72) with the size of the withdrawal varying between KES 100 and KES 35. with no minimum balance. Customers can also use their MPesa account balance to buy goods and services. for international remittances: Western Union.

Bank: Standard Chartered Zain M-Wallet www. Currently.com/muse/obj/portal. view a mini bank statement for their last 3 transactions. enquire on FX rates.177 . 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 pilot project will replace Sokotele. top-up their mobile phone balance and request a cheque book.com/ke/personal-banking/electronic-banking/m-banking/en/ Kenya. the bank’s customers have to physically register with the bank. mBanking is based on the Unstructured Supplementary Service Data (USSD) standard for transmitting information over GSM signaling channels.zain. transfer funds between personal accounts and nominated accounts. change their PIN. Tanzania. Zain.splash – Kenya.standardchartered. Zain’s previous money transfer service which was in operation in several East African . The service was also lauched in Tanzania in February 2009. the service is only available to the Safaricom and Zain subscribers.Mobile payment services and pilots Standard Chartered M-Banking www. Tanzania and Uganda. Uganda Short description Mobile operator Zain partners with international banks including Citigroup and Standard Chartered Bank to launch its Zap mbanking in Kenya. pay utility bills. Tanzania Short description The service allows bank customers to check their bank balance. request bank statements. In order to use the service.

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

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

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

30 (EUR 0.Mobile payment services and pilots POC it www. is faster than SMS and allows for real time interactive communications between customer cellphones and the SWAP system.co. SWAP Mobile is has wallet functionality.01) Request payment: ZAR 0. Users can add funds to their wallet with an electronic fund transfer.10 (EUR 0. Recently (January 2009) POCit added POCit Elect to its service offering. then 2% Partners Additional information Visa. pay money. enabling clients to make donations to selected charities without a fee.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. USSD 2 is supported by all South African cellular operators and GSM cellphones. Capitec Bank Only one account can be stored on one mobile phone.181 .co. . or link their bank account or credit card for full SWAP Wallet functionality.02) Make payment: Up to ZAR 2. request. 2008 – free From January 1. buy airtime and pay medical bills.pocit.000 (EUR 153) free. 2009: Receive payment ZAR 0. SWAP Mobile www. The use of multiple POCit accounts is not allowed.swapmobile.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. POCit allows subscribers to receive. Mastercard. 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.

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.. i. similar to the model employed elsewhere in the developing world. transfers and prepaid purchases. merchant pays the following fees: Activation of account ZAR 20 (EUR 1.e.38) Transaction fee: 3.(ZAR 0.wizzit.52) Batch transfer fee (every time the merchant wants his accumulated credit to be transferred to his bank account): ZAR 5 (EUR 0. to be processing 10 percent of payments made to businesses in South Africa by end-2009.182 Type of service Type of technology Domain Secured through Cost for usage Mobile remittance USSD M-Payment PIN Free for consumer.Mobile payments 2010 .co.20 per SMS) which can be avoided by choosing to receive the notifications in the online portal.5% There are some notification fees.za .05 per email or ZAR 0. Wizzit www. a so-called pay-as-you-go model. 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 . transactional bank account that uses cell phones for making person-to-person payments.South Africa Short description Wizzit offers a low cost. Partners Additional information The company’s target for next year is to secure 10 percent of the market by the end of the year.

absa. with a maximum of ZAR 35. view balances and statements.00) Partners Additional Over the last few years there has been a surge in uptake.co. ZAR 1. mobile WAP internet and USSD). It is accompanied by a Wizzit maestro debit card for making payments in the retail market. It operates without branches. mini-statements and prepaid top-ups. USSD M – Payment 4 digit PIN Transaction fees: ZAR 6. Absa’s Cellphone Banking services are provided across three different technological platforms (secure SMS.Mobile payment services and pilots information phones for making person-to-person payments. transfers and prepaid purchases. send notices of payments. Wizzit defines its target market as the unbanked and under-banked population of South Africa.90 (EUR 0. Clients open accounts through one of 1400 ‘Wizzkids’. and make cardless ATM payments using Absa’s CashSend facility.00 (EUR 3. and has positioned itself as a virtual bank. catering for different customer segment needs. WAP/Internet. The most popular type of Cellphone Banking transactions are balance enquiries. purchase airtime.55) for first ZAR 100 (EUR 8.00 (EUR 0. Cellphone Banking Absa www. who are members of the local community and can communicate with customers in their own language. Type of service Type of technology Domain Secured through Cost for usage Mobile Banking SMS. Cellphone Banking allows clients to load beneficiaries and make payments. with up .61) .za – South Africa Short description Absa was the first South African bank to introduce Cellphone Banking services in the year 2000. make inter-account transfers.183 .16) for every next ZAR 100 or part thereof.

Platform: Mi-Pay. Absa claims to have 4 million clients on its mobile banking service.7 million logons to Absa’s Cellphone Banking services each month. 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. businesses can receive payment direct from customers’ mobiles. 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. There are 1.000 SMEs use Absa’s Cellphone Banking. Additional information . 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. securely and quickly. 40. People can send money to family and friends. Type of service Type of technology Domain Secured through Cost for usage Partners Mobile remittance SMS M – Payment PIN Not disclosed MNO: Saraf Mobile. the recipient is advised same-time via SMS to go to their local “SarafMobile” agent to collect the transferred cash.184 information to 5000 new clients registering for Cellphone Banking each day. Individuals can go to a ‘SarafMobile’ agent to transfer money easily.Mobile payments 2010 .

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

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

Kenya. . including Burundi. Guinea Bissau. Besides enabling money transfers between MTN subscribers. Rwanda.5 million representing funding by the Africa Enterprise Challenge Fund (AECF) to deliver its service in East Africa. 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. MTN Mobile Money is a SIM-based version of Fundamo’s Mobile Wallet Solution version 3.1.187 . Bank: Standard Bank Uganda. Mobile Remittance SMS M – Payment PIN Free during the pilot.98) and UGX 1 million (EUR 398) to another person.com . Guinea. Ethiopia. The move comes after the company launched its Mobile Money Transfer in Uganda following the completion of a 5-month trial. Monitise East Africa will initially offer services in Uganda with headquarters in Kampala. Liberia Short description Telecommunication services provider MTN Group offers mbanking trials in Benin. Guinea Bissau. Technology: Fundamo MTN Uganda Mobile Money users are allowed to transfer amounts between UGX 5. buy airtime and pay bills using their mobile phones. commercial fees not yet disclosed MNO:MTN. Benin. MTN claims to have 600 agents where users can transfer and withdraw money. In due course the service will expand into neighbouring countries.000 (EUR 1.Mobile payment services and pilots Additional information Monitise has recently been awarded USD 1. Tanzania and Zambia MTN MobileMoney www. Guinea.mtn. Type of service Type of technology Domain Secured through Cost for usage Partners Additional information Mobile Banking. MTN Mobile Money is available to all MTN banked or unbanked subscribers. Liberia and 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.Uganda. MTN’s service MTN Mobile Money allows MTN subscribers to send money. Congo Brazzaville. Congo Brazzaville. Democratic Republic of Congo.

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

Annexes .

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

. implementing decisions. 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. European Commission The European Commission – formally the Commission of the European Communities – is the executive branch of the European Union. Europay International SA was absorbed into MasterCard in 2002. IC Card systems based on EMV are being phased in across the world. Easy Sell An easy sell is an innovation that only differs slightly from its precursor. Also the method of using the innovation is similar or almost similar to using the product or service it is supposed to replace. payment and delivery . for authenticating credit and debit card payments. 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. European Central Bank The European Central Bank (ECB) is the Central Bank of the Euro currency area. ETSI has produced standardizing the GSM cell phone system and the Tetra professional mobile radio system. a natural unit consisting of different elements in an area functioning together with other factors of the environment. upholding Union’s treaties and the general day-to-day running of the Union. The central bank is the entity responsible for the monetary policy of a country or a group of member states. with worldwide projection. Ecosystem Term derived from biology. Its primary responsibility is to maintain the stability of the national currency and money supply. ETSI is an independent non-for-profit standardisation organisation of the telecommunications industry – equipment makers and network operators – in Europe. ETSI ETSI is short for European Telecommunications Standards Institute.take place. The ECB was established by the EU in 1998 with its headquarters in Frankfurt. Germany. The body is responsible for proposing legislation. JCB joined the organisation in December 2004.191 . MasterCard and Visa. the three companies which originally cooperated to develop the standard. The name EMV comes from the initial letters of Europay. EMV EMV is a standard for interoperation of IC (or Chip) cards and IC capable point of sale terminals and ATM’s.

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

Annex I: Glossary Merchant Merchants function as professionals who deal with trade. . The payer may or may not be ‘mobile’ or ‘on the move’. Mobile terminated SMS billing Payment method via SMS where the intended payee closes the payment by receiving one or more SMS messages. Modular architecture Refers to a design of any system composed of separate components than can be connected together. Microsoft. Sema Group. 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. in order to produce profit. 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. MoSign MoSign is a project (short for Mobile Signature) initiated by Deutsche Bank. Materna. This device was developed by Siemens.193 . MNO Mobile Network Operator is a company that provides mobile phone service and has its own frequency allocation of the radio spectrum. 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. Ericsson. dealing in commodities that they do not produce themselves. 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. Siemens and TC TrustCenter in order to demonstrate the deployment of electronic signatures using a mobile signing device.

194 OTA OTA stand for Over The Air. Physical place used for user authentication. However. but not a requirement. Risk Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. Perceived Risk Perceived risk is the subjective judgment that people make about the characteristics and severity of a risk. It refers to a location where a transaction occurs. that a payments institution would be an entity providing as its core business payment services. The consequence is that every cross-border payment in the EU can be treated as a domestic payment. authorisation and stored credentials. Secure Element Also Security Element. 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). It refers to the transportation of messages wirelessly and without landline. It is a law imposed by the European Union which intends to create equal legal conditions for payments in the EU. services or both. 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. . It is envisaged. which is oftentimes a retail shop or the checkout counter in that shop. 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. POS POS is short for Point Of Sale. the PSD does allow for hybrid institutions. Payment A payment is a transfer of wealth from one party to another. or to fulfil a legal obligation.Mobile payments 2010 . such as telecoms providers. A payment is usually made in exchange for the provision of goods. PSD PSD is short for Payments Service Directive. as distinct from other banking services. it houses confidential information. Exposure to the consequences of uncertainty constitutes a risk.

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

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

Israel . Gourville.2005 http://eprint.contactlessnews. the Netherlands.iacr.uk/~gh275/relay.stm Betty Collis (1993) Betty Collis (1993).2007 http://www. H. Tel Aviv University. Ali Bhutto Insitute of Science and Technology. Liezenberg. C. J.Annex II: References References BBC (2008) http://news. UK .org/2005/052. Computer Fraud & Security (2007) analysis of mobile payment security measures and different standards.ac. Smorenberg. Ziv Kfir and Avishai Wool. University of Twente.April 2007 .com/news/2008/01/11/contactless-market-continues-togrow-while-nfc-forecasts-revised-downward/ Eprint.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.iacr. University of Cambridge. Lycklama. Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar.eu (2007) http://europa.co.June 2006 Journal of Payment Strategy & Systems (2007) Understanding buyer and seller behaviour for improved payment product development. Understanding the Psychology of New Product Adoption.pdf Europa. D. Journal of Payment Strategy & Systems .eu/rapid/pressReleasesAction.com (2008) http://www.bbc. Pakistan – June 2007 Contactlessnews. Harvard Business Review . T. Gerhard Hancke.cam. Computer Fraud & Security.cl.pdf Harvard Business Review (2006) Eager Sellers and Stony Buyers.uk/2/hi/uk_news/1966247. Karachi.org (2005) Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems.

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

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

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

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

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