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  • Mpay Vodafone

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    Flaviub23
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    Vodafone is exploring mobile payment solutions in the UK that would allow convenient contactless payments directly from mobile phones. Their proposed system, called Vodafone m-pay bill, would allow micropayments between 5p-£5 to be charged directly to users' phone bills for purchasing digital content and services. Content providers would benefit from instant access to Vodafone's large user base and the ability to do promotional activities. The system would work by authenticating users, charging payments to their phone bill, and settling payments with content providers less a commission. There are considerations around managing direct relationships with content providers versus aggregation, tax issues, and whether purchases should require subscriptions or allow spontaneous one-time buys.

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    Mpay Vodafone

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    Vodafone is exploring mobile payment solutions in the UK that would allow convenient contactless payments directly from mobile phones. Their proposed system, called Vodafone m-pay bill, would allow micropayments between 5p-£5 to be charged directly to users' phone bills for purchasing digital content and services. Content providers would benefit from instant access to Vodafone's large user base and the ability to do promotional activities. The system would work by authenticating users, charging payments to their phone bill, and settling payments with content providers less a commission. There are considerations around managing direct relationships with content providers versus aggregation, tax issues, and whether purchases should require subscriptions or allow spontaneous one-time buys.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    424 views6 pages

    Mpay Vodafone

    Uploaded by

    Flaviub23
    Vodafone is exploring mobile payment solutions in the UK that would allow convenient contactless payments directly from mobile phones. Their proposed system, called Vodafone m-pay bill, would allow micropayments between 5p-£5 to be charged directly to users' phone bills for purchasing digital content and services. Content providers would benefit from instant access to Vodafone's large user base and the ability to do promotional activities. The system would work by authenticating users, charging payments to their phone bill, and settling payments with content providers less a commission. There are considerations around managing direct relationships with content providers versus aggregation, tax issues, and whether purchases should require subscriptions or allow spontaneous one-time buys.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Digital Money Forum

    Mobile payments in the UK

    jim.wadsworth@vodafone.co.uk

    Why will Mobile Commerce happen?


    Always available

    Knows me / what I
    want

    Always with me
    Its mine
    Knows when /
    where I am

    Its unobtrusive

    Authenticates me

    M-Payment Strategy
    Convenient m-commerce payments

    current & future payment methods


    address & consumer details
    mobile & fixed internet
    pan-Europe

    Wallet

    Security
    enabled Via
    Digital
    Signatures

    Possible future enhancements

    digital signature security


    identity applications
    other channels
    loyalty cards

    Now

    Credit &
    Debit
    Cards

    Virtual Cash &


    Phone Billing

    Soon

    Loyalty Cards

    Identity
    Management

    Coming

    What does Vodafone m-pay bill do?


    it allows Vodafone UK consumers to make remote micropayments
    by charging to their phone account
    micropayments of 5p to 5
    suitable for use on GSM, GPRS, 3G and the internet
    separating the cost of the content from the cost of carriage
    allowing Content Providers to set their prices and promotional deals
    cost of bearer = y

    cost of content = x

    CONTENT PROVIDER

    END-USER

    How does it work?


    1. Consumer selects content
    CONSUMER
    INTERFACE
    [WEB / WAP ]

    CONTENT
    PROVIDER OR
    AGGREGATOR
    6. Content delivered

    2. CP passes end-user
    & charge to Vodafone
    m-pay bill

    3. Consumer
    authenticates
    payment

    Vodafone
    m-pay bill
    PLATFORM

    5. Vodafone mpay bill confirms


    payment

    7. VF settles with CP,


    less commission

    4. Charge is posted
    to phone account
    VF BILLING SYSTEM

    Content provider benefits


    At last you can
    charge for low cost
    content remotely

    Suitable for
    the youth market
    with no credit facility

    Instant
    access to
    13.1 million
    Vodafone
    consumers

    FLEXIBILITY

    PROMOTIONAL
    ACTIVITY
    BOGOFs
    loyalty schemes
    competitions
    free samples
    discounts

    Why a telco?

    Your itemised bill


    Account Number
    0123456789

    Invoice Number
    123455678901

    Used By Mr John Smith

    Invoice te
    Da
    01/06/02

    Mobile Number 07777 123456

    oice
    V Network Charges
    Date
    01/05/02
    06/05/02

    01/05/02
    06/05/02

    Time
    17:00:00
    13:00:06

    Number Dialled Duration


    07887822091
    00:02:46
    0378238912
    00:24:00

    You Pay
    1.58
    4:18

    otal
    T for Network
    odafone
    V
    otal
    T Items for Network

    5.76
    2

    otal
    T for Countr
    y United Kingdom
    otal
    T Items for countr
    y

    6.76
    2

    17:00:00
    13:00:06

    07887822091
    0378238912

    00:02:46
    00:24:00

    otal
    T for Network Airtel
    otal
    T Items for Network

    1.58
    6:02
    7.60
    2

    otal
    T for Countr
    y Spain
    otal
    T Items for country

    8.60
    2

    Voiceotal
    T (Ex VAT)

    15.36

    Data Network Charges


    01/05/02
    01/05/02

    12:00:00
    17:00:00

    01603 404271
    07887822091

    00:00:42
    00:02:46

    otal
    T for Network J-Phone
    otal
    T Items for Network

    5.58
    2

    otal
    T for Countr y Japan
    otal
    T Items for country
    01/05/02

    17:00:00

    07887822091

    otal
    T for Network J-Phone
    otal
    T Items for Network

    1.00
    4.58

    5.58
    2
    00:02:46

    3.46
    3.46
    1

    A few considerations (1)


    direct relationships vs aggregation
    technical capabilities
    commercial resource
    commercial relationship
    joint marketing & communications?
    or simply a payment collection service?
    management of disputes
    customer care costs will be huge if the operator is always
    involved
    automated queries, refunds and resends critical

    A few considerations (2)


    tax management
    vat must be handled differently from airtime charges
    and payment collection is a vat-exempt service

    application developers & content providers


    obvious benefit for content owners
    adds useful functionality for application developers
    subscriptions vs spontaneous one-off purchases
    should the consumer be locked in to a package?
    or free to shop around and make spontaneous purchases?

    and finally...

    DO YOU HAVE
    ANY CONTENT
    YOU WANT
    TO SELL?

    Digital Money Forum


    Mobile payments in the UK

    jim.wadsworth@vodafone.co.uk

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