Professional Documents
Culture Documents
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.
Publisher: Innopay
Edition
Version 1.0 1
November 2009
ISBN/EAN 978-94-90587-01-7
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.
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:
— 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.
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.
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.
Management summary..................................................................................... 10
5 Lessons, trends and issues from analysis of global pilots and initiatives .............. 50
ANNEXES
References........................................................................................... 197
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. For those who remember,
there was similar activity at the turn of the millennium when there were also predictions of
aggressive growths in mobile payments. However this growth did not materialise and mobile
payments have in fact largely remained an undelivered promise for more than a decade.
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.
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 both
extra payment related revenues and the associated increase in air time and data use. 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.
For merchants, Point of Sale mobile payments could provide faster throughput at the
checkout and the ability to send real time marketing messages to the consumer. However,
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. 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.
From the perspective of the end consumer, the mobile phone has achieved ‘permanent
share of pocket’, i.e. next to the wallet and keys it is the object that is most likely to be
constantly with the consumer. Furthermore, consumers are increasingly more comfortable
with the mobile phone fulfilling more than one function, with mobile devices slowly
morphing into multi-media and multi-application devices.
The benefits and opportunities seem clear for all parties involved.
11 - Management summary
In this report a proposal is made to view payments separately from other functions that can
be performed with the mobile device, such as ordering or receiving digital goods. 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), minimize costs and to maximise usability. The creation of mobile payment
solutions needs to take these behavioural considerations around a payment into account.
Mobile payments are thus very different in user experience and business model from mobile
banking or mobile authentication and should be treated as separate subject.
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. Analysis of several contexts through this realisation shows that:
Purchase of non physical goods (e.g. ring tone, parking, 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.
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
current focus of these solutions is the promotion of their usability features (e.g.
contactless, interactive communication on mobile device, etc). The key deterrent 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
Public transport is likely to provide the highest volume potential for mobile payments.
However it is not clear what advantages mobile payments bring in this context over
contactless payments.
Remote Point of Sale, e.g. vending machine has obvious benefits from mobile payments if
costs of these solutions can be kept low.
In addition, the needs of the end consumer need to be taken into account. Most service
providers are aware of the behavioural barriers of new products such as economic switching
costs (e.g. activation fees, learning costs, obsolescence fees, etc) but what service
providers often don’t take into account are the psychological barriers associated with
behavioural change. 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. These barriers imply that one of the keys to
successful adoption of a new innovation is the degree of change demanded from the
Mobile payments 2010 - 12
receiver of the innovation. The smaller the consumer’s change in behaviour needs to be,
the greater the chances of success are.
Contactless technology has matured in the last few decades with the ability to
communicate two-way, faster throughput and better security. These changes have made
this technology suitable for use in payments. While this technology has received the most
press in relation to payments it is in other non payment applications such as mobile
ticketing, loyalty and smart advertisements that this technology is believed to be able to
offer the most benefit. 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.
SMS, while a simple and easy to use technology has a number of limitations that complicate
its use in payments. SMS uses store and forward technology, i.e. the message is stored with
the operator on its way to the recipient or until the recipient becomes available. Often
there is a maximum time limit for which the operator holds the message for delivery in case
the recipient’s phone is unavailable. Also, SMS does not use any encryption and finally there
is no proof of delivery within the SMS protocol. 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.
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.
In developing countries which are underserved by the banking industry, the focus remains
on mobile money transfer via SMS. 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 some Asian countries there is a low internet penetration, a
comparatively high mobile adoption and a push by the operators to offer mobile payments
like mobile POS and mobile ticketing. In Western Europe the situation is different again as
the region is generally not under-banked and has a high internet penetration but the uptake
of mobile internet is relatively low, compared to Japan for example.
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.
Many mobile payment initiatives are still in a pilot stage, with a few notable exceptions
that have been commercially launched on a large scale. Examples of widely used
13 - Management summary
commercially available services are Paybox in Austria, G-Cash in the Philippines, NTT
DoCoMo’s Osaifu-Keitai in Japan and M-PESA in Kenya.
Our analysis of mobile initiatives around the world reveals the following key drivers and
barriers for the adoption of mobile payments.
Drivers Barriers
Offering added value for consumers, merchants Complex value chain with lack of co-operation
mobile operators, financial institutions and other Financial regulation
participants in the ecosystem
Security/risk (perception of security/risk)
User experience/easy to use
Cost
capable handset
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, namely the
financial institutions and the mobile network operators. There have been many reasons for
this lack of cooperation, some of these (in no order of priority) are: desire by players in
each industry to diversify from their core businesses, debate over who ‘owns’ the customer,
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.
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, the
NFC Forum and EMVCo.
Mobile payments are currently again on top of mind. In this report we show that while
mobile payments hold substantial attraction and potential there are several key issues that
must be addressed to ensure success.
Part 1
Market analysis
1 Introduction to this report
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.
For those who remember, there was similar activity at the turn of the millennium. At that
time there were also predictions of aggressive growths in mobile payments, however this
growth did not materialise. Mobile payments have in fact largely remained an undelivered
promise for more than a decade.
In 2002 market experts forecast that by 2006 €55 billion would be processed through
mobile payments. However, in 2006 the same sources predicted the market to reach only
€10 billion by 20101.
In 2009, one source predicted that in 2013 an absurd $800 billion2 would be transacted by
phone while another source predicted a much more conservative $1.5 billion for the
United States alone3.
The reality is that market size and growth fall far short of most predictions and that
growth is anything but given.
80
60
50
40
30
20
10
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1
www.mobilemonday.net/news/mobile-payment-market-to-reach-eur-55-billion-in-2006
2
www.marketwire.com/press-release/Xcellink-International-Inc-1031269.html
3
www.frost.com/prod/servlet/press-release.pag?Src=RSS&docid=165875378
Mobile payments 2010 - 16
While the attraction of mobile payments is widely recognised, there are some key
development areas that must be given attention. These areas for attention suggest caution
amidst the current excitement around mobile payments. 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
For financial institutions4 mobile payments are first and foremost a defensive play. From a
retail banking point of view, financial institutions are primarily focused on protecting the
current account and surrounding loan products. Retail payments including mobile payments
are more often than not a loss leader for these more profitable products. From a wholesale
banking point of view financial institutions have already been disintermediated to some
degree from their wholesale customers by third parties in the area of online payments.
Financial institutions are keen to avoid the further worsening of this situation through third
party mobile payments. 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.
Furthermore in developing geographies mobile payments offer financial institutions the
opportunity to cost-effectively capture and service non and under-banked communities.
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, extra payment related revenues and through associated increases in air
time and data use. For mobile network operators mobile payments also hold the
possibilities of allowing for diversification into other areas of the consumer’s needs and
lifestyle.
As with any technology led development, 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.
4
See glossary for definition of ‘financial institution’ and other payments terms
17 - Introduction to this report
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.
For merchants, Point of Sale mobile payments could provide faster throughput at the
checkout and the ability to send real time marketing messages to the consumer. However,
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. However un-manned or remote Point of Sale locations could
benefit from mobile payment by allowing a reduction in servicing costs. Remote mobile
payments provide another channel for merchants and as such are an attractive proposition
if the use of the channel can gain wide scale adoption at lower costs than existing
channels.
From the perspective of the end consumer, the mobile phone has achieved ‘permanent
share of pocket’, i.e. next to the wallet and keys it is the object that is most likely to be
constantly with the consumer. Furthermore, consumers are increasingly more comfortable
with the mobile phone fulfilling more than one function, with mobile devices slowly
morphing into multi-media and multi-application devices. However, does this mean that
end consumers are ready to abandon the wallet and rely primarily on the phone, which is
more a lifestyle or leisure tool, for the important task of handling their payments?
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. The following are the key trends and
developments for 2010:
Today, there are many ways in the market to define what a mobile payment is and almost
as many ways of categorising mobile payments. Industry professionals cannot come to an
agreement on the exact definition of a mobile payment. There is often confusion and
overlap between mobile payments, mobile banking, and the use of the mobile phone to
simply order goods or receive delivery (while paying by other means). This lack of coherent
definitions and mutually shared categorisations across the industry is one of the factors
Mobile payments 2010 - 18
Core to the analysis in this report is the study of the various contexts in which mobile
payments may be successful. It is likely that many of the pilots and initiatives being quickly
launched today have not examined this critical question closely enough.
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. This reasoning may prove to be false. Not all things that ‘are
logical’ also actually happen.
Context analysis looks at the payment behaviour of the various actors in a transaction. 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. 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.
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, 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.
19 - Introduction to this report
There are a number of mobile payment pilots and initiatives in motion around the world
today. Different geographies have different levels of progress and maturity in different
applications of mobile payments. For example several African countries make use of mobile
payments for peer to peer remittance and to reach the un-banked. 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. Europe is actively experimenting with Point of
Sale NFC payments. What can be learned from each application of mobile payments? What
geography specific contexts should be taken into account? In section 5 of this report the
current various applications of mobile payments and the trends and characteristics of these
applications are examined.
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. 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. The resulting mobile network operator
only solutions have generally been limited to market niches (e.g. premium SMS). Why has
such cooperation between these stakeholders been so difficult to achieve so far? In section
6 the current barriers to cooperation are examined. Similarly standardisation is considered
to be essential to the long term survival and growth of mobile payments. There have been
and continue to be several attempts at standardisation. Section 6 of this report describes
the importance of standardisation for mobile payments and looks at some of the current
attempts and their status.
2 Towards a clearer definition of mobile payment
Mobile payments are a hot topic in financial, telecommunication and technology circles
right now. However, professionals across these industries have not yet come to a clear and
mutually agreed definition and classification of mobile payments. 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. In this section a
proposal is made to view payments separately from other functions that can be performed
with the mobile device. Additionally a simple classification of mobile payments by location
and funding method is offered. In section 3 of this report, classifications are examined
more closely and several alternative possibilities are offered for classifying mobile payment
methods.
One of the issues with mobile payments in the market today is the lack of a clear and
shared definition across the industry. There is often confusion and overlap between a
mobile payment, mobile banking, and the use of the mobile phone to simply order goods or
receive delivery (while paying by other means).
There are four main areas for the use of a mobile phone in the context of a financial
transaction. These are:
— Mobile order – transactions where the mobile phone is used simply to initiate the order
(but not to make the payment).
— 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. The
location of the payer is not important: he may or may not be ‘mobile’ or ‘on the move’
or at a Point of Sale.
— Mobile delivery - transactions where the mobile phone is used simply to receive
delivery of goods or services, e.g. an event ticket (but not to make the payment).
— 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.
— Mobile banking – access to banking functionality (query + transaction) via the mobile
phone. 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 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.
21 - Towards a clearer definition of mobile payment
Payments made within the confines of the bank provided mobile banking environment can
be effectively removed from the detailed discussion around mobile payments. Such
payments can be discussed separately as attributes or features of mobile banking.
Of the current applications of the mobile phone in a transaction, only a subset involve
actual payment with the mobile. The large majority of applications simply use the mobile
phone to initiate the order, receive delivery or authenticate the consumer.
M-Banxafe (Belgium)
M-Banxafe (Belgium(
Payments at a No Yes No No No
physical point of sale
Paybox (Austria)
People’s Bank
(Georgia)
BankID (Norway)
The current overlap by the industry of such diverse functions as banking, order, delivery
and authentication under the common label of mobile payments has some negative
consequences for the development of mobile payment solutions.
By confusing and using the term mobile payments for non payment functions such as
banking, order, 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.
The scope of this report is limited to mobile payment, as defined in the previous paragraph:
a payment where the mobile phone is involved in the initiation and confirmation of the
payment.
23 - Towards a clearer definition of mobile payment
A method that is included under the definition of mobile payments, but which is not
included in great detail in this report is premium SMS and premium rate phone numbers.
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.
Services are very similar to each other and almost every MNO supports these services.
In part 2 of the report, where we give a description of the most relevant payments
initiatives, we will also pay attention to interesting mobile banking and mobile ticketing.
The more theoretical part 1 focuses on mobile payments, minus premium rate SMS and
premium rate phone numbers.
Given the above definition of a mobile payment there are two dimensions for further
classification, these are:
— By funding method
These dimensions are defined in more detail through the diagram and accompanying
examples of applications below:
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. Examples have been provided of these differences. Also a simple categorisation has
been offered for mobile payments and popular initiatives and pilots have been plotted
within this categorisation. In the next section some of the situational and contextual
factors that can impact the success of mobile payments are examined.
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.
Buyers make different judgments than sellers and therefore any payment solution balances
risk mitigation, usability and cost between buyer and seller. A transaction occurs when both
parties experience an acceptable balance between the three factors.
Consumers tend to overvalue existing payment methods while businesses overvalue new
innovative payment methods, causing most new payment methods to fail. Businesses
introducing new mobile payment methods must take this bias into account and be prepared
with strategies discussed in this section.
The amount of perceived risk is determined by the timing and location of the:
— Agreement.
— Payment.
— Delivery.
In traditional commerce the Agreement, Payment and Delivery take place on the same
moment. This is the case in a typical retail setting (purchase of furniture being a notable
exception). The amount of risk between buyer and seller is distributed evenly: the buyer
receives delivery when the seller is paid.
With the introduction of media (mail, internet and mobile phone) things changed
drastically. First there was the introduction of mail order in the middle of the previous
century. Then came telephone and internet ordering and now it is possible to order and pay
with your mobile. ‘Distant commerce’ has decoupled time and place thereby introducing
feelings of risk associated with each step in the process. Both consumers and business thus
feel variying degrees of risk for concluding the agreement, the payment and the delivery.
5
For the detailed academic overview of the concepts in this section, see ‘Understanding buyer and seller
behaviour for improved payment product development’, C. Liezenberg, D. Lycklama, H. Smorenberg. Journal of
Payment Strategy & Systems, April 2007
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. First a better understanding of these risks is
required.
The perceived risk by sellers and buyers is strongly determined by the context of the
transaction. From analysis and practical experience, it was found that four generic factors
constitute the transaction context, which in effect determines the risk perceived by the
actors in a transaction:
1. Timing
The timeline and order in which the processes are executed. Processes can be executed
simultaneously or disconnected. In the latter case the order of Payment and Delivery can
be swapped. This leads to three generic types of timings as shown in Figure 3-1below:
Figure 3-1: Different timing and order of the Agreement, Payment and Delivery in the transaction processes
2. Location
The location of a transaction process, physical or virtual. Location can also be related to
the geographical distance between buyer and seller. Examples of physical locations are
shops, markets and vending machines. Virtual locations refer to ‘channels’, such as mobile,
internet and email. Virtual and/or distanced locations of the actors transacting typically
increase the Risk perceived.
3. Relation
The relation between the buyer and the seller. Three types of relationships are
distinguished: anonymous, known and trusted. The type of relation influences the perceived
risk for both parties. This context factor is a dynamic one: over time the relation between
buyer and seller changes, changing also the risk perceived. Repetitive transactions (e.g.
subscriptions, rent) typically lead to a higher degree of trust than incidental transactions.
With low trust, parties will seek more guarantees during the transaction process.
Mobile payments 2010 - 26
4. Product
The characteristics of the product delivered. Core characteristics are the value (high/low)
and substance (virtual/physical). Especially the value of the product strongly determines
risk perceived by both actors. High-value products require more guarantees than low-value
products. Also the nature of the product influences the risk: e.g. small high value
electronic products are an attractive fraud target. The substance of the product directly
relates to the delivery channel. In case of electronic/digital products, these can be
delivered through electronic channels. Physical products obviously can not.
For each context the table below shows the likelihood of success for mobile payment
methods.
Context Summary
Purchase of a ring Mobile payment applications that debit from a current account would be popular for this
tone context as long as a reputable party was perceived to be making the deductions (thereby
reducing the perceived risk from the buyer). 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. 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.
Purchase of a CD in NFC based mobile payment solutions will find it a long and hard battle to break into this
a shop market because of the attraction of existing solutions such as debit and credit cards. The
focus of current NFC solutions and pilots is predominantly on promoting their usability
features (e.g. contactless, interactive communication on mobile device, etc). 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.
Parking with a Our analysis shows that direct debit from current account is the most suitable solution in
mobile phone this context. The one main downside of this solution is the need to pre-register.
Providers that can innovate through a solution that offers no registration requirements
but still deducts the payment amount from the current account will find the greatest
success in this market.
TV voting with SMS This context has been ripe for a new innovative solution for a long time now. The
existing solutions while highly usable are relatively extremely costly. 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
27 - In which situations could mobile payment be successful?
Context Summary
the payment would find success in this mature and highly profitable market.
Pizza order via While cash is the current dominant solution in this context, an SMS based mobile solution
telephone could successfully enter this market. Addition of the payment amount from the mobile
device bill could be easily achieved given current market capabilities but would be an
expensive option compared to the average transaction value. Again in this context, as
for purchase of a ring tone, parking and TV voting mentioned above, a cooperative
model between mobile network operators and financial institutions that deduct the
amount from the current account would achieve success in this context.
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, or low online penetration. 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.
Public transport Contactless card solutions are a proven success in this context; successful
implementations include Hong Kong – Octopus card and the London Oyster card.
Migration of the contactless functionality to the mobile device would be a natural
evolution. 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.
Vending machine SMS and NFC mobile solutions have obvious advantages in this context over cash if costs
of these solutions can be kept low.
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.
Businesses spend billions of dollars improving existing products and processes only to find
consumers roundly reject them. Studies quoted by Gourville state that over the last 25
years new products have failed at the staggering rate of 40%-90%.
6
‘Eager Sellers and Stony Buyers, Understanding the Psychology of New Product Adoption’, J. T. Gourville.
Harvard Business Review, June 2006
Mobile payments 2010 - 28
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.
New products often require consumers to change their behaviour. As companies know,
those behaviour changes entail costs. In the case of new payment methods for example,
consumers incur:
— Learning costs such as learning how to use a new payment method and
All of these are economic switching costs that most companies usually anticipate. What
businesses don’t take into account, however, are the psychological costs associated with
behaviour change.
Many products fail because of a universal, but largely ignored, psychological bias called
status quo bias: people irrationally overvalue benefits they currently possess relative to
those they don’t. 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.
Furthermore people tend to display a second psychological bias, loss aversion, i.e. they are
more upset at losing a benefit than they are delighted at gaining a similar benefit.
Therefore, it’s not enough for a new product to be better, unless the benefits (of the new
product) far outweigh the losses (from not using the existing product), consumers will not
adopt it.
Status quo and loss aversion biases imply that one of the keys to successful adoption of a
new innovation is the degree of behavioural change demanded from the receiver of the
innovation. The less change demanded the less impact is likely from these two
psychological biases in the innovation being accepted. This is depicted in the matrix below
which plots behavioural change demanded from the consumer with the product change
inherent in the innovation.
29 - In which situations could mobile payment be successful?
Figure 3-2: Classification of innovations along behaviour change and product change axes.
At the top left of the matrix are the ‘easy sells’. Examples from the realm of online
payments are credit cards. Credit cards are a payment instrument that was never meant or
designed for use online. However the product, with little to no modification can be used
online, i.e. product modification is low. Furthermore, 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. This is the
reason why in countries where credit cards were already a popular payment instrument
offline, they have also become a popular payment instrument online.
At the top right of the matrix there are the ‘smash hits’. 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. These payment methods use online banking
processes and authentication mechanisms to authorize a payment. The original online
banking product is modified considerably at its interfaces to serve this function so the
product changes are high. 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. 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.
At the bottom left of the matrix are the ‘sure failures’, these entail little product changes
but significant behavioural changes. An example in this category is the Wireless Access
Protocol (WAP) which at the turn of the millennium was believed to hold much potential.
The promise of WAP was to bring the familiar online interface to which a consumer was
Mobile payments 2010 - 30
accustomed, to the mobile phone. The product change or additional benefit to the
consumer was low, 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. Needless to say WAP did not achieve much success.
At the bottom right of the matrix are the ‘long hauls’, these entail significant product
changes and significant behavioural changes. An example in this category is NFC enabled
mobile payments at the point of sale. The product changes are considerable, in most NFC
pilots, 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, loyalty points and marketing messages and can check their balance
and transaction history directly from their payment device. All functionality that existing
Point of Sale payment devices, e.g. cash, cards etc can not deliver. However, while the
product changes are high, the behavioural changes are also high for a consumer in moving
from cash/cards to their phone as the payment device.
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.
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.
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. 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.g. The Netherlands, Finland, etc), where the benefits such
as; low cost of processing even for small transaction amounts, 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.
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. A classic example of this has been the
introduction of online banking over the last 10-15 years. Online banking as an innovation
has involved significant behavioural change compared to visiting a physical branch.
However where it has been successful its introduction has been invariably accompanied by
31 - 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).
Another strategy is to simply make behaviourally compatible products; credit cards for use
in the online world are an excellent example of this as mentioned above.
An additional strategy is to seek out consumers or niches that do not currently use any
incumbent product in that particular category. 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.
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. These are the early
adopters. Most of the NFC pilots across Europe are targeting such consumers and merchants
and generally finding success with these early adopters.
In this section the importance of minimising risk and cost and maximizing usability in a
payment transaction has been examined. 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, Usability and Cost. Also some strategies to
overcome behavioural and psychological biases in adopting innovations have been proposed.
In the next section recent technical developments and their implications on mobile
payments are presented.
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. In this context it is critical to understand the
nature and limits of these technologies.
In this section first the developments in contactless technologies are reviewed and the
recent changes that have spawned the NFC phenomena are examined. It is shown that the
commercial availability of NFC phones remains limited. Eager NFC-based payments
initiatives increasingly rely on NFC-stickers, thereby circumnavigating phone
manufacturers. It is likely to be other non payment applications that will first result in wide
scale use of NFC technology. It will be the compatibility with these non payment NFC
applications that will determine and pave the road to the success of NFC payments.
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, SMS and NFC.
Finally two popular technologies for remote payment applications are examined; 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.
Contactless technology has been around for a while and it is used regularly in our daily
lives. For example, 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.
— Proximity, this technology has a much smaller read distance, usually about 7.5
centimetres (3 inches) in most instances. The small read distance leads this technology
to be used in many day to day applications such as the office access cards.
Radio frequency identification or RFID is a well known application of contactless using both
vicinity and proximity technology. RFID is used extensively in areas such as product
tracking, passports, animal identification, libraries, etc. However, the restriction of RFID
has always been that it is a one way communication standard; from the code to the reader.
33 - Recent technical developments and implications
This restriction was resolved in the 1990’s by Philips and Sony. The two companies jointly
developed a standard for two way contactless communication. 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.
The critical developments of two way communications, faster data transfer speed and
increased data security have made contactless technology ripe for use in payments. 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.
However, because of the interactive communication opportunities offered by the two way
capabilities of NFC, this technology only offers its full potential when used with an
interactive device such as a mobile phone.
NFC is often compared to Bluetooth. Without going into too much of the technical details,
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, has a
shorter range than that makes it more secure for use in crowded places, and finally NFC can
be used even when the enclosing device has a depleted battery or is switched off while
Bluetooth cannot be used in such conditions.
The market for NFC enabled phones is still in an early stage of development. At the time of
writing of this report there is still only one NFC enabled phone commercially available on
the market: the Nokia 6212. Nokia expects the 6212 to be available at the start of 2010.
Sagem released the Sagem My 700X NFC in 2007, but demand for this mobile phone was
disappointing.
Samsung and Philips presented an NFC enabled phone at the GSM 2006 conference in
Barcelona, called Samsung X700 NFC, but this phone is still not commercially available7.
Other NFC phones have been created8 but only for NFC trials and are not yet commercially
available9. Several of the mobile phone manufacturers are currently providing prototype
7
http://mobilementalism.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfc-phone-at-3gsm/
Mobile payments 2010 - 34
NFC-enabled mobile phones for trials by mobile operators with plans to provide commercial
versions of the phones in 200910. In early 2007, GSMA already indicated that ‘the design of
new mobile handsets for NFC mobile devices is a key point that needs to be considered.11
The diffusion of NFC-enabled phones has been subject of many speculations. Many
established market research firms like ABI Research and Juniper have marketed reports
predicting a rapid uptake in shipment of NFC-phones. This rapid uptake has yet to
materialise.
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.
This, however, 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. According to the participants, the deal could well make sure that NFC is
being built into mass market handsets for under USD 1.
While waiting for NFC handsets to become available, NFC-stickers may be a stopgap
solution.
8
www.nfc-research.at/index.php?id=45
9
www.zdnetasia.com/news/communications/0,39044192,62031790,00.htm
10
www.gsmworld.com/documents/pbm/gsma_pbm_white_paper_11_2007.pdf
11
www.gsmworld.com/documents/nfc_services_0207.pdf
35 - Recent technical developments and implications
MasterCard, that offers the PayPas service, sees this approach as a bridge to fully
integrated contactless m-payments services using NFC technology.
This sticker however is not strictly related to mobile payment: the consumer can decide to
put the sticker on his mobile phone, but also on his wallet or credit card.
US-based mobile commerce company Mobile Candy Dish for instance, has decided it cannot
afford to wait for NFC handsets to become available. Already in Q2 2008, it announced to
make use of NFC-enabled stickers.12
In a separate move, Turkish Garanti Bank and American Citi bank have introduced their own
plans for mobile payments, circumventing mobile network operators and mobile phone
manufacturers altogether.
Turkish Garanti Bank, which launched Europe’s largest contactless payment card trial with
its Bonus PayPass credit card, was among the first banks to offer its consumers a small
version of the card they can stick onto the back of their mobile telephones. This allows the
customer to use their phones to make low-value purchases with PayPass – without the need
for handsets that support NFC. The sticker cuts telcos and mobile phone manufacturers out
of the loop, making the bank the only institution to handle mobile payment transactions.
The stickers measure about one-quarter the size of a standard bank credit or debit card.
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. 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.
— Mobile ticketing: the NFC device acts as an access token, 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), 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,
for example to control access to a computer network
12
Mobile Payments Update vol. 2; Issue 16; The Paypers/Telecompaper
Mobile payments 2010 - 36
— Health care application: the NFC device is used for example to store medical
information for use in emergencies
— Digital rights management: the NFC device is used for example to allow controlled
exchange of purchased music or multi-media data
— Automotive application: the NFC device is used for example to control access to a car
— Bluetooth pairing: in the future pairing of Bluetooth 2.1 devices with NFC support will
be as easy as bringing them close together and accepting the pairing. The process of
activating Bluetooth on both sides, searching, waiting, pairing and authorization will
be replaced by a simple ‘touch’ of the mobile phones.
It is the first three applications in this list; mobile ticketing, loyalty and smart
advertisement that are believed to provide the most compatibility with payments.
From a users’ perspective, the perceived lack of security of NFC technology is an inhibitor
for adoption. In order to distinguish fact from fiction, some of the security issues for NFC-
based mobile payments are described in this section.
Attacks on the NFC payment process can be divided in three categories – parallel to the NFC
process:
Attacking the reader means modifying someone’s mobile telephone and the NFC reader in
it. This implies that the fraudster should have access to the mobile phone for a certain
period of time. As the number of applications for the NFC-phone is still quite limited, this
method is not deemed to be rewarding. Also, it is easier and probably more rewarding to
target a different part of the NFC payment process.
In a landmark study of the Fraunhofer Institute SIT, Collin Mulliner13 states that the weakest
link in the chain is the passive NFC tag.
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. In this mode, the target device (phone) may draw its operating power from
13
www.mulliner.org/nfc/feed/collin_mulliner_25c3_attacking_nfc_phones.pdf
37 - Recent technical developments and implications
the tag’s electromagnetic field, enabling the NFC-payment to take place, even if the
phone’s battery is flat.
The active communication mode: both initiator (tag) and target (phone) communicate by
alternately generating their own field. Both tag and phone need a power supply.
Mulliner found out that especially the passive communication mode is vulnerable to
attacks. This is bad news, since the majority of messages exchanged via NFC, are
exchanged using passive communication mode. 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.
But the low price of the tag is not only an advantage: for fraudsters it’s also quite simple to
purchase a tag and replace a ‘common’ tag by one of their own. The replaced tag cannot
be identified as such by someone who wants to tap his NFC phone on it. Only after tapping,
the victim can see what the tag intends to do with the phone.
A smart poster could include a tag set to deliver a free phone number to a user’s handset.
This means, for instance, that when an NFC handset owner interacts with a tag on a movie
poster or tourist information map, instead of the tag performing the expected operation it
would instead do whatever the fraudster had set it up to do.
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.
A smart poster could include a tag set to deliver a freephone number to a user's handset.
This could be replaced with a tag set to deliver a premium rate number belonging to the
fraudster instead.
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.
Mulliner then took a look at how this all might work in the field, visiting Vienna and
Frankfurt to look at both transit ticketing and vending machine applications. In a group of
four vending machines, for example, he identified that the NFC tags on machines B, C and
D could be replaced with tags that point to vending machine A. Then, whenever anyone
made a purchase at any of those machines, the item bought would be dispensed from
machine A — straight into the waiting hands of the fraudster.
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.
Mulliner then presented his findings to Nokia who, he says, took them seriously and
responded promptly. The result, he revealed at 253C, is that many of the issues uncovered
during the initial testing have now been fixed — but there are still issues. "The Nokia 6212
Mobile payments 2010 - 38
Classic is not vulnerable to most of the bugs I found in the Nokia 6131 NFC," Mulliner told
the audience, "but URL spoofing is still possible."
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. 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. This however is not the case. Using a so-called relay
attack, attacks can be executed from a very long distance. This however requires quite
some skills and is not easy to accomplish, but it is not impossible, as a Cambridge University
survey described below shows14.
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 result the
legitimate owner will remain unaware of the attack. University of Cambridge has shown
that their hardware can successfully execute a relay attack against an ISO 14443A
contactless smart card, up to a distance of 50 m. 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. This attack is therefore a feasible
method for circumventing current security protocols with little effort. Application-level
measures fail to protect against relay attacks.
The basic relay attack system is built using two devices, which are called the ghost and the
leech. The ghost is a device which fakes a card to the reader, and the leech is a device
which fakes a reader to the card as shown in the diagram below.
The main idea of the ghost and the leech is to create a bidirectional communication
channel between the genuine reader and the victim card. The channel passes through the
leech and the ghost and provides transparent communication between the reader and the
card at a range that is much greater than the nominal system range.
14
A practical relay attack on ISO 14443 proximity cards by Gerhard Hancke, University of Cambridge, UK -
www.cl.cam.ac.uk/~gh275/relay.pdf
39 - Recent technical developments and implications
The typical communication scenario starts with a message that the reader sends to the
ghost, which acts as a regular card. The ghost receives the message, sends the message to
the leech using a fast digital communication channel and minimum delay, without any data
manipulation. The leech receives the message, fakes the real reader and transmits the
message to the real card. In the opposite direction (tag to reader) the communication
scenario is reversed.
Using this technique gives the ability to create a relay, or repeater between a reader and a
card. The relay is orthogonal to any higher level security protocols such as those defined in
the ISO 7816.4 standard [ISO95]. Furthermore, using the two devices (the ghost and the
leech) allows the distance between the reader and the real card to be practically
unlimited.
The attack described here breaks the assumption that the reader is communicating with a
card that is physically close. Using the relay attack, the attacker causes the reader to
(unknowingly) communicate with a genuine card which is far away. This opens several
possible threats. A typical attack is to charge someone else's credit card or electronic
wallet for a purchase. To mount such an attack, one could place a leech device close to the
victim smartcard (e.g., slip the leech into the victim's handbag), and then present the ghost
to the reader at payment time. One could also open a secure door using a relay attack on
someone else's contactless key15 device.
Eavesdropping
For making an NFC-based mobile payment, a radio frequency signal is sent from sender to
recipient. This signal can be illegally intercepted by a third party and this act is called
‘eavesdropping’. This third party then becomes the recipient or a co-recipient.
Because of the short range of this communication mode, 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, as described in the relay attack section. 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, location, power of signal
emitted by the NFC device and environmental noise. Eavesdropping is also impacted by the
communication mode. RFID and NFC communication encompasses the communication
between two tags. One is a sender and one a receiver. The sender node creates a radio
frequency field which the receiver node receives. An RFID tag which is capable of creating
a radio frequency field by itself is called an active device. A tag which is only capable of
receiving an RF-field is called a passive device. A sender node must be an active device,
otherwise it cannot initiate communication with a receiver. A receiver can either be active
or passive. In active mode, the modulation is stronger, especially at low bandwidths, which
15
http://eprint.iacr.org/2005/052.pdf; Picking Virtual Pockets using Relay Attacks on Contactless Smartcard
Systems; Ziv Kfir and Avishai Wool,Tel Aviv University
Mobile payments 2010 - 40
makes the communication more vulnerable to eavesdropping. A passive device, which does
not generate its own RF field is much harder to eavesdrop than an active device.
Transferring data through a secure channel, which is a way of transferring data that is
resistant to interception and tampering, can mitigate eaves dropping.
Data destruction
Data destruction can be executed by disturbing the signal that the NFC device(s) send(s).
Destruction is relatively easy to realise with NFC. It is possible to disturb the signal by
jamming certain radio frequencies. Operating such equipment only requires basic electronic
engineering skills. There is no benefit for the disturber however besides the fact that the
transaction is made impossible
Up till now, there is no clearly defined way to prevent such an attack. Mechanisms that
prevent collision of different RFID signals cannot disable such an attack. The employment
of security cameras and personnel may detect an attack in progress, as jammer equipment
cannot be easily concealed within a bag or jacket. Also, RFID readers may contain jammer
sensors triggering an alarm when a jammer is detected, although this is a rather expensive
option.
When two parties A and B want to communicate with each other, a third party might trick A
and B in a three party conversation as shown in the diagram below.
Assuming party A uses active mode and B uses passive mode, A generates an RF field and
sends data to B. If unwanted party C is physically near enough, C can eavesdrop the data
sent by A. Additionally, C has to disturb the transmission of A to B, to make sure B does not
receive the data sent by A. Although disturbing transmission is possible, C is vulnerable to
discovery since A might detect disturbance and abandon the transmission, which makes C’s
attempts futile. In case A does not detect the disturbance, transmission to B will continue,
albeit disturbed. In order to make a successful attempt, C has to make sure that party B
receives C’s signal, and not A’s. So C has to create a second RF field. This causes two RF
fields to be active simultaneously. Aligning two RF fields is possible in practice albeit it is
very hard. If the attacker C manages to do so it is possible to send a readable message to B
and the attack might succeed. If the two fields are not perfectly aligned, recipient B will
receive an unreadable and not understandable message, which renders the attack futile.
All in all, this attack is very difficult to execute and vulnerable to early stage discovery by
initiating party A.
Data insertion
Data insertion means that the attacker inserts messages into the data exchange between
two devices. This is only possible, in case the answering device needs a very long time to
answer. The attacker could then send his data earlier than the valid receiver. The insertion
will be successful, only, if the inserted data can be transmitted, before the original device
starts with the answer. If both data streams overlap, the data will be corrupted.
Short Message Service (SMS) is a communication protocol allowing for the interchange of
short text messages between mobile telephony devices. Most SMS messages are mobile-to-
mobile text messages, though the standard supports other types of broadcast messaging as
well, e.g. mobile to landline, mobile to computer.
SMS has three characteristics that are important to consider in its use for a payments
application, these are:
— Store-and-forward, this means that the text message is sent from the sender phone to
an operator. When the intended recipient’s phone is available for this message to be
received, the operator sends this message through to the recipient. Oftentimes, there
is a maximum to the time that an operator holds a message for delivery in case the
recipient’s phone is shut off, the battery is flat or the phone has no reach.
increases the costs of a single transaction and is not economical if the transferred
amounts are small.
The combination of these three factors makes SMS unsuitable for use in many payment
applications. Where it can and is used extensively however is simply to transfer initiation
messages for a payments process.
The service level security is important for secure m-commerce applications, especially
those involving monetary transactions. Short Message Service is a most popular data service
offered by mobile network operators and most widely used for mobile payments. By using
SMS to initiate or authorize payments the SMS can be then used as the unit of currency
itself. 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.
However protection ends in the radio interface. There is no end-to-end security, the
network operator and its infrastructure must be trusted for transactions16.
A secure mobile payment system should have the following security properties17:
For SMS the confidential info is stored at the merchant’s end of the equation. The
security of the transaction is as secure as the security of the merchant.
— Authentication: ensures parties with access to a transaction are not impostors and are
trusted.
For post-billed SMS services, this is an extremely weak point. If a mobile device is
stolen, the thief can abuse this as much as they like, until the account is blocked. The
person initiating the transaction does not need to be the person paying for it. In the UK
alone, 700,000 mobile phones are stolen each year18
— Integrity: the information and systems have not been altered or corrupted by outside
parties.
16
Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar – Ali Bhutto Insitute of Science and Technology,
Karachi – analysis of mobile payment security measures and different standards. – Computer Fraud & Security –
june 2007
17
Secure M-commerce Scarlet Schwiderski – Grosche; Heiko Knospe; Information Security Group, University of
London
18
BBC: http://news.bbc.co.uk/2/hi/uk_news/1966247.stm
43 - Recent technical developments and implications
Corrupting SMS messages is possible, albeit not very frequently occurring. The data is
not sent encrypted, making eavesdropping and data corruption easier.
— Authorization: Verify that the user is allowed to make the requested transaction.
Post-billing SMS, authorization is an issue; with PIN-based SMS-payments systems,
security is considerably better on this topic.
For SMS based payment systems this aspect is well covered as long as you have
reception on your mobile phone, and the battery is not flat, one can pay by SMS. For
P2P payments, this is different: the mobile device of the receiver has to meet the two
criteria mentioned before, 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, however this can be
functionally solved, but this requires extra costs.
USSD stands for Unstructured Supplementary Service Data. It is a capability of all modern
GSM phones. It is generally associated with real-time or instant messaging type phone
services. USSD is a standard for transmitting information over GSM signalling channels. It is
mostly used as a method to query the available balance and other similar information in
pre-paid GSM services. The function that is triggered when sending USSD is network
dependent and depends on what kind of services the operator has made available. Some
operators have not activated this possibility.
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, asterisks and finally the
gate or hash character ‘#’, for instance #09001234#
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), such as a
call-back service (e.g. cheaper phone charges while roaming), or interactive menu service
(e.g. stock quotes, sporting results).
Mobile payments 2010 - 44
USSD is the base of some payment methods such as SharEpay in South Africa, Mobipay in
Spain, Paysa in India, mPay in Poland and SEP in Bulgaria.
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, many of which
would be settled via payment systems based on the platform.
These trends will provide a positive impetus to the development of mobile payments. 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, SMS and NFC. Future
developments could lead to real time online banking with your mobile phone, which would
be an enabler for Point of Sale payments.
4.10.1 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.
— Handset manufacturer: produces mobile devices that support the use of Secure
Elements.
— Secure Element Issuer: personalizes the chip with the Secure Element.
— Service provider: offers services for end users, for example payments, authentication
etc.
— Trusted Services Manager: enables the service provider to use the Secure Element.
— End users: uses the services offered by service providers with Secure Element enabled
mobile devices.
It should be noted that in the market today both financial institutions and mobile network
operators play the roles of Secure Element issuers, service providers and trusted services
manager.
4.10.2 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), typically the smartcard that also
contains the phone’s subscriber identity module or SIM. 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.
— On a separate chip or smart card in the phone. 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.
— Embedding the secure element in the phone itself. This is generally the handset
manufacturer preferred option for the location of the Secure Element as it increases
the features and competitiveness of a handset and also allows the handset
manufacturer to continue to target the end consumer independent of the mobile
network operators.
There are four main options for the fulfillment of the Trusted Services Manager, as listed
below and depicted later in a GSMA provided diagram.
— 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.
— Independent entity model: An independent third party fulfils the role of the Trusted
Services Manager.
Mobile payments 2010 - 46
Figure 4-4: The four roles for the Trusted Services Manager (TMS)
— 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
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.
— 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.
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.
NFC Quick and easy Lack of availability POS only Osaifu Keitai
of NFC enabled (Japan), Visa
phones PayWave
(Guatemala)
49 - Recent technical developments and implications
SMS Available and Expensive, recipient Banking, Remittance Rabo SMS betalen
understandable to not always available (Netherlands),
every cell phone
user
USSD Available to every Not user friendly POS, Banking mPay (Poland),
cell phone user interface MobiPay (Spain)
Internet Connects to user Most phone users Banking, POS (if real
experience, worldwide are not time), Remittance
able to use it
The mobile payment market is very fragmented with many different payment services and
payment technologies. Mobile payment services include mobile parking, mobile ticketing,
mobile Point of Sales (POS), and mobile remittance. The mobile payment services are based
on different techniques like Near Field Communication (NFC), SMS or mobile internet.
The mobile payment services offered differ per region. However, 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.
In developing countries, which are underserved by the banking industry, the focus remains
on mobile money transfer via SMS. 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 some Asian countries there is a low internet penetration, a
comparatively high mobile adoption and a push by the operators to offer mobile payments
like mobile POS and mobile ticketing. In Western Europe the situation is different again as
51 - Lessons, 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.
In Western Europe mobile payments are mainly offered using SMS, but currently many NFC
based mobile payment services are being tested. Of the listed initiatives in chapter 7, 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.
Many mobile payment initiatives are still in a pilot stage. This is especially the case for NFC
mobile payment methods. The next section provides more details of the examples listed
below.
Touch&Travel (Germany),
Table 5-1: Geographical dispersion of mobile payment services, technologies with examples
For mobile parking payments two technologies are being used: NFC and SMS. Paybox in
Austria offers SMS based mobile parking tickets while NFC based mobile payments are being
offered by Payter in the Netherlands.
Paybox Austria enables consumers to pay for parking with an SMS sent from their mobile
phone. In the Netherlands, the company Payter offers mobile payments by NFC in
Rotterdam. Consumers can pay for parking by holding their mobile phone over a NFC reader
upon entering and upon leaving the garage.
In Western Europe many pilots have been launched to test NFC in relation to public
transport. Some NFC pilots only focus on transport (Touch&Travel in Germany), while other
NFC pilots also include POS payments in shops (the O2 wallet in the London Underground
mobile ticketing trial in the UK). SMS is also used as a technology to pay for public
transport tickets or for buying tickets to events. Several SMS-based services like are already
commercially available.
53 - Lessons, 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. 200 test users have the opportunity to try out a service
that is scheduled to be introduced nationwide for all rail passengers in 2010. The
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. All station platforms and bus stops will have 'touch points' installed. The
length of the journey and the ticket price are calculated at the end of the journey, and the
customer receives a regular statement of journeys made. At this moment customers get a
monthly statement with all travel data and an attached invoice. Therefore, strictly
speaking, Touch&Travel is not an example of a mobile payment initiative according to the
definition used in this report.
In the UK, Transport for London, TranSys, Barclaycard, Visa Europe, Nokia and AEG started
a NFC pilot last November called London Underground mobile ticketing. Each participant of
the trial received a Nokia 6131 NFC-enabled handset. All 500 participants have an O2
wallet, which consists of an Oyster card for paying public transport tickets and a Barclay’s
card for Point of Sale payments. Customers can top up their Oyster by touching their
handset on Oyster ticket machines in tube stations or at Oyster ticket stops. Just like a
normal wallet, the handset will hold various everyday cards, in this case Oyster and
Barclaycard in virtual form and with NFC functionality. Participants will be able to test
travelling on London’s public transport system but also making purchases in retail outlets.
Austrian railway operator OBB has teamed up with Paybox Austria, Mobilkom Austria and
ONE to offer customers tickets using their mobile phones. The OBB mobile ticket can be
purchased via SMS or through the Vodafone live! portal. Mobilkom and ONE contract
customers can pay for their tickets through their monthly phone bills.
Paybox (Austria) offers mobile POS payments (e.g. vending machines or petrol station).
Other services that are available through Paybox include mobile parking, ticketing for
public transport, tickets for (music) events, toll ticketing, and remittance (money transfer).
The services users have two payment options: using a Paybox account (direct debit on the
customer’s account) or via the mobile phone bill (only for Mobilkom and ONE postpaid
customers). The Austrian mobile operators Mobilkom Austria and ONE are the owners of
Paybox Austria.
Mobilkom has been leveraging Paybox for 3rd party content and mobile services since 2001.
As per mid 2009, Paybox has over 5 million customers and is accepted at 20,000 locations.
All post-paid subscribers are automatically enabled for the service.
The Rabobank (Netherlands) is the first Western European bank that has launched its own
mobile virtual network operator (MVNO) service, Rabo Mobiel (2006).
In 2007, Rabo Mobiel conducted an NFC trial of mobile contactless payments and is ran 19
different trials of various sizes, including payments in a supermarket (C1000), a school, a
Mobile payments 2010 - 54
fast food restaurant, vending machines, and cinema ticketing. 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.
In the Netherlands the NFC Pilot ‘Pay with your mobile phone at C1000’ was conducted in
2007 and 2008. During 6 months, one hundred customers of the C1000 supermarket in the
small town of Molenaarsgraaf could pay for their shopping by means of their mobile phone.
Customers could pay for their shopping by simply holding a mobile next to a reader at the
checkout. They then entered a PIN code as usual into the POS reader and the transaction
was complete. In addition to the possibility to pay with the mobile phone, bottle deposit
receipts could also be saved on the phone. The deposit could be deducted at the checkout,
credited to a Rabobank account, or donated to charity. The pilot was using a payment
solution that utilises the existing PIN system in which the debit card had been replaced by a
mobile phone. The pilot was an initiative of RFID Platform Nederland, LogicaCMG,
Schuitema (C1000), Rabobank, KPN and NXP Semiconductors. The initiators want to use the
pilot to achieve an NFC technology breakthrough.
In Japan, mobile payments are very advanced. 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. In October 2003, NTT DoCoMo formed a joint venture with Sony called
FeliCa Networks to develop Sony's contactless card technology, called FeliCa, for use in
mobile phones.
Through the joint venture, NTT DoCoMo has integrated FeliCa contactless technology into
mobile phones, enabling owners to access multiple applications which are currently
available through separate cards. Examples of the separate cards are:
— Suica: In July 2005, NTT DoCoMo and East Japan Railway Company agreed to jointly
promote JR East's Suica and e-money service. The Suica card is a pre-paid ticket that
can also be used in some shops to make purchases. Services available to Suica card
users were made available on FeliCa enabled handsets from end January 2006.
Currently 500,000 people use the Suica system.
— QUICpay: In July 2004, JCB, the international payment brand, AEON Credit Service,
the credit card issuer, and NTT DoCoMo jointly announced QUICpay payment solution
for cards with contactless chips. QUICpay can also be used by FeliCa enabled handsets.
Consumers make purchases by waving their handsets across payment terminals, with
the purchase value appearing on the customer's credit card.
55 - Lessons, 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. The common area has been designed for services
that require high security such as payment and ticketing, and is managed by FeliCa
Networks. For services to be enabled in this area the service provider needs to make an
application to FeliCa Networks, who in turn allocates space on the FeliCa chip for the
application. 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.
NTT DoComo invested a vast sum in promoting mobile payments. They rolled out their own
proprietary point of sales infrastructure and even purchased a bank. In 2007, 28.6% of
Osaifu Keitai compatible mobile handset owners are using the Osaifu Keitai function.
Around the globe there are numerous initiatives that enable individuals to transfer money
to each other via their mobile phones. Mostly, the transfer is conducted by SMS.
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. Obopay
charges a fee of USD 0.10 for sending money and a 2.5 percent charge for adding money
from a debit or credit card, while linking to a bank account is free of charge. Sending
money from the mobile phone can be done through SMS or mobile internet. According to
Obopay, the service helps mobile operators drive increased messaging and data traffic,
attract new subscribers, and offer an innovative, differentiated service to customers. 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.
Safaricom and Vodafone launched M-PESA, a SMS-based payment service targeting the
under-banked, pre-paid mobile subscribers in Kenya on a pilot basis in October 2005. The
full commercial launch was initiated in March 2007. Unlike mobile transaction schemes
which add a new channel to existing banking services, M-PESA is an alternative solution – it
is described and understood by the Kenyan regulators as a mobile payments system. The
mobile operator, Safaricom, provides the new account holder with a SIM card that enables
transactions using an application running in the SIM Tool Kit (STK) environment. Through
specific M-PESA agents, customers can carry out m-transactions and m-payments, and also
pay cash in and make cash withdrawals. M-PESA’s services are available only to M-PESA
account holders and certified agents; it is not linked to the clearing system. M-PESA uses a
network of agents. The agents operate a float of M-PESA value plus a cash float at each
outlet. Limiting the transaction network to M-PESA account holders and agents allows M-
PESA to avoid using a clearing system.
The rate of early adoption of M-PESA has been very encouraging. Within the first 3 months
(March 2007-June 2007) there were 111,000 registrations and 450 active agent outlets. As
of mid 2009, M-PESA had 6.5 million subscribers in Kenya conducting 2 million transactions
a day.
Mobile payments 2010 - 56
The M-PESA functionality also extends to depositing and withdrawing money at registered
M-PESA agent outlets, which are typically Safaricom dealers, but may also be other retailers
such as petrol stations and supermarkets.
In the Philippines, 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. Many mobile phones in the country are funded by pre-paid cards, which are
effectively stored value cards. It is possible to use the money stored on these cards in many
stores.
A major driver in the adoption of mobile payment services in general, is the business model
that delivers value to all players in the ecosystem. Several different business models are
possible, each with uncertain outcomes. Business models can be bank-centric (Rabo Mobiel
Netherlands), mobile operator-centric (Paybox by Mobilkom Austria, DoCoMo’s Osaifu-
Keita), independent service provider centric (Obopay US) or collaborative (Mobipay Spain,
M-Pesa Kenya).
Bank centric
The bank centric approach to mobile banking has been taking by a number of banks. One
example is the Rabobank (Netherlands) that launch transactional mobile banking services in
2003. Finding that barriers like unclear costs and a poor user experience were deterring
potential mobile banking users, the bank decided to launch its own mobile virtual network
operator (MVNO) service, Rabo Mobiel, in the Netherlands in late 2006. The advantage of
this approach is that Rabobank is in charge of the ecosystem. It can fully control the mobile
banking offering. It can for instance design the tariffs to encourage the use of mobile
banking services.
19
Not discussed in this chapter, for details see chapter 7
57 - Lessons, trends and issues from analysis of global pilots and initiatives
The acquisition of Rabo Mobiel customers is however slow. The Dutch mobile market is very
crowded which makes it difficult for any new entrant to reach a large number of mobile
phone customers. Another disappointment is the relative low number of active mobile
banking users. Only 15-20 percent of the Rabo Mobiel customers access mobile banking at
least once every three months. 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. Also, in Western European countries, established channels like ATMs,
telephone banking, and internet banking meet the needs of most customers in most
situations. Urgent banking transactions simply aren’t common enough to persuade a mass-
market audience to sign up for and regularly use mobile banking services. These reasons for
the slow adoption of mobile banking will also have a negative impact on the adoption of
mobile payments.
Mobile-operator centric
NTT DoCoMo also has an operator centric approach towards mobile banking. In 2007, 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 large uptake of NTT DoCoMo’s mobile payment service is
caused by a number of drivers. NTT DoCoMo has invested a vast sum in promoting mobile
payment and they rolled out their own proprietary POS infrastructure. NTT DoCoMo has a
large market share in Japan and can more easily establish a cooperative business model
with banks and mobile handset manufacturers. Another element that influences the uptake
is country specific: Japan has a high mobile phone penetration that has been outstripping
computer penetration for several years, the average mobile user is more likely to be using
an advanced mobile network and the up-take of mobile data services is high. Some of these
drivers of mobile payments cannot be translated to the Western European market.
However, it shows the importance of a major role in the ecosystem and using a technology
with a wide user acceptance.
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. In 2009, Nokia
invested in Obopay and began leveraging the Obopay platform for the Nokia Money service
Mobile payments 2010 - 58
that offers financial services to mobile phone users. Previously, Obopay partnered with
Verizon Wireless to have its mobile payment applications available and partnered with
Citibank to offer mobile banking services to Citibank customers.
5.6.1.1 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. An example of the
collaborative model is M-Pesa in Kenya. This example is about mobile remittance in under–
banked, developing countries. This example is very difficult to translate to Western Europe.
Offering international remittance is a specific segment on its own with many problems to
be solved. Mobile banking businesses in developing countries are mainly successful because
the countries are under-banked.
Other examples include Payez Mobile in France in which banks, mobile operators and credit
card companies joined forces, and the now defunct Mobipay in Spain that was a joint
venture by all Spanish mobile operators and 80 percent of the financial institutions.
5.6.2 Remittance
Entering the remittance market is not easy. Barriers to enter the international remittance
industry are high due to the regulatory requirements and the large undertaking to build out
the technology infrastructure. Regulation is challenging due to the complexity in dealing
with differing requirements in various 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.g. mobile phones/mobile wallets in developing countries). In a
mobile operator centric business model the mobile operators have to deal with a wide
range of financial regulatory concepts, such as Anti Money Laundering (AML) and the
Combating Finance of Terrorism regulations. 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, but
also e-money and payment regulation. Collaboration with financial intermediaries or
independent service providers with an established international payment infrastructure
59 - Lessons, 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. However, 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 under-
banked countries.
5.6.3 Technology
The type of technology used is one of the drivers for uptake and usage of mobile payment
services. Mobile internet is not yet widely adopted in Western Europe compared to e.g.
Japan. It is also unknown what the maximum mobile internet penetration will be in the
next five years.
SMS
SMS is available on all mobile handsets. It is relatively cheap and easy to use. By offering
SMS-based mobile payment services, mobile operators and financial institutions can reach
customers who don’t have mobile internet yet. The SMS capabilities can be used for basic
functionalities like bank account enquiries or SMS based payments or ticketing. In order to
reach as many potential mobile payment customers as possible, it is wise to at least use
accepted technologies such as SMS. From the mobile operators’ perspective, SMS-based
mobile banking will generate only modest mobile data traffic and revenues.
NFC
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. Past launches of data services like i-
mode and Vodafone Live! showed that customers need to have a choice of a broad range of
mobile phones, otherwise the uptake of the service is limited. Currently, only one NFC-
Mobile payments 2010 - 60
enabled mobile phone is commercially available, and a few mobile phones like (Motorola,
Sagem, and NEC) are used in pilots.
For banks, mobile payment at the Point of Sale are compelling if it is cheaper, more
effective or carries less risk than other non-cash payments. Introducing NFC mobile
payments at POS means an additional investment in infrastructure. If mobile phones
become a core payment device at POS, mobile operators could ask for a fee for the use of
their SIM “real estate”. This would dilute banks revenues on mobile payments at a POS. As
mentioned before Orange, sees a business case taking shape in the form of fees it could
charge banks, public transport operators, retailers and other service providers.
In addition to delivering value to all players of the ecosystem and accepted technologies
used, other drivers for uptake of mobile payments are the acceptance by the end users
(customers) and the acceptance by merchants. Acceptance by end-users is based on: easy
to use service, and the perception that the service is secure. Paying with a mobile phone
should add some benefits to end-users and merchants compared to existing payment
methods payments.
Contactless payment adoption faces the classic chicken and egg problem that any new
payment technology faces. On the one hand there needs to be a large base of consumers
with contactless payment devices to provide justification for merchants to add the
capability to their Point of Sale (POS) systems. On the other hand there have to be
sufficient merchants accepting contactless payments before consumers choose to adopt the
new payment mechanism. Acceptance by merchants is driven by a large addressable base of
customers for the merchants. This means there should be interoperability across different
operators and/or banks.
The Directive on Payment Services (PSD) provides the legal foundation for the creation of
an EU-wide single market for payments. The PSD offers opportunities for those involved in
mobile payments.
The PSD aims at establishing a modern and comprehensive set of rules applicable to all
payment services in the European Union, Norway, Iceland and Liechtenstein. The target is
to make cross-border payments as easy, efficient and secure as 'national' payments within a
participating nations. The PSD also seeks to improve competition by opening up payment
markets to new entrants thus fostering greater efficiency and cost-reduction. At the same
time the Directive provides the necessary legal platform for the Single Euro Payments Area
(SEPA).
After the formal adoption by the Council and the European Parliament and the publication,
the provisions of this Directive will need to be implemented by all participating nations by
1 November 2009.
61 - Lessons, trends and issues from analysis of global pilots and initiatives
— Allow non-banks to offer payment services thereby opening the market up for
competition
— 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. Under PSD regulation only one license is
needed to serve all European areas.
The situation before 1 November 2009 was that in order to gain access to payments
infrastructure, one had to obtain a license to become a credit institution (banking license
or electronic money institution license). These licenses are subject to very strict
regulations and are hard to obtain.
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.
— those who are currently perform activities that require a license under the PSD
legislation from 1 November 2009 onwards.
— non-banks that consider taking the opportunity granted to them by PSD to enter the
payment services market.
For the former group, PSD constitutes an additional set of regulations to comply with. For
the latter group, PSD constitutes an opportunity to become a payment services provider,
which was until November 1st 2009 the domain of financial institutions.
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.
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, distribution or search facilities. This means that the sale of ring tones, the
paid delivery of news headlines, weather forecasts, access to directories etc. does NOT fall
Mobile payments 2010 - 62
under PSD regulations, meaning that the provider of such services does not need a license
to continue its business. 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.
The PSD does apply however, 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).
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:
Maximum payment execution time will need to be one day once the PSD is fully in place (31
December 2012). This rather strict rule will also apply to holders of a full banking license
(who also need to comply with PSD). For mobile operators that consider setting up a
payments service, 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.
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. With this time
legally being limited to one day – this source of revenue will become negligible.
Consumer legal liability is limited to €150, the excess in liability lies with the provider.
Users should be allowed to easily repudiate consent and authorisation. Payment institutions
63 - Lessons, 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 institutions must not charge fees for the closing of accounts.
Protection of consumer funds where payment institution also engages in non payment
related activities, payment monies must be kept separate from non payment monies and
activities.
Additional remarks:
The directive allows Member States to not require a license from Payment Institutions with
a turnover of less than €3 million. In practice it means that Member States can turn a blind
eye to small payments initiatives with a turnover of under three million euro. However,
should the turnover reach EUR 3 million, PSD mandates the Member State to enforce PSD
regulations upon the payment initiative.
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.
6 Stakeholder cooperation and standardisation
There are many reasons why cooperation between key stakeholders has been difficult for
mobile payments. This chapter lists just some of the key reasons and some of the emerging
trends around cooperation.
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, namely the
financial institutions and the mobile network operators. There have been many reasons for
this lack of cooperation, some of these (in no order of priority) are:
The turn of the millennium, 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. 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. The bursting of the dot com bubble put an immediate stop to such plans and
thinking. The resulting reflection within these organisations revealed that while the
Internet makes it slightly easier to access the customer by providing another cheaper
channel, the internal and back office processes required to offer the products and services
of another vertical industry requires years of learning and experience. Fast forward to 2010
and stakeholders have realized that it is more cost effective, safer, 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, the profitable provision of
payment functionality from a financial viewpoint requires knowledge and experience in risk
management, financial compliance management and access to a merchant network; this is
core expertise of financial institutions. 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.
One of the still unresolved issues around the cooperation between mobile payment
stakeholders is the key question of customer interaction and ownership. Financial
65 - 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, cross and up sell. In a cooperative
model, 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, SIM and network by the mobile network operator.
Key to this approach is the role of the Trusted Services Manager, a role created and defined
in the context of NFC payments. 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, financial institution or mobile
network operator.
Cooperation is slowed and made difficult when each stakeholder is keen to associate and
imprint their own brand on the new payment system. 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. Current pilots are addressing this by creating a new brand
for the payment system and using existing brands of financial institutions and mobile
network operators around the individual interactions of these organisations with the
customer.
The preferred location of the mobile payment application for the mobile network operator
is the UICC or SIM. Mobile network operators are willing to give up the management of the
UICC to the Trusted Services Manager who acts as a real estate agent for the SIM. 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.
The players of the value chain must agree on basic revenue sharing principles between
industries, to avoid having different industries create different standards, which would
reduce the value of mobile payments for consumers and slow down industry development.
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.
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. Needless
to say continued cooperation between the stakeholders will be critical to the development
of mobile payments.
6.2 Standardisation
Without the creation and usage of standards for mobile payments the industry risks the
development of non-interoperable islands of pilots and solutions. Creation of such islands
will invariably lead to slower customer and merchant adoption and the survival of
inefficient solutions with higher end user costs. Open standards, not specific to any
operator or payment scheme, ensure interoperability across platforms and services, and are
critical for ensuring widespread access to mobile payment services. Without mobile
payment standards, 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.
An example from the financial domain can help to clarify this further.
In Europe within the financial domain payment solutions have been created in the past
within geographic islands, without the use of common Europe wide 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.
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). 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. The SEPA is expected to
result in a total saving of €123 billion the European Union, cumulative over 2007 - 201120.
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, severely limiting the growth of e-invoicing and the
potential saving of up to 238 billion Euros.
Similarly mobile payment pilots are being launched within Europe and around the world
using proprietary messaging, infrastructure, operational and governance protocols. As these
pilots succeed and continue to develop into live applications, interoperability will become
20
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/52&format=HTML&aged=0&
language=EN&guiLanguage=en
67 - Stakeholder cooperation and standardisation
more critical and more costly. The time to act in developing standards for the mobile
payments industry is now while live implementations are still few and far between.
Simpay
Simpay was founded by the mobile operators Vodafone, T-Mobile, Telefonica and Orange,
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. Simpay has unfortunately a notable failed attempt at
multi-national mobile network operator standardisation and was closed down in the middle
of 2005.
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.
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. The
various combinations possible will be described in section 8 of this report. The GSMA is
supportive of the UICC solution, i.e. the mobile payment application is located on the smart
card provided by the mobile network operator.
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, 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. The NFC
chip can communicate with existing contactless payment systems to deliver a wide range of
services, such as credit and debit payments. There are 52 mobile operators with 1.7 billion
customers participating in the initiative.
A number of key handset manufacturers including Nokia, Motorola and Samsung have joined
the GSMA ‘Pay-Buy-Mobile’ initiative and have given support to the payment application
residing on the UICC.
GSMA and EPC have started a formal relation in 2008 with regard to mobile payments.
OMA was formed in June 2002 by nearly 200 companies including the major mobile
operators, device and network suppliers, information technology companies and content
and service providers. The fact that the whole value chain is represented in OMA marks a
Mobile payments 2010 - 68
change in the way specifications for mobile services are created. Rather than keeping the
traditional approach of organizing activities around 'technology silos', with different
standards and specifications bodies representing different mobile technologies, working
independently, OMA is aiming to consolidate into one organisation with all specification
activities in the service enabler space. The Open Mobile Alliance (OMA) has established the
M-Commerce and Charging working group (MCC) that is also working on mobile payment-
related issues. The MCC currently has liaisons established with Mobey Forum.
Since its creation in 1988, The European Telecommunications Standards Institute (ETSI) has
produced both wireless and wired standards (e.g., GSM, DECT, TETRA etc.), as well as
standards relating to telecom, electronics and broadcasting. ETSI develops standards and
other technical documentation for telecommunications, broadcasting and information
technology. While its prime objective is to provide a forum for the industry, it also
collaborates with other organisations through various partnership projects. ETSI is officially
recognized by the European Commission and the EFTA (European Free Trade Association,
which consists of Liechtenstein, Iceland, Norway and Switzerland) secretariat.
In February 2008, ETSI announced the completion of Europe’s NFC standard, based on the
principles provided by the GSMA.
Mobey Forum
The mission of the Mobey Forum is to facilitate banks to offer mobile financial services
through the exchange of information, networking and interaction with the industry. The
main focus is on the development of sustainable business model alternatives. The Mobey
Forum membership consists of a number of large banks, technology vendors, payment
processors and mobile network operators. Several banks are already entering mobile
related services and creating solutions based on some of the work done by Mobey Forum.
Mobey Forum first stated its requirements for mobile financial services in its Preferred
Payment Architecture 1.1 document, published in 2001. Key tenets of this document were:
— 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.
69 - Stakeholder cooperation and standardisation
MoSign
The MoSign project (short for Mobile Signature) initiated by the companies Deutsche Bank,
Ericsson, Materna, Microsoft, Sema Group, Siemens and TC TrustCenter has plans to
demonstrate the deployment of electronic signatures using a ‘mobile signing device’.
A prototype mobile signing device comprised a Siemens IC35 organizer with an integrated
WAP browser and a Smart card reader. To generate a mobile signature the user inserted a
Smart card into a card slot. The digital keys were stored on the Smart card and the signing
application was based on the WAP 1.2 Crypto SignText implementation in the WAP browser
stack.
In March 2001, four German banks - Deutsche Bank, Commerzbank, 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.
NFC Forum
The Near Field Communication Forum was formed to advance the use of Near Field
Communication technology by developing specifications, ensuring interoperability among
devices and services, and educating the market about NFC technology. Formed in 2004, the
Forum now has over 130 members. Manufacturers, applications developers, financial
services institutions, work together to promote the use of NFC technology in consumer
electronics, mobile devices, and PCs.
— Work to ensure that products claiming NFC capabilities comply with NFC Forum
specifications.
— Works to ensure that products claiming NFC capabilities comply with NFC Forum
specifications.
StoLPaN
StoLPaN is an abbreviation for Store Logistics and Payments on NFC. StoLPaN’s primary goal
is to define a transparent, uniform methodology for managing multiple services, such as
payment, ticketing, access and loyalty, on an NFC-enabled mobile device, irrespective of
the handset type or manufacturer, and the support infrastructure used. A common
methodology will help to reduce the cost of launching new NFC applications by removing
the need to develop, certify and manage multiple versions of the same application. For
consumers, 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
secondary objective is to demonstrate the use of the methodology in the high street.
EMVCo
EMVCo's primary role is to manage, maintain and enhance the EMV Integrated Circuit Card
Specifications to ensure interoperability and acceptance of payment system integrated
circuit cards on a worldwide basis.
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. 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.
Recognising that important standardisation work has already been undertaken within the
industry, EMVCo intends to bridge the gap between the Near Field Communication (NFC)
technical standards, the 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.
These requirements will include a personalisation infrastructure for payment applications
and approval processes for mobile devices supporting contactless proximity payments.
In this section it has been proposed that stakeholder cooperation and standardisation are
essential to the success of mobile payments. The reasons why stakeholder cooperation has
been difficult to achieve so far have been explored and the current status of cooperation
has been examined. Also some of the mobile payment standardisation initiatives around the
world have been described. In the next section potential risks for the breakthrough of
mobile payments are discussed.
THE PAYPERS KEEPS YOU UP-TO-DATE ON GLOBAL DEVELOPMENTS IN MOBILE PAYMENTS
180
Europe North America
160
Number of mobile initiatives
120
100
80
60
40
20
0
03-2008
04-2008
05-2008
06-2008
07-2008
08-2008
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Figure 7-1: Accelarating growth of the number mobile payment pilots and initiatives worldwide.
Per initiative we will give a short description, information on type of service, technology
used, and the type of domain. In the table below we have listed the available options. Per
initiative we will also give information (if available) on cost for usage, secure element,
partners.
Voice M-Contract
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.
Mobile payments 2010 - 74
Europe
Netherlands - Rabo Mobiel: mobile banking & NFC Europe – Atlas Interactive SMS billing
North America
Canada – Everyman Cinema Club Mobile Ticketing US – Mobiqa Venue Ticketing US – Mocapay
US – Eficash US – Zong
Latin America
India – Citi NFC trial Bangalore South Korea – KTF Ubitouch Mobile Banking
Malaysia – Mobile Visa Wave Payment UAE – Standard Chartered Mobile Banking
Australia
Africa
7.1 Europe
Paybox Austria
www.paybox.at – Austria
Short description Paybox offers mobile parking (via SMS), ticketing for public
transport (via WAP or SMS), online shoppin, tickets for (music
events), mobile POS (e.g. vending machines, gas station), toll
ticketing, remittance (money transfer)
Type of service Mobile ticketing; Mobile parking; Mobile remittance; Mobile POS
77 - Mobile payment services and pilots
Secured through Paybox PIN per SMS; SMS confirmation; combination of voice call
and Paybox PIN
Additional Austrian mobile operators Mobilkom Austria and One are the
information owners of Paybox Austria. All post-paid subscribers are
automatically enabled for the service. Business customers use
paybox for corporate services.
Potential One of the bigger mobile payment players, large client base.
Subscription fee is a hurdle for diffusion.
M-banxafe
www.baseonline.be/nl/postpaid_banxafe.html - Belgium
Short description Banking transactions: payments, check the account balance and
check bank transactions. Once a potential user signs up, he keys
a payment request into his mobile telephone. The payee receives
payment details by SMS and accepts them using a PIN code.
Activating the service requires a ‘3G’ SIM card from Gemalto and
a trip to the ATM to green light it.
Cost for usage There are no subscription or connection charges: each transaction
is billed at EUR 0.25 including VAT to the customer and EUR 0.49
excluding VAT to the merchant. The amount of the transaction is
charged to the Proximus bill; the cost of the product or service is
deducted from the bank account. Costs for checking the account
balance or transfers are also EUR 0.25 per request.
Mobile payments 2010 - 78
Proximus M-Pay
http://customer.proximus.be/nl/Mpay/index.html - Belgium
Short description Proximus M-Pay is a mobile payment system in Belgium for buying
digital products online - via mobile and internet.
Domain M – Ordering
Potential For the low-value purchase segment, billing via the MNO is a
viable way to increase conversion. The costs to the merchant are
usually very high when using this method. The technology used
(WAP) excludes a large portion of the target group.
79 - Mobile payment services and pilots
Proximus SMS-Pay
http://customer.proximus.be/en/sms_Ticketing/index.html - Belgium
Short description SMS ticketing for the public transport system De Lijn in Antwerp
and Ghent.
Type of technology Users send an SMS to a short code before getting on the bus or
tram. Within a few seconds they receive an SMS with
confirmation of their ticket, which acts as proof of payment.
Secured through None, reload can be done via buying credit or upload via an ATM
(PIN code). For buying a transport ticket, no PIN is required.
Cost for usage As a promotion it's offering the first SMS ticket for free. It will
otherwise cost EUR 1.20 for the fare plus EUR 0.15 for the SMS,
which is cheaper than the EUR 1.50 paid for tickets on board the
tram. The costs of the ticket will be deducted from the call
credit or will be charged on the mobile phone bill.
Partners De Lijn
Additional For SMS ticketing with the mobile phone, Proximus M-Pay needs
information to be activated.
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. Also, the EUR 0.15 per SMS will probably
not cover the costs for retrieving the money from MNOs, who
typically charge 25-35% of the transacted amount as a fee for
collecting the money.
Ping.Ping
www.pingping.be – Belgium
Short description Belgian MNO Belgacom lauched a mobile payments trial based on
NFC-technology in Belgium in March 2009. In order to pilot the
NFC service which was added to the m-payments service,
Belgacom has partnered with Belgium food retailer Delhaize,
provider of service vouchers to companies Accor Services and
Coca-Cola. In the project with Accor Services, 500 Belgacom
Mobile payments 2010 - 80
employees have been given NFC tags which will be linked to their
mobile phone numbers. This will enable them to make
contactless payments using electronic Ticket Restaurants meal
tickets stored in their Ping.Ping accounts at restaurants equipped
with contactless readers. At present, the commercialisation of
Electronic Ticket Restaurants is not possible in Belgium due to
the lack of guidelines which regulate their use.
Domain M – Payment
Additional
information
Czech Telefonica O2
Short description Czech operator Telefonica O2 and the transport service provider
from the Czech city Pilsen participate in an NFC mobile payments
trial, running from March – December 2009.
Additional The mobile wallet displays the available bus tickets, the travel
information history, the balance of the transit e-purse and the last 4
transactions.
Short description Cinamon Cinemas customers can now buy tickets on the
company's website and opt for mobile ticket delivery. A cinema
ticket is then generated and delivered directly to the customer's
mobile phone in the form of an SMS. Cinamon's mobi-ticket
contains a unique 2D barcode as well as information about when
the film starts, the customer's seats and what screen the film will
be shown on. The barcoded message is then scanned at entrance.
Domain M-Delivery
Potential The initiative is a win-win for both recipient and issuer of the
ticket. The recipient is less inclined to forget his/her ticket, as
the mobile phone has a permanent share of pocket. The issuer of
the ticket does not need to print the actual ticket, probably
saving costs outweighing the extra costs of sending an SMS.
Mobile payments 2010 - 82
France
Short description Disneyland Paris plans to roll out an NFC and contactless card
payments pilot in October 2009. Developed in partnership with
French financial services providers Credit Mutuel and CIC, the
trial will include shops and restaurants in Disneyland Paris area.
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. The
testers' number is expected to reach 100 for NFC phones and
1,000 for contactless readers. Participants will be using a Sagem
My700x Contactless NFC phone offered by mobile operator NRJ
Mobile, which is owned by Credit Mutuel CIC. Payments will be
charged directly to the user's Crédit Mutuel or CIC bank card.
Secured through
Payez Mobile
www.payezmobile.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, for mobile POS and ticketing.
Domain M-Payment
Partners Banks: BNP Paribas, CIC, Crédit Mutuel, Groupe Caisse d’Epargne,
83 - Mobile payment services and pilots
Tag Pay
Short description Tag’n Pay is a wallet application and can be used for retail
transactions at the point of sale, money transfers, ATM cash
withdrawals and budget or savings management.
Domain M – Payment
Mobile payments 2010 - 84
Cost for usage Free of charge during pilot stage – fees will be brought in place in
case of roll out.
Partners Tagittude
MobilZahlen
www.mobilzahlen.de – Germany
Additional
information
MPay
Germany
Domain M-Payment
Technology: Paybox
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.
Domain M-Payment
Germany
Short description NFC field trial for mobile ticketing for public transport in the
region of Frankfurt am Main. RMV introduced its mobile ticketing
scheme in 2006 and is one of the pioneers in this area.
Partners The partners for this project are Nokia, T-Systems, traffiQ and
the traffic association Frankfurt (RMV). Nokia and T-Systems
partner with independent mobile retailer SMS Michel
Communication to market NFC-enabled mobile phones.
Potential This pilot is far ahead of its time. With less than 1% of all new
mobile phones produced in 2008 being NFC-enabled, this pilot
comes too soon. Estimates are that in 2011 only 4% of all new
phones will be NFC-enabled. Also ticket inspectors need to carry
specially developed devices to check the validity of tickets. It
takes deep pockets to continue a service like this with so little
prospect of wide-spread adoption. The market they aim for
(travellers) is well-picked.
StarMoney Handy
www.starmoneyhandy.de – Germany
Domain M-Payment
Secured through
Cost for usage Starmoney Handy's mobile banking service can be used after
downloading the StarMoney Mobile 2.0 Handy software. The fee is
EUR 6.00 /month, which includes unlimited free phone calls to
family and colleagues.
Additional Once they have signed a contract, customers get the StarMoney
information Mobile 2.0 Handy software for access to the banking systems of
around 4,000 financial organisations.
T-Mobile Streetgigs
http://img.pte.at/files/binary/2341.pdf - Germany
Domain M-Delivery
Partners None
Additional
information
Potential The mobile phone can play a very useful role in mitigating the
use of paper entrance tickets. The recipient is less likely to
forget his ticket, and the event organiser saves money in printing
the tickets. For free tickets (like these), the fact that tickets can
be forwarded to friends and family is an additional advantage.
Touch&Travel
www.bahn.co.uk/db_uk/view/news/20080301.shtml - Germany
Potential The initiative has assumed that NFC-phones would become widely
available in 2010. This is not the case. A technology push
product.
12Pay
Short description Austrian mobile payment services provider Dimoco has launched a
new m-payment service called 12Pay, which is aimed at business
customers.
Domain M – Payment
Additional
information
MobilFizetés
www.fizessenmobillal.hu/eme/ENindex.php - Hungary
Short description With the help of OTPdirect and Elsı Mobilfizetés Elszámoló Zrt.
(EME Zrt.) consumers can pay for their parking, can buy
motorbike and highway stickers and buy subscription to a journal
directly from their bank account or from preloaded wallet. The
preloaded wallet comes with a monthly fee, the direct deduction
from the bank account is free of charge.
Partners MNO: Pannon, T-Mobile; Bank : FHB and MPP; Technology: Enigma
Additional In September 2008, 30.000 clients were able to pay the parking
information fee with the help of their mobile phones in 16 towns all over the
country and in all the districts of Budapest.
91 - Mobile payment services and pilots
PosteMobile
www.postemobile.it – Italy
Short description PosteMobile is the first Mobile Virtual Network Operator (MVNO)
in Italy, with a software solution that allows customers of Italian
bank BancoPosta to carry out payment transactions with their
mobile phone. Both PosteMobile and BancoPosta are part of the
Poste Italiane Group. They use their position in the mobile and
banking worlds. Users send a command from their mobile phone
to pay their bills, send a telegram or a fax, top up their account
and wire money from their BancoPosta account and from
PostePay, BancoPosta prepaid or credit card.
Potential The internet penetration in Italy is among the lowest in the EU.
Therefore, the mobile phone is a suitable channel to conduct
banking business with in Italy. 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
Mobile payments 2010 - 92
Short description Beep! allows customers to pay for tickets over the internet and
then receive the ticket over SMS.
Secured through Register at Beep. The mobile phone number is the user name.
With the mobile phone number and PIN code customers can log
on the internet to order tickets.
Cost for usage Service fee, cost depend on cost of the ticket
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.
Rabobank/Rabo Mobiel also participates in NFC trails. NFC
payments using mobile phones are tested at (among others) the
fast food chain Febo. 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. The
payment is taken from a mobile wallet connected to the phone.
Domain M-Payment
Partners MVNO: Rabo Mobiel (MNO: KPN). The partner within this scheme
is multimedia company Talpa. NFC trial partners e.g.: Febo,
C1000, Diergaarde Blijdorp (Zoo).
Additional In the roadmap it is the banks vision also to use mobile phones for
information contactless payments. 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.
MVNO Rabo Mobiel had about 125,000 customers for its mobile
service in April 2008.
Potential Like all NFC-pilots outside Asia, the Rabo NFC trial suffers from
the lack of availability of NFC-enabled phones. Ironically enough,
the NFC initiative has to compete with very efficient incumbent
payment infrastructure, which Rabobank is part of. The target
group is not yet used to NFC, making widespread adoption
problematic.
Short description Rabo SMS betalen is a wallet and subscription based mobile
payment method.
Payments are sent over a secured line. At the end of the process
of making a payment, a codeword has to be inserted to confirm
the payment.
Domain M-Payment
Mobile payments 2010 - 94
Secured through
Cost for usage None for sender until 1 January 2009, after that EUR 0.05. Loading
money into the account and receiving money is free, transferring
money from account to ‘ordinary’ bank account costs EUR 0.50.
Partners Rabobank
Potential The much advertised context for Rabo SMS payment is splitting the
bill in a restaurant with friends, when typically no one has exact
change. Although this is a viable context, 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. Both companies own
50% of the stock in TSM Nordic, a trusted third party, established
for this purpose and this project.
Mobile ticketing
Domain M-Payment
MNO: TeleNor
Additional Still in pilot stages, DnB Nor and TeleNor both launch a separate
information pilot in Oslo, Norway
95 - Mobile payment services and pilots
Mobile Axept
http://www.mobileaxept.com/eng – Norway
Users can register their credit card (number, expiry date and
CVC2 security code) and connect it to their MobileAxept account.
Domain M – Payment
Partners
Additional
information
MPay Wallet
www.mpay.pl/en/ - Poland
Short description Mobile wallet application that can be accessed via USSD-
messages. The user can fund his wallet via a bank transfer (no
fees charged). At the point of sale of participating merchants,
end users can pay via their MPay wallet dialing
*145*Merchant_ID#. An IVR system will mention the transaction,
and if the end user agrees, he enters his PIN. mPay will confirm
the message that the transaction is in progress. The user can
hang up and payer and merchant both receive a confirmation of
the payment.
Domain M – Payment
Cost for usage None for the end user, for the merchant “A commission for
accepting mPay payments is very low (just a few percent) for
every transaction. It is individually negotiated and fixed by
contract.” According to mPay
Additional
information
MB Phone
www.sibs.pt/pt/mb/prodserv/mbphone/ Portugal
Short description MB Phone allows users to make online payments via WAP websites
using their mobile phones. Clients have to choose the
TeleMultibanco checkout option when paying for a product and
only provide their mobile phone number as a form of
identification, rather than bank account data. Users then receive
an SMS with a link to WAP Payments TeleMultibanco and confirm
the transaction using a TeleMultibanco short code. Customers
also receive confirmations of successful transactions via SMS.
Domain M – Payment
Cost for usage Free during trial period (until 30 June 2009)
Additional
information
www.ingbank.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.
Domain M-Payment
Potential This NFC pilot suffers from the same drawbacks as similar
initiatives: the lack of NFC-enabled phones. Even if these phones
were to become available on a wide scale, Romania is likely not
to be in the first wave op adoptors. The payment infrastructure it
is to compete with is not so efficient, so if ING succeeds in setting
up an efficient payment infrastructure, it might stand a slim
chance.
Good.bee
www.goodbee.ro/en – Romania
Short description BCR bank and Good.bee Mobile Transactions offer users access to
mobile transactions, a current account and a Visa Electron debit
card Using the debit card, users can make purchases in shops
displaying the Visa logo, withdraw money from an ATM and check
money available in the account.
Domain M – Payment
Cost for usage Starter kit: RON 26 (EUR 6), money transfer: EUR 0.35 – 0.56,
balance check: EUR 0.14 – EUR 0.21
Mobipay
www.mobipay.com – Spain
Type of service Mobile ticketing, Mobile parking, Mobile remittance, Mobile POS
www.telefonica.com/home_eng.shtml - Spain
Short description To use the mobile banking service, Telcel users are required to
change their SIM card with a special card with security settings
available at Banamex branches. By linking the phone number to
their Banamex credit card account,
Telcel subscribers can request account information, make credit
card payments and pay phone and electricity bills via SMS. The
limit for each transaction has been set at MXN 6 million (EUR
320).
Domain M – Payment
NFC Telefónica
www.sermepa.es/ingles/index.htm - 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.
Domain M – Payment
Additional
information
Presto Park&Go
www.prestoparking.com – Spain
Additional
information
Mobile payments 2010 - 102
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.
Domain M – Payment
Additional In 2009, Banco Popular Espanol had more than 80,000 mobile
information banking customers and manages around 500,000 mobile
transactions per month.
www.postfinance.ch – Switzerland
Short description Swiss bank PostFinance offers a free SMS transfer service to its
Postkonto customers.
Domain M – Payment
Additional
information
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.
Domain M – Payment
Additional
information
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.
Domain M-Delivery
Potential 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.
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
Domain M-Order
Secured through Using a secure credit or debit card transaction over Trinity's Easy
Ticket site within O2's Active Portal
Additional
information
Monilink
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.
Domain M-Banking
Secured through 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.
Cost for usage 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.
Virgin Mobile)
Payforit
Cost for usage For downloads, as well as the price of the service the customer
orders, browsing costs are charged in accordance with the mobile
operator data tariff. No additional charges for the payment as
such.
Additional First announced in March 2006, the Payforit scheme has been
information developed by the operators to promote a trustworthy and
consistent standard for paying by mobile, so that consumers can
buy with confidence when they are making one-off payments or
setting up subscription services via their phone. Initially, Payforit
will support micropayments (generally under GBP 10) for services
purchased on mobile portals, providing a quick and simple billing
option in the UK. From May 2007 Payforit has been extended to
support web transactions also, opening up new revenue streams
for many merchants. Payforit claims to provide access to over 52
million mobile phone users in the United Kingdom alone.
107 - Mobile payment services and pilots
Potential For its niche (low value payments) this solution is not unique but
very successful. Cooperation between MNOs adds to
trustworthiness. The costs to merchants are very high, limiting its
usefulness to low value, high margin products.
RingGo mobile
Type of technology Ringo uses voice calls for the ticketing service
Domain M-Payment
Secured through When the customer first uses RingGo, Cobalt will store some - but
not all - of the credit card details in a secure data vault. The
next time the customer uses the phone RingGo asks for some of
the card information.
Cost for usage GBP 0.20 – GBP 0.30 on top of the parking fee.
Potential Although the concept is good and user friendly, RingGo seems to
have trouble convincing parking authorities to enable people to
actually use the service. 7,000 transactions per month in the
most important locality is not that impressive. The growth in
transaction numbers is: it shows a rapidly growing awareness.
Mobile payments 2010 - 108
Trinity Mobile
Short description Trinity Mobile provides Mobile Tickets, Mobile Coupons, Mobile
Loyalty, Bulk Text, SMS To Email, Email To SMS and Multimedia
Messaging services
WAP
Domain M-Delivery
Partners
MoBank
Short description MoBank is a mobile banking service, which allows users to pay for
purchases, check balances. The user can register one debit or
credit card (Maestro, MasterCard, Visa or Visa Debit) to the
MoBank account.
Domain M – Payment
Cost for usage Life time membership fee GBP 15 or GBP 0.50 per transaction,
plus the MNO charges for data traffic while performing a
transaction.
109 - Mobile payment services and pilots
Partners
Additional Chance of success: only one phone, a few (big) banks, with
information 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. 0 chance
Short description With premium SMS, the consumer pays a pre-agreed rate for a
service, like downloading a logo or ringtone. The payment either
gets billed to a consumer’s monthly mobile phone bill or is
deducted from the consumer’s pre-pay account.
Domain M-Payment
Cost for usage No charge to the consumer, merchant pays an unknown fee to
M(v)NO, but typically around 25% of the transacted amount.
Potential Premium SMS is the world’s most used form of mobile payment.
The method is especially popular among merchants of and mobile
online content.
Mobile payments 2010 - 110
www.everymancinema.com – Canada
Domain M-Delivery
Partners
Additional
information
RBC Mobex
http://rbcmobex.com/ - 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.
Users can use it to send and receive money by mobile phone or
via the internet and there are no minimum balances required.
Domain M-Payment
Cost for usage For the time of the pilot, no fees are incurred to the consumers.
Partners Paybox
Additional Service highly similar to Rabo SMS betalen. Money can be sent to
information all Canadian mobile phones. In order to retrieve money, the
recipient has to subscribe to the service.
Zoompass
Canada
Secured through
Cost for usage Opening an account and receiving funds are fee of charge.
Sending costs CAD 0.50 or if linked to a credit card 3.5% of the
total transaction amount.
Additional
information
United States
They have also access to their transaction history, they can pay
bills electronically and transfer funds from one account to
another within the same bank
Payment of bills is possible to existing payees. New bill payees
must be set up in the online banking environment.
Cost for usage Wireless provider fee – no fee for service as such
Partners Firethorn
United States
Cost for usage Wireless provider fee – no fee for service as such
Short description Wachovia Mobile provides a safe and secure way for Online
Banking customers to access eligible Wachovia accounts for free.
Wachovia offers two ways to access accounts from a mobile
device: through a mobile application or through an Internet
enabled browser. The service of BankCorp South, First Bank,
Region’s Finance and SunTrust Banks are exactly similar.
Cost for usage Wireless provider fee – no fee for service as such
Partners Firethorn
www.bankofamerica.com/onlinebanking/index.cfm?template=mobile_banking – United
States
Short description Bank of America has launched the 'Bank the Way you Live' online
banking micro site. The micro site features information on tools
that allow its customers to control and manage their personal
finances online, via mobile handset or smart phone.
Domain M-Banking
Cost for usage Mobile Banking service is free. Customers will be charged mobile
access rates.
Partners
Additional With Mobile Banking from Bank of America, customers can use a
information mobile phone or smart phone to access balance information, pay
bills, transfer funds and find nearby ATMs or banking centres.
Bank of Stockton
Short description Bank of Stockton provides its online banking customers with an
additional channel to do their banking business: the mobile
phone. The system is based on text messaging and users can
check their balances, make transfers between own accounts and
transfers between accounts of the same bank.
Secured through PIN number that has to be sent along with every command.
Cost for usage Wireless provider fee – no fee for service as such
Partners ClairMail
Boku
Short description Boku is a payment method for online purchases. Soon after
launch of the service, Boku acquired competitors MobilCash
and Paymo. At the merchant’s website, users click on the
"Pay by Mobile" button and enter their phone number as
well as their mobile provider. Once the purchase is made,
the system sends an SMS asking for confirmation, to which
the customer must reply by texting “Y” (for “yes”). The
transaction is thus completed and the charge will be
included in the monthly bill. No registration is required.
Boku has closed agreements with 170 mobile carriers in 50
countries, reaching a potential market of 1.6 billion
customers.
Type of service Mobile payments
Secured through
Cost for usage Businesses pay 30%-40% of the transaction value. Consumers pay
the price of a SMS.
Partners
Additional
information
Mobile payments 2010 - 116
Short description Citi Mobile customers can review balances and transactions,
transfers funds among accounts, pay bills, search for City
branches and automated teller machine locations, or connect to
Citi’s customer service centres.
Domain M-Banking
Cost for usage The service is for free although customers have to pay data
download charges from the mobile operators.
Short description FirstBank's Mobile Banking service: view account balances and
transfer funds.
Domain M-Banking
117 - Mobile payment services and pilots
Cost for usage FirstBank does not charge any fees for mobile banking.
Connectivity and usage rates may apply.
Cost for usage Wireless provider fee – no fee for service as such
Partners
Additional Huntington Bank has hit its annual mobile banking target in two
information months. Following its launch of mobile banking service in 30
June, Huntington hit eight times its monthly usage goal in July
Mobile payments 2010 - 118
The bank reached its eight months target in the first four weeks
after the service’s launch. Huntington has 1 million retail banking
customers, of which 50 percent bank online. Huntington says its
mobile banking service’s success is the effect of a marketing
campaign, which includes ads on its home page, within its online
banking section, on its ATMs and enclosed marketing material
sent with paper statements. Huntington Bank is an USD 56.1
billion-asset regional bank based in Columbus, Ohio, US.
IBC Bank
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. After
downloading the application to their phones, customers are able
to see current balance information. They have also access to
their transaction history, they can pay bills electronically and
transfer funds from one IBC account to another. The service is
compatible only with phones on the AT&T and Sprint networks
and is provided by mobile financial services provider mFoundry.
Cost for usage Wireless provider fee – no fee for service as such
Partners mFoundry
The arenas will begin delivering event tickets using the new
Tickets@Phone ticket delivery method. On top of receiving their
ticket onto their phone, customers of the three arenas also
benefit from Tickets@Phone’s instant delivery. Venues’
customers can now buy mobi-tickets for the events taking place
at the three venues from tickets.com. A mobi-ticket is generated
and delivered directly to the customer's mobile phone in the form
of a SMS. A mobi-ticket contains a unique 2D barcode message
which is scanned at the entrance, as well as information about
the event.
Domain M-Delivery
Mocapay
Domain M-Payment
Partners
Obopay
Secured through
Cost for usage Obopay charges a fee of USD 0.10 for sending money and a 2.5%
charge for adding money from a debit or credit card, while
121 - Mobile payment services and pilots
Potential
Payment BuyVoice
Short description Payment BuyVoice lets merchants accept credit cards anywhere,
anytime - with the ease of voice and simplicity of any phone. No
terminal is required; merchants can process payments using any
telephone at hand.
Domain M-Payment
2008.
PayPal Mobile
Short description The mobile version of the well-known PayPal payment method.
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. After every transaction initiation, the consumer
is called back via an automatic voice response system, which asks
for the PIN-code. After inserting the PIN, the transaction is
validated.
Potential PayPal Mobile offers the online PayPal proposition to the mobile
channel. For person to person payments, the service is more
expensive than competing services like Obopay. On the other
hand, PayPal already has a potential customer base of 150 million
users who already have a PayPal account.
123 - Mobile payment services and pilots
P2P Cash
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.
Domain M-Payment
Partners none
Synovus
Short description Synovus customers will have the ability to check account
balances, transfer funds and view and pay bills from one seamless
platform via cell phones or other mobile devices. Initially,
Synovus will offer the mobile banking service to a subset of its
customer base with a broader rollout planned for later in the
year.
Cost for usage Wireless provider fee – no fee for service as such
Partners Firethorn
Wachovia Mobile
Short description Wachovia Mobile provides a safe and secure way for Online
Banking customers to access eligible Wachovia accounts for free.
Wachovia offers two ways to access your accounts from your
mobile device: through a mobile application or through an
Internet enabled browser.
Domain M-Banking
Partners None
Short description The Wells Fargo Mobile service enables you to connect to your
eligible Wells Fargo accounts via the mobile web or text
125 - Mobile payment services and pilots
Cost for usage Wireless provider fee – no fee for service as such
Partners None
Wells Fargo was the first bank to offer online banking accounts in
1995.
m-Via
Short description m-Via allows users to make international money transfers via any
mobile phone from the US to Mexico, South America and the
Phillipines using a concierge-type service. m-Via will only be sold
via wireless retailers in the US starting from January. On top of
mobile remittances, users will also be able to top-up their
prepaid accounts as well as pay their bills.
Domain M – Payment
Additional
information
www.commercebank.com/personal/online-services/mobile-banking/
- United States
Short description The service enables its current online banking users to use web-
enabled handsets to view account balances, view recent
transaction activity as well as transfer funds between personal
checking, savings and money market Commerce Bank accounts.
Users may also transfer funds from a personal deposit account to
a Commerce Bank personal loan or credit card to make a
payment. Moreover, clients can transfer funds from a personal
line of credit to a personal deposit account.
Domain M – Payment
Additional The service is only available for customer who also participate in
information Commerce Bank online banking
SizzleMoney
Short description SizzleMoney is a mobile stored value product that enables mobile
(cellular telephone) money access, payments and sharing.
SizzleMoneyTM employs an SMS-based mobile technology that
works on any cell phone and on most cellular networks. The
127 - Mobile payment services and pilots
Domain M – Payment
Cost for usage A plethora of fees applies. Monthly fee of USD 0.99, making
deposit USD 0.49, balance inquiry USD 0.99, ATM Withdrawal USD
1.49, overdraft fee USD 10.00, P2P payment USD 0.49 for both
Additional
information
Zong
Type of SMS
technology
Domain M – Payment
Cost for usage None for consumers; for merchants: carriers take 25-45% of the
transaction as fee. On top of that, Zong takes 5-10% of the
transaction as a fee.
Partners
Additional Zong claims the high fee (30 – 55% of transaction value) is justified
information because of the high conversion rates these kind of payments have.
More people leave the sales funnel prematurely because of the
difficulty of the payment method. Making this easy increases the
share of people in the sales funnel that actually buys and pays for
the product.
United States
Short description The Eagle Eye Vouchering service will enable retailers to issue
mobile vouchers to customers (promotional, gift, and loyalty)
either via standard SMS text messages or directly to NFC-enabled
mobile phones. Retailers can use the Eagle Eye Mobile Interactive
(Mi) Voucher Redemption System to identify and transact the
vouchers. This will provide retailers with straight-through
processing and campaign tracking, allowing them to create
return- on-investment calculations.
Domain M – Delivery
Cost for usage None for consumers, for retailers not dislosed
129 - Mobile payment services and pilots
Additional
information
Chase Mobile
www.chase.com/index.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. Is has been optimised for the phone's Web
browser so one can bank anywhere the phone goes.
Domain M – Payment
Partners
Zala
Mobile banking
Domain M-Payment
Secured through
Eficash
Short description Eficash is a mobile based e-wallet service for banks and mobile
operators in the US and Latin America.
Additional
131 - Mobile payment services and pilots
information
www.bancofrances.com/tlal/jsp/ar/esp/individu/servicios/bancamovil/index.jsp -
Argentina
Short description Banco Francs provides its online banking customers with an
additional channel to do their banking business: the mobile
phone. The system is based on text messaging and users can
check their balances, make transfers between own accounts;
monitor the progress of cheque processing, pay bills and transfers
between accounts of Argentine banks.
Cost for usage Receiving alerts: ARS: 0.14 (EUR 0.03), for making transfers ARS
0.30 (EUR 0.07), both excluding taxes.
www.e-galicia.com/portal/site/eGalicia/menuitem.ac8b11d3a58b347fbdcfd986122011ca
- Argentina
Short description Banco Galicia, an Argentine e-bank, offers it’s customers the
possibility to do online banking business via their mobile phone.
First, consumers have to subscribe to the service by attaching
their mobile phone to their online bank account. This must be
done in the customers’ online banking environment (after logging
in). A link to an application will be sent to the registered phone,
Mobile payments 2010 - 132
Banco Río
www.santanderrio.com.ar/individuos/canales_mobilebanking_ppal_1.jsp - Argentina
Short description The SMS banking service permits customers to manage their bank
account via their mobile phone. By sending a text message,
customers can make payments, money transfers and check the
balance of their account(s). For mobile banking, one needs an
online banking account at Santander Río bank and a cellphone
capable of sending and receiving text messages.
Cost for usage Depends on the mobile network operator. For Personal
customers, receiving SMS is free, sending an SMS costs ARP 0.35
(EUR 0.09) excluding taxes.
For Movistar customers, both incoming and outgoing Río SMS cost
ARP 0.15 (EUR 0.04).
M-Cash
http://mcash.com.br – Brasil
Short description M-Cash enables clients to purchase products in retail stores with
the mobile phone or through the Internet.
Domain M-Payment
Partners The initiative has been launched in partnership with the company
M-Cash and Albatroz Participações (a private equity firm).
Oi Paggo
www.novaoi.com.br – Brazil
Short description Oi Paggo is a credit system that allows clients to shop through
their cell phones via SMS.
Domain M-Payment
Cost for usage Client does not pay annual fee but the client does pay BRL 2.99
(EUR 1.00) on the months he/she utilises the service. There is no
SMS cost and the short messages sent for the transactions do not
consume pre-paid cell credits.
Potential Although the monthly fee seems high, there is a definite need for
the service in Brazil. Mobile remittance is a service especially
used by unbanked people. Many of Brazil’s 200 million
inhabitants are unbanked, creating a perfectly feasible market
for the service.
The fact that more than 40,000 merchants also accept this means
of payment, is almost unprecedented.
Samba 38
www.samba38.com - Brazil
Domain M – Payment
Additional
information
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. The 6-month pilot was
developed in partnership with Compania de Procesamiento de
Medios de Pago (Visanet Guatemala), Industrial Bank and Uno
Bank and is expected to include around 200 Visa cardholders. The
pilot is the first Visa payWave trial in Latin America and the
Caribbean and the company plans to launch future pilots, to
provide value-added functions, including mobile account
management, as well as mobile alerts and coupons.
Domain M-Payment
Secured through
Cost for usage No charge to the consumer, merchant pays an unknown fee
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. Once
registered, users can pay by calling the *98 short number and
typing in the unique code and amount of the purchase. Visanet
then sends a SMS to the buyer's and the seller's mobile phones, to
confirm the purchase has been charged to the Visa card.
Secured through
Additional
information
Diemo
www.diemo.mann-india.com/english/index.html - Venezuela
Short description Venezuelan start-up company Diemo has teamed with provider of
service to MVNOs XIUS-bcgi, a division of Megasoft, to launch
mobile banking with GSM network provider Digitel. Diemo is short
for Dinero en Movemiento (Money on the move).
Domain M-Payment
M-Paisa
Afghanistan
Short description Vodafone and Afghan mobile operator Roshan have launched a
mobile payment system. M-Paisa, is built on Vodafone's M-Pesa
service in Kenya. At launch the Afghan service will, however,
have a significantly different focus from the Kenyan version.
Initially M-Paisa will act as a vehicle for microfinance institutions'
(MFI) loan disbursements and repayments, with an additional
range of business to business. Consumer person-to-person
transactions will also be available, enabling those MFI clients and
employees who have received their money via M-Paisa, to use the
service.
Type of technology Voice. Roshan and Vodafone are trailing interactive voice
recognition services which, when launched later in the year, will
enable greater use of M-Paisa by consumers who might otherwise
be excluded due to high illiteracy rates in Afghanistan
Domain M-Payment
Secured through
Partners
Mobile payments 2010 - 138
Potential Although the use of the mobile phone for financial services
becomes increasingly popular in third world, the M-Paisa service
has a very narrow scope. Also the illiteracy rate in Afghanistan
can constitute a problem.
SMART MTC
Bahrain
Short description Bahra and Smart work in partnership with MTC Vodafone Bahrain
and a leading bank in the Middle East. Through the Smart Services
Hub, Filipino migrants and contract workers can remit funds back
to the Philippines using their mobile phones. Smart also sees the
need for a global hub that will be interoperable with the Smart
Services Hub. As part of the GSMA program, Smart plans to launch
a pilot project with MasterCard as an authorisation, clearing and
settlement partner.
Domain M-Payment
SSL Wireless
Bangladesh
Short description SSL SMS Banking is a service that enables Bank's customers to
139 - Mobile payment services and pilots
Domain M-Banking
Wing Money
www.wingmoney.com/en/company-profile - Cambodia
Short description WING is a mobile phone enabled payment service that allows
customers and businesses to transfer, deposit and withdraw
money between each other via their mobile phones. The
Cambodian initiative was launched by ANZ Banking group and is
Mobile payments 2010 - 140
Domain M – Payment
Partners
Additional
information
EasiRemit
Domain M-Banking
Secured through
Additional The beneficiary also enjoys the convenience of having the money
information credited immediately to his bank account in China, instead of the
usual three to five days’ waiting time that conventional
141 - Mobile payment services and pilots
UMPay
www.umpay.com/englishumpay/index.htm – China
Cost for usage Depends on technology used and financial services provider
Additional The service ONLY works for China Mobile subscribers – over 450
information million in number. The different UMPay services claim to have an
aggregated amount of 100 million users.
Ali M-Pay
www.alipay.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.
Domain M – Payment
Additional
information
mChek
www.mchek.com - India
Domain M-Payment
Partners
Additional
information
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.
Domain M-Banking
Partners The banks that have currently tied up with Obopay are, Kotak
Mahindra Bank (KBL), Development Credit Bank (DCB), and Yes
Bank (YES).
Additional
information
Oxicash SmsPay
www.oxicash.in – India
Short description OxiCash enables users to buy recharge PINs for a multitude of
services such as Prepaid Mobile Phones, Tata sky and DishTV
recharge coupons, Telephones, Electricity and Water bill
payments, Air –Rail –Bus tickets, shop online for apparels, etc.
OxiCash users can also pay in remote places without GPRS.
Oxicash acts as a prepaid wallet.
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
Mobile payments 2010 - 144
Domain M-Payment
Cost for usage Free for consumer, merchant charges not disclosed
Partners Oxigen
Potential 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, but at the POS, mobile payments in a country that
has not yet gotten used to cards, might very well be a bridge too
far.
http://www.statebankofindia.com/viewsection.jsp?lang=0&id=0,1,21,691 – India
Domain M-Banking
Additional Three wrong MPIN entries will block the MBS to the account for
information the day and two consecutive blockages will remove the data from
the mobile banking application in the handset. The customer will
145 - Mobile payment services and pilots
The upper ceiling per transaction limit shall be Rs. 5000.00 (EUR
100) within an overall calendar month limit of Rs. 25,000.00.
(EUR 500)
Pay Anyone
www.yesbank.in - India
Short description Pay Anyone is a cooperation between Yes Bank and American
Obopay. 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.
On top of money transfers, the new service enables users to book
tickets and pay for mobile top-ups, among others. At present, the
bank offers its clients a mobile payment service called 'Person to
Person', which gives Yes Bank customers the possibility to send
money only between Yes Bank accounts through Obopay’s mobile
payment service.
Yes Bank currently has 5,000 customers who are using the bank’s
mobile payment services throughout the country.
Domain M – Payment
Cost for usage Free during trial – remittances against a fee, not disclosed
Additional
information
India
Short description An NFC trial where trial users are equipped with NFC-enabled
phones to make purchases and to pay for public transport. The
Mobile payments 2010 - 146
Additional
information
www.online.citibank.co.in - India
Short description The Citibank M-Banking India solution allows customers to view
account details, transfer funds, pay bills and make requests.
Domain M – Payment
Additional
information
147 - Mobile payment services and pilots
PayMate India
Short description Indian mobile payments provider PayMate enables its clients to
send and receive money, pay for retail purchases, monthly utility
bills, flight & movie tickets.
The system can also be used to pay bills. Via PayBill’s SMS-based
service, subscribers are able to pay utility bills, pay for movie
and flight tickets and make person-to-person money transfers.
Domain M – Payment
Additional The transaction limit is IRS 2,000 (EUR 30). Paymate plans to add
information P2P remittance to the service. The service is available for
customers of 14 banks in India, 1 bank in Sri Lanka and 1 in
Nepal. The service can be used to pay online as well as to pay at
13,000 merchants on the Indian subcontinent.
FeliCa Mobile
www.nttdocomo.com – Japan
Short description The Osaifu mobile phone can be used as a wallet, credit card, ID
card or a key to the home. Users can check their credit balance,
point totals, and purchase history on the mobile phone screen,
Mobile payments 2010 - 148
Domain M-Payment
www.kddi.com/english/value/au/index.html - Japan
Short description 'Osaifu Keitai', is a service compatible with 'EZ FeliCa'. The mobile
phone service ‘EZ FeliCa’ uses ‘FeliCa’ non-contact IC card
technology for applications such as ‘QUICPay’ mobile credit,
‘Edy’ electronic money, and East Japan Railway's ‘Mobile Suica’
fare collection service, turning KDDI au mobile phones into
mobile wallets.
Domain M-Payments
Partners
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, NTT DoCoMo, and Softbank), internet, and phone
(IVR/operator) banking. Users will be able to make payments to
the accounts of anyone in their mobile phone’s address book, as
well as shop online with their handsets. In the future, the service
will include foreign currency deposits, credit card services and
insurance offerings. The company has been accepting
applications since August 2008.
Additional The aim is to reach 2.4 million account holders by the third year,
information and 3.4 million in the fifth year as well as JPY 1.5 trillion (EUR
10.7 billion) in deposits.
S! FeliCa
http://mb.softbank.jp/mb/en/service/advanced/sfelica/ - Japan
Partners Softbank
Additional
information
Viva M-Pay
Kuwait
Short description Viva offers users access to services such as top-up, bill payments,
money transfers, mobile banking and international remittances.
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.
Domain M – Payment
Cost for usage Opening account is free of charge, other fees not disclosed
Additional
151 - Mobile payment services and pilots
information
DiGi Remit
www.digi.com/my - Malaysia
Domain M-Payment
Cost for usage The fee starts at MYR 8 (EUR 1.64) for all the three countries,
depending on the mode of delivery in the receiving end.
Partners Citibank
Additional The service was launched in October 2007 with Citibank. With
information two text messages users can complete a transfer. Digi Remit
wallets can be topped up at authorised outlets across Malaysia or
via Giro transfer from any bank account. Remittances can be sent
to anyone in the destination countries, with or without bank
account.
Malaysia
Short description In the pilot, participants will be issued with a Nokia 3220 phone
pre-programmed with their regular Maybankard Visa Wave card
information. It operates as a standard mobile phone connected to
the Maxis network, but with the built-in Visa Wave function, it
can also be used to wave and pay at Visa Wave merchants.
Mobile payments 2010 - 152
Domain M-Payment
OneSMART PayPass
Malaysia
Domain M-Payment
Cost for usage No charge for the consumer. Merchant charge not dislosed
Maxis FastTap
www.maxis.com.my – Malaysia
Short description Malaysian mobile operator Maxis, Nokia, Maybank and Visa have
launched the Maxis FastTap NFC m-payment service.
Domain M – Payment
Mobile payments 2010 - 154
Additional
information
http://technology.cgap.org/category/projects/mongolia-xacbank/ - Mongolia
Additional The initiative was announced in July 2008, but has not been
information established yet.
Mobilink Genie
www.mobilinkgsm.com/genie/index.php - Pakistan
Short description Mobilink Genie is Pakistan’s first service to offer the ability to
pay bills, while on the move. Mobilink Genie ties the consumers’
credit card and bank account to their Mobilink connection.
Domain M-Payment
Secured through Consumer number, Genie PIN and bank card PIN
Cost for usage For downloading the application, standard GPRS rates apply, as
well as standard SMS fees.
G-Cash
www.g-cash.com.ph/main.aspx?rand=192 - Philippines
Short description Globe Telecom, its subsidiary G-Xchange and global money-
transfer services provider Western Union will join forces to
introduce the GCash cross-border mobile money transfer service
in the Philippines to support low-principal, high-frequency
remittances.
Domain M-Payment
Cost for usage Minimal charge of PHP 1.00 (EUR 0.02) per GCash transaction
Mobile payments 2010 - 156
Partners None
SMART Money
Philippines
Short description It is a facility for linking the subscriber’s mobile phone with an e-
money ‘cash’ account that is accessible from the mobile. The
functionality allows a user to deposit cash, withdraw cash or top
up the phone’s prepaid credit levels, from that ‘cash’ account or
other bank accounts. Loading physical cash onto the SMART
Money account can be done at SMART’s m-banking partner Banco
de Oro branches, SMART Wireless Centres or SMART Padala
outlets. The customer can also transfer prepaid credit or cash to
another user. RheSmart money cars can used as a debit card to
pay for goods and services at retials hsops and restaurants or to
make withdrawals from ATM’s. The service allows users to
transfer cash from one Smart Money card to another, also abroad.
Domain M-Payment
Cost for usage 1% of transacted amount with a cap of PHP 50,000 (EUR 800)
Additional
information
157 - Mobile payment services and pilots
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. 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, internet banking, remittance centres,
cash deposit machines, over-the-counter transactions at NCB
branches and fund transfers via the bank's ATMs.
Domain M-banking
Secured through
Additional
information
EZ-link
Singapore
Short description EZ-link card has been integrated into mobile phones in Singapore
since September 2007, 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
Domain M-Payment
Secured through
Additional This launch of one of the largest public trials of such mobile
information payment technology, kicked off October 2007.
SingTel
www.singtel.com - Singapore
Domain M-Payment
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. The service allows
users to open a coupon on their NFC-enabled phones and flash it
to a NETS FlashPay reader for automatic redemption.
M1 Mobile Payments
http://m1.com/sg/M1site/M1Corp - Singapore
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.
Domain M – Payment
BankOn
Short description In 2003. Kookmin Bank and LG Telecom began providing banking
services via mobile phones, Called Bank On. The Bank On service
enables Kookmin Bank customers to transfer and withdraw funds,
view account balances, as well as pay transportation fares
through their mobile phones.
Domain M-Payment
Cost for usage Fee: A/C transfer to other banks: 500 Won
K-merce
Domain M-Banking
M Payment
Partners
Additional
information
161 - Mobile payment services and pilots
Moneta
Short description As a wired and wireless, integrated, total financial service that
can be conveniently used via the web or mobile phone, Moneta
provides a wide diversity of useful finance-related content and
information on stock trading, financial investment and insurance.
Moneta also offers users the individually-tailored services and
advice of financial experts.
Domain M-Payment
Secured through For mobile banking: a 3-tier security system using PIN numbers,
account numbers and security card information provides extra
safety.
Additional The Moneta card is a service that enables you to conveniently and
information safely pay for items and services by means of a chip attached to
the cell phone that contains all the functions of credit,
transportation, membership and cash cards. One single chip
handles all the functions of a credit card, e-cash, transportation
card and membership card. Moneta Bank is a mobile financial
service that allows you to complete various financial or banking
transactions as you would with a cash card, credit card or e-cash
by means of a mobile phone equipped with an IC chip. The
Moneta IC chip is attached to a mobile phone and has post
payment transportation card functions for use with mass transit
in Korea.
South Korea
Short description In the pilot, participants will be issued with a Nokia 3220 phone
pre-programmed with their regular Maybankard Visa Wave card
information. It operates as a standard mobile phone connected to
the Maxis network, but with the built-in Visa Wave function, it
Mobile payments 2010 - 162
Domain M-Payment
Additional Banks have been issuing combined payment and contactless cards
information for several years, and one in four Visa cards In Korea has a transit
application, Manners says. Among results to date are a 27% higher
activation rate, 9% increase in POS spending and a reduction in
dormant merchants.
Short description Korean operator KTF will launch its UbiTouch mobile banking
service. It is a one-chip solution enabling access to multiple
banks. Ubitouch is connected to the user’s credit card. Initially,
the service will be available for all seventeen domestic banks,
except Shinhan Bank.
Domain M – Payment
Cost for usage None charged by MNOs. Use is subject to normal charges from
financial institutions. Download of the application is free
Taiwan
Advanced MPay
www.mpay.co.th/web/CT_what_general.html - Thailand
Short description Advanced mPay offers mPAY, a mobile payment system that
enables the clients to pay bills, buy movie tickets, online music,
and games. It allows its clients to pay for products and services
using mobile wallet mCASH, as well as credit card or direct debit.
Domain M-Payment
Additional Advanced MPay is a 70:30 joint venture firm between the Thai
information cellular market leader Advanced Info Service and Japan’s NTT
DoCoMo.
TMB M-Banking
www.tmbdirect.com - Thailand
Short description Through TMB M-Banking, clients can view account summary that
dates back as long as nine months as well as monitor their
accounts. Other features include cross-account and cross-bank
money transfers. At the user’s request, SMS alerts can be sent to
inform the client when a money transfer is completed. Moreover,
TMB M-Banking clients can pay bills for various services and
products such as credit card, electricity bills and mobile phone
bills.
Domain M-Banking
Cost for usage No charge to the consumer, merchant pays an unknown fee
https://ebank.kasikornbank.com/kcyber/login.html - Thailand
The service enables bank users to upload their Visa accounts onto
the Nokia 6212 handset which contains Visa’s payWave
contactless application. This will allow Kasikornbank customers
participating in the trial to make purchases at more than 1,000
payWave merchant locations in Thailand. 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).
Purchases will be charged directly to the customer’s
Kasikornbank Visa credit card account. The Visa payWave-enabled
transactions are protected with the same security layers used for
all Visa transactions. On top of contactless payments, the Visa
payWave platform offers over-the-air personalisation, coupons
and direct marketing.
Domain M – Payment
Cost for usage Free during trial period (until 30 June 2009)
Additional
Mobile payments 2010 - 166
information
Turkey
Short description Turkey's national card switch and clearing centre BKM
(Bankalararasi Kart Merkezi - Interbank Card Center) is planning a
January launch for a year-long pilot of an independent near-field
communication (NFC) infrastructure, with nine banks and two of
the country's three mobile operators already on board. BKM will
act as the Trusted Services Provider.
Domain M-Payment
Additional The trial is the second NFC trial in Turkey, but the first to aim at
information interoperability between different banks and different mobile
network operators.
Turkcell
Turkey
Short description Turkcell and Garanti Bank have launched on January 16, 2008 a
Near Field Communication (NFC) trial for mobile payments.
Domain M-Payment
MNO: Turkcell
Card: MasterCard
Additional In the trial, some 100 Turkcell and Garanti employees and
information customers will be provided with an NFC-enabled mobile phone.
Some 3,000 merchants already have a contactless card terminal
and are also able to accept mobile NFC payments.
Short description Dubai bank mobile banking allows Dubai Bank internet banking
customers to do their online banking on their mobile telephones.
The adjusted online banking website is now available via mobile
internet. The service is a first in the UAE. The log-in procedure is
similar to online banking, using username/password.
Domain M-Banking
Partners None
Short description In May 2009 the two parties started a six-month NFC trial in
Dubai. Consumers link their credit card to their NFC enabled
Mobile payments 2010 - 168
Secured through
Additional
information
Short description The service works with all mobile phones and enables users to
view bank account and credit card details, transfer funds and
top-up mobile phone credit, among others. The service comes on
the heels of an upgrade to its I-banking application.
Domain M – Payment
Short description UAE-based bank Mashreq has launched a mobile payments service
in the UAE with Indian mobile commerce company PayMate.
To use the service, Mashreq bank clients will need to make a one-
time registration to link their existing bank accounts or credit
card accounts to their mobile number.
Domain M – Payment
Additional
information
Mobile payments 2010 - 170
7.5 Australia
Mobile Queensland
www.boq.com.au - Australia
Short description Bank of Queensland (BOQ) has made their online banking portal
available for mobile phone users, allowing them to use iPhone or
any mobile device with an SSL-capable browser. No personal
details are stored on the customer's mobile device.
Partners Sandstone
www.telstraenterprise.com – Australia
Domain M-Payment
7.6 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.
Domain M – Payment
Additional
information
txtNpay
www.textnpay.net – Ghana
Short description
Domain M – Payment
Cost for usage Next to MNO-dependent SMS and data exchange charges, fees
apply for opening an account as well as making a transaction. The
exact fees are not disclosed, and only available upon opening an
account in Ghana.
Additional
information
TextNpay plans on making international P2P money transfers out
of Ghana available to consumers in due time. P2P money
transfers into Ghana are already available.
Orange Money
Secured through
Cost for usage The deposit of money has no fees attached to it.
To withdraw money and transfer money, costs are 200 XOF for
withdrawals/transfers up to XOF 2,000 to 3,000 XOF for
withdrawals/transfers up to XOF 100,000. For a complete
overview of fees: www.orange.ci/omoney/cashinout.php
Additional Orange plans to roll out this service to other African countries,
information Mali and Senegal are the first to follow.
Mobile payments 2010 - 174
Eazzy 24/7
www.equitybank.co.ke/ - Kenya
Short description Sms Banking allows customers to access limited services via the
mobile phone. Customers can also top up their mobile phone with
the new Equi-sms banking Top up Service.
The target group is any of the clients with a phone who are
looking for convenient banking - Small business owners,
individuals, account holders, non-account holders looking for
convenient access to their bank account.
funds transfer
order of statements
Domain M-Payment
Cost for usage Transfer from EBK account to EBK account: KES 50 (EUR 0,50)
Additional Launched in September 2008. Equity Bank Kenya has 2.6 million
information customers who have 4.5 million accounts countrywide.
175 - Mobile payment services and pilots
www.co-opbank.co.ke/Main-Site/Home/Personal-Banking/Electronic-Banking/Mobile-
Banking- – Kenya
Type of SMS
technology
Domain M – Payment
Partners
Additional
information
M-PESA
www.safaricom.co.ke/m-pesa - Kenya
Domain M-Payment
Withdrawing cash costs between KES 25 (EUR 0.25) and KES 170
(EUR 1.72) with the size of the withdrawal varying between KES
100 and KES 35,000.
www.standardchartered.com/ke/personal-banking/electronic-banking/m-banking/en/ -
Kenya, Tanzania
Short description The service allows bank customers to check their bank balance,
view a mini bank statement for their last 3 transactions, change
their PIN, request bank statements, transfer funds between
personal accounts and nominated accounts, pay utility bills,
enquire on FX rates, top-up their mobile phone balance and
request a cheque book.
Domain M – Payment
Additional
information
Zain M-Wallet
Short description Mobile operator Zain partners with international banks including
Citigroup and Standard Chartered Bank to launch its Zap m-
banking in Kenya, Tanzania and Uganda.
Cost for usage Opening account is free of charge, other fees not disclosed
Additional
information
Short description Via Mi-Pay's online and mobile international remittance service,
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.
Domain M – Payment
Additional
information
Short description Customers registered for FNB's cellphone banking can use Cell Pay
Point to purchase goods online directly from any of their
transactional accounts. Users can use Cell Pay Point on any of the
registered merchants' websites.
Consumers will have to wait for broad access, as the Cell Pay
Point solution requires vendors to sign up with the bank before
the service is available on their website.
Domain M-Payment
Cost for usage Free for customer, merchant fee not disclosed by FNB
MTN banking
Type of technology WAP / Internet - Mobile Money is a full bank account. It can be
managed remotely via Internet or Mobile.
Domain M-Banking
Cost for usage Bill payment and money transfers to other banks accounts
generate transaction fees of ZAR 3 (EUR 0.24). Airtime or
electricity purchased is free of charge.
Partners MTN banking is developed by MNO MTN and the Standard Bank.
POC it
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, request, pay money, buy
airtime and pay medical bills.
Domain M-Payment
Additional Only one account can be stored on one mobile phone. The use of
information multiple POCit accounts is not allowed.
SWAP Mobile
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, is faster than SMS and allows for
real time interactive communications between customer
cellphones and the SWAP system.
Domain M-Payment
Cost for usage Free for consumer, merchant pays the following fees:
There are some notification fees,(ZAR 0.05 per email or ZAR 0.20
per SMS) which can be avoided by choosing to receive the
notifications in the online portal.
Partners
Additional The company’s target for next year is to secure 10 percent of the
information market by the end of the year, i.e., to be processing 10 percent
of payments made to businesses in South Africa by end-2009.
Wizzit
Short description Wizzit offers a low cost, transactional bank account that uses cell
phones for making person-to-person payments, transfers and
prepaid purchases. Wizzit also offers an internet banking facility
and a credit card for purchases in the formal retail sector
Domain M-Payment
Cost for usage Wizzit does not charge a monthly administration fee as fees are
charged per transaction, a so-called pay-as-you-go model, similar
to the model employed elsewhere in the developing world.
Additional Wizzit offers a low cost transactional bank account that uses cell
183 - Mobile payment services and pilots
Short description Absa was the first South African bank to introduce Cellphone
Banking services in the year 2000.
Domain M – Payment
Cost for usage Transaction fees: ZAR 6.00 (EUR 0.55) for first ZAR 100 (EUR 8.61)
; ZAR 1.90 (EUR 0.16) for every next ZAR 100 or part thereof,
with a maximum of ZAR 35.00 (EUR 3.00)
Partners
Additional Over the last few years there has been a surge in uptake, with up
Mobile payments 2010 - 184
information to 5000 new clients registering for Cellphone Banking each day.
Absa claims to have 4 million clients on its mobile banking
service.
Saraf Mobile
Sudan
Saraf Mobile’ also creates a new authorised cash channel for both
the ‘banked and unbanked’. Individuals can go to a ‘Saraf-
Mobile’ agent to transfer money easily, securely and quickly; the
recipient is advised same-time via SMS to go to their local “Saraf-
Mobile” agent to collect the transferred cash.
Domain M – Payment
Additional The new pan-Arab service is the first phase in a planned roll-out
information which will cover 22 countries within the Middle East and North
Africa.
185 - Mobile payment services and pilots
CelPay
Domain M – Payment
Partners
Additional
information
Celpay is currently handling and processing transactions worth
K100 billion (or US$25,000,000) per month from payments made
by individuals and corporates for goods and services. Celpay is
tried and tested and US$500 million worth of transactions were
processed in the last five years. Celpay Zambia expects to reach
the US$1 billion mark by 2010.
Mukuru.com
Domain M-Delivery
Secured through Passport. If someone wants to redeem the SMS at the Point of
Sale, he or she must be identified through a passport by the
shop’s employee, before redeeming the voucher.
Cost for usage None as such, but unfavourable exchange rates with 15% margin,
about 10% higher than ‘normal’ exchange margins. So about 10%
of the transferred sum can be regarded as remittance fee.
Partners Mukuru.com
Additional The participating petrol stations vary from month to month, but
information there are always member stations within the Harare city limits.
E-Fulusi Uganda
http://www.efulusi.co.tz - 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, deposit and withdraw cash, manage a bank
account, transfer funds and also to make payments through
mobile networks, banks and mobile handsets.
Domain M – Payment
Additional Monitise has recently been awarded USD 1.5 million representing
information funding by the Africa Enterprise Challenge Fund (AECF) to deliver
its service in East Africa. Monitise East Africa will initially offer
services in Uganda with headquarters in Kampala. In due course
the service will expand into neighbouring countries, including
Burundi, Democratic Republic of Congo, Ethiopia, Kenya,
Rwanda, Tanzania and Zambia
MTN MobileMoney
The move comes after the company launched its Mobile Money
Transfer in Uganda following the completion of a 5-month trial.
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. MTN’s service MTN Mobile Money
allows MTN subscribers to send money, buy airtime and pay bills
using their mobile phones. MTN Mobile Money is available to all
MTN banked or unbanked subscribers. Besides enabling money
transfers between MTN subscribers, 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.
Domain M – Payment
Cost for usage Free during the pilot, commercial fees not yet disclosed
Additional MTN Uganda Mobile Money users are allowed to transfer amounts
information between UGX 5,000 (EUR 1.98) and UGX 1 million (EUR 398) to
another person. MTN claims to have 600 agents where users can
transfer and withdraw money.
Mobile payments 2010 - 188
Bank a billion
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.
This includes access to savings, money transfer, payments and
micro-credit.
Domain M-Banking
AMPS
Advanced Mobile Phone System (AMPS) is the analogue mobile phone system standard
developed by Bell Labs, and officially introduced in the Americas in 1983 and Australia in
1987. It was the primary analogue mobile phone system in North America (and other
locales) through the 1980s and into the 2000s. As of February 18, 2008, 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.
ANSI
The American National Standards Institute is a private non-profit organisation that oversees
the development of voluntary consensus standards for products, services, processes,
systems, and personnel in the United States. The organisation also coordinates U.S.
standards with international standards so that American products can be used worldwide.
ATM
CDMA
Code division multiple access (CDMA) is a channel access method utilized by various radio
communication technologies. It should not be confused with the mobile phone standards
called cdmaOne and CDMA2000 (which are often referred to as simply ‘CDMA’), that use
CDMA as their underlying channel access methods.
CDMA 2000
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, and constitutes the last
element in the production-consumption chain of goods and services.
191 - Annex I: Glossary
The context or transaction context is the total of situational circumstances in which each of
the three processes of the transaction – agreement, payment and delivery - take place.
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.
Ecosystem
Term derived from biology; a natural unit consisting of different elements in an area
functioning together with other factors of the environment.
EMV
EMV is a standard for interoperation of IC (or Chip) cards and IC capable point of sale
terminals and ATM’s, for authenticating credit and debit card payments. The name EMV
comes from the initial letters of Europay, MasterCard and Visa, the three companies which
originally cooperated to develop the standard. Europay International SA was absorbed into
MasterCard in 2002. JCB joined the organisation in December 2004. IC Card systems based
on EMV are being phased in across the world, under names as IC Credit and Chip and PIN.
ETSI
The European Central Bank (ECB) is the Central Bank of the Euro currency area. The central
bank is the entity responsible for the monetary policy of a country or a group of member
states. Its primary responsibility is to maintain the stability of the national currency and
money supply; 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.
The ECB was established by the EU in 1998 with its headquarters in Frankfurt, Germany.
European Commission
The European Commission – formally the Commission of the European Communities – is the
executive branch of the European Union. The body is responsible for proposing legislation,
implementing decisions, upholding Union’s treaties and the general day-to-day running of
the Union.
Mobile payments 2010 - 192
The European Payments Council (EPC) is the decision-making and coordination body of the
European banking industry in relation to payments. Its primary responsibility in recent years
has been the implementation of SEPA, the Single European Payments Area.
FI or Financial Institution
A financial institution acts as an agent that provides financial services for its clients or
members. Financial institutions generally fall under financial regulation from a government
authority. Common types of financial institutions include banks, building societies, credit
unions, stock brokerages, asset management firms, and similar businesses. Financial
institutions provide a service as intermediaries of the capital and debt markets. They are
responsible for transferring funds from investors to companies, in need of those funds. The
presence of financial institutions facilitates the flow of monies through the economy. To do
so, savings accounts are pooled to mitigate the risk brought by individual account holders
(see adverse selection) in order to provide funds for loans. Such is the primary means for
depository institutions to develop revenue. Should the yield curve become inverse, firms in
this arena will offer additional fee-generating services including securities underwriting,
and prime brokerage.
FX rate
FX rate stands for foreign exchange rate – also known as forex rate or exchange rate. It
specifies how much one currency is worth in terms of another.
Global Platform
A global platform describes some sort of hardware architecture or software framework that
allows software to run on a global scale. Typical platforms include a computer’s
architecture, operating system, programming languages and related runtime libraries or
graphical user interface.
GSMA
The GSM association (GSMA) is the global trade association representing 700 GSM mobile
phone operators. In addition, 180 manufactures and suppliers support the association’s
initiatives as key partners. The primary goals of the GSMA are to ensure mobile phones and
wireless services work globally and are easily accessible, enhancing their value to individual
customers while creating new business opportunities for operators as their suppliers.
Innovation
Long Hauls
A long haul is an innovation which differs significantly from its precursor. Also the way
consumers should use the innovation is different from the way consumers had to use its
precursor.
193 - Annex I: Glossary
Merchant
Merchants function as professionals who deal with trade, dealing in commodities that they
do not produce themselves, in order to produce profit.
MNO
Mobile Network Operator is a company that provides mobile phone service and has its own
frequency allocation of the radio spectrum, and it has the entire infrastructure required to
provide mobile telephone service.
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. The payer may or may not be ‘mobile’ or ‘on the move’.
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.
MoSign
MoSign is a project (short for Mobile Signature) initiated by Deutsche Bank, Ericsson,
Materna, Microsoft, Sema Group, Siemens and TC TrustCenter in order to demonstrate the
deployment of electronic signatures using a mobile signing device. This device was
developed by Siemens.
MVNO
A Mobile Virtual Network Operator is a company that provides mobile phone service but
does not have its own frequency allocation of the radio spectrum, nor does it have all of
the infrastructure required to provide mobile telephone service.
NFC
OTA
OTA stand for Over The Air. It refers to the transportation of messages wirelessly and
without landline.
Payment
A payment is a transfer of wealth from one party to another. A payment is usually made in
exchange for the provision of goods, services or both, or to fulfil a legal obligation.
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, but not a requirement, that a payments institution would be an
entity providing as its core business payment services, as distinct from other banking
services. However, the PSD does allow for hybrid institutions, such as telecoms providers,
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).
Perceived Risk
Perceived risk is the subjective judgment that people make about the characteristics and
severity of a risk.
POS
POS is short for Point Of Sale. It refers to a location where a transaction occurs, 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.
PSD
PSD is short for Payments Service Directive. It is a law imposed by the European Union
which intends to create equal legal conditions for payments in the EU. The consequence is
that every cross-border payment in the EU can be treated as a domestic payment.
Risk
Risk is a concept that denotes a potential negative impact to some characteristic of value
that may arise from a future event. Exposure to the consequences of uncertainty
constitutes a risk.
Secure Element
Also Security Element. Physical place used for user authentication, authorisation and stored
credentials; it houses confidential information.
195 - Annex I: Glossary
SEPA
SEPA is short for Single Euro Payments Area. This is the vision, directive and goal of the
European Commission to let consumers and businesses within the EU pay with one set of
payments instruments. This set includes bank transfers, direct debits and cards. SEPA marks
the end of international payments within the EU.
Smart Card
A smart card is defined as any pocket sized card with embedded integrated circuits which
can process information. This implies that it can receive input which is processed and
delivered as an output. There are two categories of smart cards: memory cards contain only
non-volatile memory storage components and perhaps some specific security logic.
Microprocessor cards contain volatile memory and microprocessor components.
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. 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.
Standardisation
StoLPaN
Short for ‘Store Logistics and Payment with NFC. StoLPaN is a pan-European consortium
supported by the EC’s IST program. StoLPaN examines the potential for bringing together
the new kind of local wireless interface, NFC and mobile communication.
Sure Failures
A sure failure is an innovation which is differs only slightly from its precursor, but using the
innovation requires a high degree of behavioural change.
Transaction Context
See context
Trusted third party who securely distributes and manages the service providers services to
the mobile network operator customer base
Mobile payments 2010 - 196
UICC
The Universal Integrated Circuit Card (UICC) is the chip card used in mobile terminals in
GSM and UMTS networks. The UICC ensures the integrity and security of all kinds of
personal data and it typically holds a few hundred kilobytes.
UMTS
Universal Mobile Telecommunications System (UMTS) is one of the third generation (3G) cell
phone technologies, which is also being developed into a 4G technology. Currently, the
most common form of UMTS uses CDMA as the underlying air interface. It is standardized by
the 3GPP, and is the European answer to the requirements for 3G cellular radio systems.
USSD
References
BBC (2008)
http://news.bbc.co.uk/2/hi/uk_news/1966247.stm
analysis of mobile payment security measures and different standards, Computer Fraud &
Security, Saleem Kadhiwal & Muhammad Anwar Usman Shaheed Zulfiquar, Ali Bhutto
Insitute of Science and Technology, Karachi, Pakistan – June 2007
Contactlessnews.com (2008)
http://www.contactlessnews.com/news/2008/01/11/contactless-market-continues-to-
grow-while-nfc-forecasts-revised-downward/
Eprint.iacr.org (2005)
Picking Virtual Pockets using Relay Attacks on Contactless Smartcard Systems; Ziv Kfir and
Avishai Wool, Tel Aviv University, Israel - 2005
http://eprint.iacr.org/2005/052.pdf
Europa.eu (2007)
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/52&format=HTML&ag
ed=0& language=EN&guiLanguage=en
A practical relay attack on ISO 14443 proximity cards, Gerhard Hancke, University of
Cambridge, UK - 2007
http://www.cl.cam.ac.uk/~gh275/relay.pdf
Eager Sellers and Stony Buyers, Understanding the Psychology of New Product Adoption, J.
T. Gourville. Harvard Business Review - June 2006
Understanding buyer and seller behaviour for improved payment product development, C.
Liezenberg, D. Lycklama, H. Smorenberg, Journal of Payment Strategy & Systems - April
2007
Mobile payments 2010 - 198
Mobey Forum
www.mobeyforum.org
http://www.thepaypers.com/newsletters/MobilePaymentsUpdate.aspx
Mobilegazette.com (2008)
http://www.mobilegazette.com/nokia-6212-classic-08x04x15.htm
Mobilementalism (2006)
http://mobilementalism.com/2006/02/11/samsung-and-philips-to-show-off-protoype-nfc-
phone-at-3gsm/
http://www.mobilemonday.net/news/mobile-payment-market-to-reach-eur-55-billion-in-
2006
NFC-research (2007)
http://www.nfc-research.at/index.php?id=45
http://www.paymentsnews.com/2007/04/abi_research_sc.html
http://www.technologyreview.com/Infotech/17355/page2/
ZDnetasia.com (2007)
http://www.zdnetasia.com/news/communications/0,39044192,62031790,00.htm
For news on the mobile payments industry we can recommend the following websites:
www.telecompaper.com
www.thepaypers.com
www.finextra.com
www.paymentsnews.com
www.contactlessnews.com
www.nfc-forum.org
www.nfc-research.at
Annex III: About the editors and publishers
Chiel Liezenberg
Ed Achterberg
He focuses on delivering in-depth analysis on trends across the Benelux and the Western
European industry, for both the mobile and fixed/broadband market. Prior to
Telecompaper, starting from 1995, Ed Achterberg worked as telecom consultant and
focused on telecom regulation and legislation, numbering, interconnection, and number
portability for several telecom operators, including BEN, Dutchtone, Enertel, Callmax,
BT/Telfort and others. He has a Master of Science degree from the Delft University of
Technology.
About Innopay
Innopay is an independent full service consultancy firm specialised in payments and related
transaction services.
Our key practices include online payment, e-invoicing, e-identity, mobile payment, cards
and related regulation.
Given our independent position, we work for all players in the industry. We devote research
time and investments to help peer professionals ‘structure & understand’ these topics and
actively facilitate industry knowledge transfer, which we consider crucial for the further
development of global e-business. Our leading industry reports can be downloaded for free.
With our in-depth knowledge and experience gained on both the demand side and the
supply side, we are ideally positioned to help our clients determine the direction of their
growth. This often results in new products and/or markets that we successively help to
‘develop & manage’ and bring to market in a controlled and effective way. We do this for
single clients but also for groups of clients. Consequently, 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. On the
other side, we help corporate users to ‘choose & use’ the transaction services that fit their
201 - Annex III: About the editors and publishers
specific business needs from the wide array of often industry tailored transaction services
on offer. We use a multi-disciplinary approach covering commercial, operational and
technical aspects.
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
Research: Our expert researchers are continuously monitoring the telecom industry. They
offer answers to ad-hoc questions and compile reports such as research briefs, quarterly
reports on the Dutch mobile and broadband industry, competitive updates, promotions
updates and regularly updated company profiles. Our researchers have a deep
understanding of the telecommunications markets and can help you make informed
decisions.
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items. Using our news database can make your life easier as the news is timely, focussed,
to-the-point and objective. The news items are written in English and are specifically
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Digests on various topics and regions.