mobile payment and teliasonera finland€¦ · sonera shopper trial (2001-2004) sonera shopper is a...

Mobile Payment and TeliaSoneraFinland10th November 2004 Päivi HelantoTeliaSonera Finland

10th November 20042

Agenda

• TeliaSonera & Finnish market

• Mobile payment activities

• Payment Instruments

• Learnings & Future

10th November 20043

- strong market leader

• The new company TeliaSonera started operations on 1 January 2003

• The biggest mobile phone operator in Sweden and Finland, the second biggest in Norway and the fourth biggest in Denmark.

• In Finland, TeliaSonera operates under Sonera’s name and brand.

• The company is listed in Helsinki, Stockholm and the USA

• Personnel 25,000, revenues EUR 8.9 billion in 2002 The whole service portfoliot

Selected services

Norja Finland

Latvia2)

Estonia1)

Tanska

Sweden

Lithuania

1) Minority shares in mobile phone and fixed network operators 2) Minority share in a fixed network operator

10th November 20044

Finland as m-Commerce lab

• Mobile penetration 88% - no handset subsidy

• Hardly at all “traditional” prepayment subscribers

• Premium rate services already in use from 1988, content provider processes in place

• Mobile banking already in early 90’s

• Cash is less used in the world - plastic cardsinstead (debit and credit) no checks

• Financial Institutions have already SVA-product for online micropayments

10th November 20045

Key Features of Finnish Mobile Payment Market

• History of mobile payment services is already relatively long, over 15 years.

• Finnish Banks have made a great ground job with bringing Mobile Banking services in early ’90s.

• Finns are pragmatic, which has been perfect driver for premium rate mobile utility services. (news, weathercast, drivers services, mobile tickets, mobile banking, mobile parking, positioning services)

Copyright Päivi Helanto, TeliaSonera Finland

10th November 20046

Agenda




• Learnings & future

10th November 20047

TSF Activities in Mobile Payment

1980’

1990’

2004-

2000-2004

0200-, 0600-0700-services

Premium rate SMS / WAP

3rd party payment instruments


10th November 20048

Roles of TeliaSonera Finland in mPayment

? Content Billing Service Provider

? Premium Rate Services (since 1988)

? Vending (Uphill Ltd since 2002)

? Parking (Payway Ltd since 1999)

? Technology Provider

? Mobile Pay (1999-2001)

? Application Provider

? Vending (1997-2001)

? Parking (PAYWAY Ltd)

? Mobile Payment Service Facilitator

? Sonera Shopper pilot (2001-2004)

10th November 20049

Vending 1996-

• Open for all mobile subscribers with premium rate numbers

-----------------------------------------

• The first application in 1997, now 1500 vending machines with mobile payment

• Good show case for mobile payment

• Car wash “killer application” in vending

• Video jukebox, golf ball machine, soft drink machines, photo booths…

• Uphill Ltd is a service operator

10th November 200410

Parking 1999-

• Requires registration

--------------------------------

• Pay your parking fee by mobile!

• Today billing in mobile phone bill, Sonera Shopper or credit card

• Sales for Parkit -subscribers

• From 1999 in Stockholm, 2000 in Helsinki

• Good show case for time based billing

• Payway Ltd is the service operator


Slot machine gambling –pilot , RAY

• Trial with RAY, OKO-bank, Valimo, Sonera (2001-2004)

• Payment instrument: Digiraha, Shopper

• Both payment and win payments with the same e-money (Digiraha &Shopper)


Premium rate content services since 1988• Billing in mobile phone bill.• There is a real need for optional

payment instruments like SVA or credit card.

• Killer applications from mobile payment view– Tram tickets HKL (already over

40% of all single ticket are SMS-tickets)

– In Idols song competition finals over 15% of Finns voted by telephone their idol in 2 hours.


Sonera Shopper Trial (2001-2004)

Sonera Shopper is a secure mobile payment service for end-users and merchants

Service is open for all mobile subscribers.

Sonera Shopper provides credit card (Visa / Eurocard) and shopper account (network wallet) as payment options.

Sonera Shopper is usable with any mobile handset.


Application Areas

WAP payments

WEB payments

Parking

Vending

Point-of-sales

Mobile content

Sonera Shopper Trial (2001-2004)


Shopper Environment

Financial Institutions

Consumer

Sonera

Merchants

User DBMerchant DB

Transaction DB

Shopper Account


Technical user interfaces and Authentication

Point of Sales: SMS (pin code + mobile phone number)

Parking: premium rate number + Interactive Voice Response IVR (mobile phone number)

Vending: Premium rate number + IVR (mobile phone number)

WEB: web+SMS (pin code + mobile phone-number)


Registration and service management

www.sonera.net/shopper

or SMS


Agenda






Payment Instruments in Mobile Payment

Who pays the the content – you or your employer

How strong authentication

Clearing&Settlement

Business Models


Payment Instruments in Mobile Payment

Mobile phone bill

Direct Debit (trial) /Banks

Credit Card (trial)/Luottokunta

Stored-value-account (=Mobile Cash) e.g. Digiraha, Mobiiliraha


Agenda






The Major Learnings in 15 years

• One mobile payment year is 7 normal years.

• The less registration needed for end-users the better

• Applications with real value are the best

• Easy user interface

• Mobile Operators billing system is still very efficient for micropayments



The Future

2005 2006 2007 2008 2009

3rd party content

New e/m-commerce applications

Prepaid top-up



[email protected]

mobile payment and teliasonera finland€¦ · sonera shopper trial (2001-2004) sonera shopper is a...

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