mobile payments 2010

Mobile payments 2010 Market analysis and overview

150+ mobile payment

initiatives inside

‘Mobile payments 2010’ illustrates the complexity and diversity of the mobile payments

market. In particular it highlights the different approaches between developed nations

focusing on solutions utilising existing banking infrastructures and developing nations

currently implementing more proprietary MNO driven solutions. Some of the key challenges

for market development are very well explained, the report is therefore good reading for

anyone wanting to obtain a high-level picture of the market status.

Liisa Kanniainen, Executive Director of Mobey Forum.

Mobile payments 2010 Market analysis and overview

Publisher: Innopay

Editors: Chiel Liezenberg (Innopay) and Ed Achterberg (Telecompaper)

Authors: Remco Boer, Tonnis de Boer (Innopay)

Edition

Version 1.0 1

November 2009

ISBN/EAN 978-94-90587-01-7

Copyright © Innopay BV and Telecompaper BV

All rights reserved

Preface

You are reading the report ‘Mobile payments 2010 – Market analysis and overview’. This

report is written and published by Innopay in cooperation with Telecompaper and is

endorsed by the Executive Director of Mobey Forum.

We are witnessing the second wave of interest in mobile payments. Like the first, this

second wave is characterised by the launch of a large number of pilots, utilising a variety of

channels and technologies. With high perceived demand and accessible technology for

realisation, the growth in the number of pilots around the globe is now accelerating, with a

notable increased focus on (local) money transfer and remittances.

Despite the flurry, sustainable commercial success is rarely achieved. In developed

countries with well developed and redundant transaction infrastructures the effect of

failure will be negligible. Better luck next time. But, in developing countries where

alternative transaction infrastructure is lacking, failure of mobile payment initiatives could

result in serious long term value dilution of the mobile channel. If the mobile payment

channel is tainted by lack of trust or reliability as a result of cutting corners in pilots, there

is no alternative channel for financial services delivery to fall back on, relegating these

economies back to square one. Service providers and regulators in all countries involved

should take notice of this and ensure that every measure is taken to get mobile payments –

in pilot or production- ‘first time right’.

The aim of this report is to contribute to the further understanding and structuring of

mobile payments, allowing decision-makers to better find their way in this complex matter.

It is intended for the entire mobile payments industry, including merchants, financial

institutions, mobile network operators, handset manufacturers, scheme organisations and

policy makers.

The report consists of two parts. Part 1 elaborates on the trends, developments and issues

in the field of mobile payments. Part 2 provides an overview of more than 150 mobile

payment initiatives from around the world.

All details concerning mobile payment methods and specific mobile payment products are

based on information that was publicly available when this report was written during the

summer of 2009. Although this report does not claim to provide a complete description of

the market, it is felt that it presents an overview of the main and relevant developments.

Finally, this report has been written with the utmost care. If you feel that, despite our

efforts, it contains information that is unclear, erroneous and/or missing, we appreciate it

if you could let us know. Please mail us at [email protected].

Innopay on Mobile payment

Innopay is an independent full service consultancy firm specialised in payments and related

transaction services. It is our vision that:

— Globalisation increasingly leads to a network economy.

— Electronic infrastructures enable industries to cooperate in networks, in real-time.

— Internet and mobile are developing into true transaction channels, creating new

transaction contexts.

— New contexts require new transaction services and new options emerge in existing

contexts.

— Transaction services are part of two-sided markets, with sophisticated network

effects.

— Development of successful transaction services requires thorough understanding of the

context. Development is complex and costly and asks for specialist expertise and a

specific approach.

Innopay has been active in mobile payment since 1999. Several of our senior consultants

have experienced the rise and fall of the first wave of mobile payment initiatives and the

current upcoming second wave first hand.

We have come to recognise that mobile payments are greatly dependent on the economic,

regulatory and cultural context. The European marketplace is very different from that in

developing countries. Where in the EU there is a strong focus on NFC technology and key

issues include the business case, interoperability and positioning, in developing countries

the focus is on remittance and money transfer solutions and associated regulation, funding

and risks.

Based on our experience we have created the ‘Innopay Transaction Context Model’ (parts of

which are described in chapter 3) to better understand the success factors for mobile

payment services development. Our services address three domains:

— Help you as a professional or regulator to ‘structure & understand’ the mobile payment

services industry.

— Help you as a provider to ‘develop & manage’ mobile payment business, services and

products.

— Help you as a corporation to ‘choose & use’ mobile payment solutions.

Mobile payments 2010 - 6

Some of our references cases include:

— Market analysis on introducing mobile payments in a developing nation for a leading

bank.

— Business development in using NFC stickers as contactless payment method.

— Development and piloting of a mobile micro payments solution for a large

multinational bank.

— Product development of an SMS payment solution for a large international bank.

— Product development and prototyping of a voice recognition mobile payment method

for a large international bank.

Innopay is a member of the European Payments Consulting Association (EPCA) and the

Payment Systems Market Expert Group (PSMEG) of the European Commission and an

associate member of the Euro Banking Association (EBA).

Innopay’s other key practices include: online payments, e-invoicing, e-identity, cards and

related regulation. On most of these topics we regularly publish leading industry reports

which can be downloaded for free.

For more information visit www.innopay.com or contact us directly at [email protected] or

+31 20 6580651.

Contents

Preface.......................................................................................................... 4

Innopay on Mobile payment................................................................................ 5

Management summary..................................................................................... 10

The attraction of mobile payments ...............................................................10

Towards a clearer definition of mobile payments..............................................11

In which situations would mobile payments be successful?...................................11

Recent technical developments and their implications .......................................12

Lessons, trends and issues from analysis of global initiatives ................................12

Stakeholder cooperation and standardisation...................................................13

Seizing the opportunity..............................................................................13

PART 1 MARKET ANALYSIS

1 Introduction to this report ....................................................................... 15

1.1 Increased market activity around mobile payments ...................................15

1.2 The attraction of mobile payments .......................................................16

1.3 Trends and developments for 2010........................................................17

2 Towards a clearer definition of mobile payments .......................................... 20

2.1 What exactly is a mobile payment? .......................................................20

2.2 Scoping of this report ........................................................................22

2.3 Simplifying further through classification................................................23

3 In which situations could mobile payments be successful? ............................... 24

3.1 Risk is the key driver for transactional behaviour ......................................24

3.2 Perceived risk is determined by the ‘transaction context’ ...........................25

4 Recent technical developments and implications........................................... 32

4.1 Developments in contactless technology.................................................32

4.2 NFC Security issues...........................................................................36

4.3 (Non-)availability of NFC enabled phones................................................33


4.4 Circumventing NFC-phones .................................................................34

4.5 Non-payment use of NFC ....................................................................35

4.6 SMS as a technology for mobile payments................................................41

4.7 SMS security issues ...........................................................................42

4.8 USSD as a technology for mobile payments ..............................................43

4.9 Increased broadband and the merging of channels.....................................44

4.10 Emerging ecosystem for Point of Sale NFC mobile payments.........................44

4.11 Conclusion .....................................................................................48

5 Lessons, trends and issues from analysis of global pilots and initiatives .............. 50

5.1 Mobile payments..............................................................................50

5.2 Mobile parking payments....................................................................52

5.3 Mobile ticketing for public transport or events .........................................52

5.4 Mobile POS .....................................................................................53

5.5 Mobile money transfer: remittance .......................................................55

5.6 Lessons about drivers and barriers ........................................................56

5.7 New opportunities in the Payment Services Directive (PSD)..........................60

6 Stakeholder cooperation and standardisation ............................................... 64

6.1 Why stakeholder cooperation has been hard to achieve ..............................64

6.2 Standardisation ...............................................................................66

PART 2: MARKET OVERVIEW

7 Mobile payment services and pilots ............................................................ 73

7.1 Europe ..........................................................................................76

7.2 North America............................................................................... 110

7.3 Latin America................................................................................ 131

7.4 Middle East and Asia ....................................................................... 137

7.6 Australia...................................................................................... 170

7.7 Africa ......................................................................................... 171

9 - Contents

ANNEXES

Annex I: Glossary ..........................................................................................190

Annex II: References......................................................................................197

References........................................................................................... 197

General Internet resources ....................................................................... 198

Annex III: About the editors and publishers.........................................................200

Management summary

Mobile payments are hot! Again!

There has been a lot of recent activity in the market around mobile payments with many

pilots and live applications being launched around the world. 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.

The attraction of mobile payments

The attraction of mobile payments is unquestionable. For financial institutions mobile

payments are a potential method for protecting the current account and surrounding loan

products and avoiding further disintermediation from customers. They also provide the

possibility of reducing cash and cost effectively servicing under-banked geographies.

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

Towards a clearer definition of mobile payments

In this report a proposal is made to view payments separately from other functions that can

be performed with the mobile device, 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.

In which situations would mobile payments be successful?

The key to beginning to answer this question is the realisation that a payment involves

tension between a merchant-consumer desire to minimise risk and costs and maximise

usability. 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


receiver of the innovation. The smaller the consumer’s change in behaviour needs to be,

the greater the chances of success are.

Recent technical developments and their implications

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.

Lessons, trends and issues from analysis of global initiatives

The mobile payment services offered differ per region and we have seen a strong increase

in the number of mobile remittance services across the world, especially in the USA.

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

mobile operators, financial institutions and other

participants in the ecosystem

User experience/easy to use

Complex value chain with lack of co-operation

Financial regulation

Security/risk (perception of security/risk)

Cost

Unavailability of a broad range of mobile payment

capable handset

Lack of interoperability/lack of technology standards

Stakeholder cooperation and standardisation

One of the commonly cited reasons for the relative lack of success of mobile payments so

far has been the absence of productive cooperation between key stakeholders, 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.

Seizing the opportunity

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

1.1 Increased market activity around mobile payments

There has been a lot of recent activity in the market around mobile payments with many

pilots and live applications being launched around the world.

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.

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mark

et

siz

e in

billi

on

US

D

Mobile Monday prediction Juniper prediction Juniper actuals 2003-2007

Figure 1-1: The mobile payment market proves to be quite elusive.

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


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

1.2 The attraction of mobile payments

1.2.1 For financial institutions (FIs)

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.

1.2.2 For mobile network operators (MNOs)

For mobile network operators mobile payments are an attractive proposition for achieving a

return on the investments made in infrastructure over the last two decades through

reduction of churn, 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.

1.2.3 For technology providers

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

1.2.4 For handset manufacturers

The success of the use of the mobile device for payments has the potential for resulting in

a substantial increase in both sales to new customers but also for the renewal of existing

devices in the market to ones that are payment capable.

1.2.5 For merchants

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.

1.2.6 For consumers

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?

1.3 Trends and developments for 2010

The un-debatable attraction of mobile payments for certain market parties and the

resulting market interest is causing significant investment in the creation of mobile

payment products and in the execution of pilots. The following are the key trends and

developments for 2010:

1.3.1 Towards a clearer definition of mobile payments

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


limiting cooperation, standardisation and contributing to the creation of a lot of

unnecessary noise around mobile payments. Without a clear and widely agreed definition

and taxonomy it is difficult to envisage the rapid and consistent growth of this business. In

section 2 a proposed definition and categorisation is provided that takes the best of what is

out there in the market today and provides the foundation for this report.

1.3.2 In which situations would mobile payments be successful?

Core to the analysis in this report is the study of the various contexts in which mobile

payments may be successful. 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.

Mobile payments are an innovation. Introduction of innovations into markets of embedded

incumbents requires careful consideration of the behavioural aspects of adoption of

innovations. In the latter parts of section 3 these behavioural aspects are examined and

some strategies provided for overcoming the affiliation of payments users to incumbent

payment products.

1.3.3 Recent technical developments and their implications

What have been the recent advances in contactless technology? NFC payments have

received a lot of press of late but what exactly is the status of introduction of NFC enabled

phones? What are the most popular non payment applications of NFC technology and what

are the implications for mobile payments? How does SMS technology work and what are its

advantages and disadvantages for an application such as payments? The availability of high

speed broadband on mobile devices is increasing, 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

1.3.4 Lessons, trends and issues from analysis of global initiatives

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.

1.3.5 Stakeholder cooperation and standardisation

It is generally accepted that cooperation between stakeholders (at the least financial

institutions and mobile network operators) is required to bring mobile payments to the

mass market. 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.

2.1 What exactly is a mobile payment?

One of the issues with mobile payments in the market today is the lack of a clear and

shared definition across the industry. 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

The implication of our proposed definitions is as follows:

Payments made within the confines of the bank provided mobile banking environment can

be effectively removed from the detailed discussion around mobile payments. 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.

Some examples may help to clarify these definitions further:

Example Mobile

order

Mobile

payment

Mobile

delivery

Mobile

authentication

Mobile

banking

Initiate a bill

payment via mobile

banking environment

M-Banxafe (Belgium)

No No No No Yes

Transfer funds by

submitting an

instruction to the

bank through a bank

provided mobile

banking environment

M-Banxafe (Belgium(

No No No No Yes

Payments at a

physical point of sale

Paybox (Austria)

No Yes No No No

Purchase of a mobile

ring tone

Jamster (United

Kingdom)

Yes (can be

mobile or

internet)

Yes (if deducted

from pre-paid

amount or

billed by MNO)

Yes No No

m-parking

Mobillzahlen

Handyparken

(Germany)

Yes (start and

end)

Yes (amount is

charged to the

telco bill or

deducted from

pre-paid

amount)

No No No

m-ticketing

Touch&Travel

(Germany)

Yes (can also

be via

Internet or

other means)

No (payment is

generally not by

mobile)

Yes (e.g. 2D

ticket or

reservation

code)

No No


Example Mobile

order

Mobile

payment

Mobile

delivery

Mobile

authentication

Mobile

banking

m-top up

(many mobile

operators)

Yes No, payment

takes place via

other means

(cash/card)

Yes

(notification

and balance

upgrade)

No No

Vending

Mobipay (Spain)

No Yes (initiation

and

confirmation)

No No No

Smart billboard/tags

People’s Bank

(Georgia)

Yes Yes Yes No No

P2P remittance

M-Pesa (Kenya)

Yes Yes

(confirmation)

Yes

(notification

beneficiary)

No No

Internet (or other

channel) payment

where the mobile

phone is used as part

of the

authentication

process

BankID (Norway)

No No (initiation

and

confirmation of

the payment

are still online)

No Yes No

Table 2-1: Examples of mobile payment definitions

The current overlap by the industry of such diverse functions as banking, 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.

2.2 Scoping of this report

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.

2.3 Simplifying further through classification

Given the above definition of a mobile payment there are two dimensions for further

classification, these are:

— By location, specifically remote or point of sale

— By funding method

These dimensions are defined in more detail through the diagram and accompanying

examples of applications below:

Table 2-2: Classification of mobile payment initiatives

In this section a usable definition of mobile payments has been offered and a clear

differentiation made between mobile payments and other services performed on the mobile

device. 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.

3.1 Risk is the key driver for transactional behaviour

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.

3.2 Perceived risk is determined by the ‘transaction context’

The perceived risk by sellers and buyers is strongly determined by the context of the

transaction. 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.


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.

3.2.1 The likelihood of success

For each context the table below shows the likelihood of success for mobile payment

methods.

Context Summary

Purchase of a ring

tone

Mobile payment applications that debit from a current account would be popular for this

context as long as a reputable party was perceived to be making the deductions (thereby

reducing the perceived risk from the buyer). 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

a shop

NFC based mobile payment solutions will find it a long and hard battle to break into this

market because of the attraction of existing solutions such as debit and credit cards. 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

mobile phone

Our analysis shows that direct debit from current account is the most suitable solution in

this context. The one main downside of this solution is the need to pre-register.

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


Context Summary

the payment would find success in this mature and highly profitable market.

Pizza order via

telephone

While cash is the current dominant solution in this context, an SMS based mobile solution

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.

Table 3-1: Summary of score of payments methods in different contexts

Scientific literature6 presents the premise that more often than not sellers or solution

providers are more excited and eager about their solution than the customers they target.

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


3.2.2 Why innovations fail

Why do consumers fail to use innovative products even when these products offer distinct

improvements over existing ones? Why do companies invariably have more faith in new

products than is warranted? An analysis into the behavioural aspects of innovation

introduction explains why so many products fail and outlines some actions that companies

can take to improve their chances of success.

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:

— Transaction costs, such as activation fees.

— Learning costs such as learning how to use a new payment method and

— Obsolescence costs for discarding existing methods and processes

All of these are economic switching costs that most companies usually anticipate. What

businesses don’t take into account, however, are the psychological costs associated with

behaviour change.

3.2.3 The psychological costs of changing

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.


Figure 3-2: Classification of innovations along behaviour change and product change axes.

3.2.4 Easy sells

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.

3.2.5 Smash hits

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.

3.2.6 Sure failures

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


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.

3.2.7 Long hauls

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.

3.2.8 Strategies for successful mobile payment methods

What can introducers of new mobile payment methods do to overcome these behavioural

barriers to innovation adoption and become a success?

The first and foremost action is to recognize and acknowledge that these behavioural biases

exist both in consumers and in the introducers of mobile payment methods.

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


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.

4.1 Developments in contactless technology

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.

Contactless technology can be divided into two categories:

— Vicinity, this technology offers a maximum read distance of 1 to 1.5 meters (3 to 5

feet). Examples of vicinity contactless are access control where you are not required

to take your access device out of your wallet or bag and logistics where scanning can

be done at a greater distance without the need for containers to be unpacked.

— 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 recent developments in contactless technology culminating in the registration of NFC

as an open ISO standard have been the catalyst for the recent renewed interest in NFC

based point of sale payments using a mobile device.

4.2 (Non-)availability of NFC enabled phones

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/


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.

Predicted % of phones shipped in 2011 being NFC-enabled

0

10

20

30

40

50

60

07

-20

06

10

-20

06

01

-20

07

04

-20

07

07

-20

07

10

-20

07

01

-20

08

04

-20

08

07

-20

08

10

-20

08

01

-20

09

04

-20

09

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.

4.3 Circumventing NFC-phones

While waiting for NFC handsets to become available, NFC-stickers may be a stopgap

solution.

An NFC-sticker is a sticker equipped with advanced radio frequency technology (RFID). It

transmits card information to the merchant's terminal via NFC technology. In order to pay

using these stickers, consumers need to hold their mobile device close to a reader.

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


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.

4.4 Non-payment use of NFC

While NFC technology gets a lot of press in relation to payments it can also be used in a

number on other non-payment applications. 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.

Listed below are the key non payment applications of NFC:

— 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


— 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.

4.5 NFC Security issues

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:

4.5.1 Attacking the reader

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.

4.5.2 Attacking the tag

In a landmark study of the Fraunhofer Institute SIT, Collin Mulliner13 states that the weakest

link in the chain is the passive NFC tag.

NFC communication comes in two modes:

The passive communication mode: the initiator device (in this case the tag) provides a

carrier field and the target device (in this case the phone) answers by modulating the

existing field. 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


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.

Mulliner gives some examples:

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.

Mulliner's examples of how this could be exploited included:

A tag set to send the browser on a user's handset to a particular website could be replaced

with one set to send the user to a different website.

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


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.

Figure 4-2: Schematic representation of a relay attack system

The main idea of the ghost and the leech is to create a bidirectional communication

channel between the genuine reader and the victim card. 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


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


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.

Man in the middle attack

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.

Figure 4-3: Schematic representation of a man-in-the-middle attack


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.

4.6 SMS as a technology for mobile payments

Short Message Service (SMS) is a communication protocol allowing for the interchange of

short text messages between mobile telephony devices. 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.

— Lack of encryption, SMS is sent as clear text only.

— Lack of proof of delivery, functionally, this omission can be circumnavigated; however

a proof of delivery is not part of the SMS protocol as such. It should be mentioned that

most SMS-based mobile payment methods do provide a proof of delivery, alhtough this


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.

4.7 SMS security issues

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:

— Confidentiality: The confidential information must be secured from an unauthorized

person, process or device.

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


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.

— Availability: system must be accessible for authorized users at any time.

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.

4.8 USSD as a technology for mobile payments

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#

There is no store-and-forward capability that is typical of ‘normal’ short messages.

Response times for interactive USSD based services are generally quicker than those used

for SMS. Also, the sender of a message can be absolutely sure that they are talking to their

own operator. As a consequence, communication via USSD is in sessions instead of in

discrete intervals.

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).


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.

4.9 Increased broadband and the merging of channels

High speed broadband internet is increasingly available on mobile devices. In parallel,

mobile devices are becoming increasingly like laptop computers in terms of the

functionality they offer. The continuation of these two trends implies that in the near

future, at least in terms of functionality, there will be little difference between our mobile

devices and our laptop computers. The only yet critically important differences will

continue to be the size of input (by definition small for a mobile device) and the size of the

display (again smaller for a mobile device).

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 Emerging ecosystem for Point of Sale NFC mobile 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.

— Mobile Network Operators: provides the infrastructure for communication in remote

applications.


— 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.

— Collaborative model: financial institution and mobile network operator collaborate to

fulfil the role of the Trusted Services Manager.

— Independent entity model: An independent third party fulfils the role of the Trusted

Services Manager.


Figure 4-4: The four roles for the Trusted Services Manager (TMS)

4.10.3 Proposed ecosystem from the GSMA

The main components of the GSMA proposed ecosystem are:

— Secure Element located on the UICC

— Mobile network operators will use and supply the UICC, banks will pay the mobile

network operator for access

— Banks and retailers will control the applications resident on the UICC and the financial

data pertaining to each specific customer through the Trusted Services Manager

The diagram below provides an overview of the ecosystem proposed by the GSMA.


Figure 4-5: Overview of the ecosystem proposed by the GSMA

The advantages for use of the UICC to locate the Secure Element in the GSMA model are:

— Portable and transferable across devices and networks. Customers can easily transfer

their applications and rights from one NFC enabled mobile device to another.

— Global penetration - The UICC has wide scale global deployment potential – hence it is

cost effective to use the UICC as a location for the Secure Element rather than to

develop, implement and deploy a new alternative.

— Dynamic remote over the air management. Mobile network operators already operate

secure remote UICC management systems and processes (Over the Air). These can

easily be leveraged to manage the whole life cycle of mobile NFC services.

Furthermore, services loaded onto the UICC can be immediately blocked, activated or

suspended.

— Longer life cycle typically then devices. The UICC has a longer lifecycle than a mobile

device - hence it is more suitable to house the NFC applications on it rather than on

the mobile device. This permits the customer to easily transfer and use their mobile

NFC services over time.

— Standardised: UICC Security is based on global, well-established standards (such as

ETSI-SCP, 3GPP, Global Platform) covering application storage, OTA communication,

privacy and the entire life cycle management.

— Consistent approach, by deploying mobile NFC applications in the UICC, the mobile

network operator can leverage existing capabilities to provide OTA management and

single point of contact device management services to customers.

— Battery independent: The UICC mobile solution also allows NFC services to work even

when the battery is off.


Key to the GSMA model is also the role of the Trusted Services Manager. The Trusted

Services Manager manages the download and life cycle management of the mobile NFC

application on behalf of the financial institutions and provides the single point of contact

for the financial institutions to access their customer base through the mobile network

operators.

The key risks of the GSMA proposed ecosystem are:

— Non wide scale acceptance by the financial institutions because of disintermediation

from the consumer as depicted in the diagram provided by the GSMA below:

Figure 4-6: Schematic representation of des-intermediation between issuing bank and consumers

— It is a closed model restricted to the reach of the mobile network operator and the

agreements signed by financial institutions with a specific mobile network operator.

— It does not provide a widely accepted or easy to use solution for the update of the

Secure Element on the UICC. Currently the update of an application on the Secure

Element requires a complete over-write of all existing data on the Secure Element. As

a comparison for Personal Computers this is equivalent to having to perform a BIOS

format and re-write when wanting to upgrade a single application.

Strategies to overcome these limitations will be discussed in future versions of this report.

4.11 Conclusion

The advantages and disadvantages as well as contexts of the four technologies are

summarized in the table below.

Technology Advantage Disadvantage Use Examples

NFC Quick and easy

Lack of availability

of NFC enabled

phones

POS only Osaifu Keitai

(Japan), Visa

PayWave

(Guatemala)


Technology Advantage Disadvantage Use Examples

SMS Available and

understandable to

every cell phone

user

Expensive, recipient

not always available

Banking, Remittance Rabo SMS betalen

(Netherlands),

USSD Available to every

cell phone user

Not user friendly

interface

POS, Banking mPay (Poland),

MobiPay (Spain)

Internet Connects to user

experience,

Most phone users

worldwide are not

able to use it

Banking, POS (if real

time), Remittance

Table 4-1: Mobile technology advantages and disadvantages

5 Lessons, trends and issues from analysis of global pilots and initiatives

5.1 Mobile payments

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.

Figure 5-1: Geographical dispersion of mobile payment initiatives

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.

Figure 5-2: Geographical dispersion of techniques used

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.

Region Service Technology Pilot or

commercially

available

Examples

Europe Mobile parking

Mobile ticketing

NFC

SMS

NFC

SMS

Pilot

Available

Pilot

Available

Payter (Netherlands)

Paybox (Austria)

Mobile ticketing London

Underground (UK),


Region Service Technology Pilot or

commercially

available

Examples

Mobile POS

Mobile remittance

Mobile remittance

NFC

SMS

SMS

SMS

Pilot

Available

Available

Available

Touch&Travel (Germany),

Beep (Netherlands), Paybox

(Austria)

Rabo Mobiel (Netherlands),

Paybox (Austria)

Luup (Gemany, Norway)

Mobipay (Spain)

North

America

Mobile remittance SMS &

Web browser

Available Obopay (US)

Asia Mobile POS

Mobile ticketing

Mobile remittance

NFC

NFC

SMS

Available

Available

Available

NTT Docomo’s Osaifu-Keitai

(Japan)

G-Cash (Philippines)

Africa Mobile remittance SMS Available Wizzit (South Africa), M-Pesa

(Kenya)

Table 5-1: Geographical dispersion of mobile payment services, technologies with examples

5.2 Mobile parking payments

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.

5.3 Mobile ticketing for public transport or events

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.


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.

5.4 Mobile POS

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


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:

— Edy: Edy is a pre-paid electronic money scheme launched in October 2001 by

Bitwallet, a joint venture between NTT DoCoMo, Sony Corporation, Sony Finance

International, The Japan Research Institute, Toyota Motor Corporation, Denso

Corporation, DDI Corporation, Sanwa Bank, and the Bank of Tokyo-Mitsubishi. At the

end of March 2005, Bitwallet reported that it had issued 9.2 million cards in total, 5

percent of which were enabled for mobile purchases. It also stated that the Edy card

was usable in 20,000 member shops and generates 7.1 million transactions per month.

— 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.


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.

5.5 Mobile money transfer: remittance

Around the globe there are numerous initiatives that enable individuals to transfer money

to each other via their mobile phones. 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.


Transferring money to M-PESA customers as well as non-M-PESA persons by means of an SMS

is the centrepiece of the system. Only Safaricom subscribers can send M-PESA payments,

but the recipient need not be a subscriber or even a bank account holder. A user can have

up to KES 50,000 in their M-PESA account, with no minimum balance, and charges are levied

on a pay-as-you-go basis. There is no credit facility per se available on M-PESA. The

relatively low maximum balance is presumably an attempt at limiting the opportunity for

money laundering.

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.

5.6 Lessons about drivers and barriers

5.6.1 Business models

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


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

Mobilkom Austria adopted a mobile-operator centric model which is rather successful in

terms of uptake and usage of mobile payment services. The mobile operators control the

mobile service value chain and the payment value chain. The Austrian operator has put a

lot of money and resources into the mobile payments strategy, including the acquisition of

Paybox and the establishment of a bank subsidiary. The initial mobile payment technology

of Paybox is based on SMS. SMS is a widely available and well-known mobile service.

Recently Mobilkom also introduced Near Field Communication (NFC) as a payment solution

for mobile ticketing for public transport.

NTT DoCoMo also has an operator centric approach towards mobile banking. 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.

Independent service provider centric

Obopay is a peer-to-peer mobile payment company enabling mobile phone users to send

and receive money through their phones via a mobile web browser or SMS. 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. 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

The uptake of international remittance services tends to be driven by growth in the

immigrant population worldwide as well as the overall health of the global economy. The

United Nations cited that the number of immigrants worldwide is roughly 200 million, or

approximately 3 percent of the world’s population and this amount is forecast to reach

more than 280 million by 2050. In 2007, the top three inflow remittance countries were

India, China and Mexico, which were estimated to have received USD 27 billion, USD 25

billion and USD 17 billion in remittances, respectively. The United States dominates in

outflow remittances, sending out USD 42 billion in 2006. This is followed by Saudi Arabia

and Switzerland, with outflow remittances of USD 16 billion and USD 14 billion,

respectively. Offering mobile remittance services has some potential for countries with

immigrants that originate from under-banked countries.

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


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

Near Field Communication (NFC) is the technology of choice to develop proximity

transactions between mobile phones and contactless readers. NFC enables multiple

contactless applications on mobile phones, and is not restricted to payment or transport.

Other NFC based services include mobile ticketing, loyalty and access control services. The

NFC business case will be a challenging one for mobile operators. Short-term benefits, in

particular from transport and payment applications, may be limited because these

transactions don't need mobile networks. However mobile operators have to provide the

NFC enabled mobile phones. In order to monetise this enabler role, mobile operators should

find ways to generate revenues from application owners, like banks and transport

companies. Orange France sees a business case taking shape in the form of fees it could

charge banks, transit operators, retailers and other service providers for downloads of the

applications to the SIM and renting space on the card. Orange also could earn significant

revenue from additional data traffic, such as from monthly downloads of transit passes to

the phones. This would however not be attractive to MNOs that charge flat rates for data

services.

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-


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.

5.7 New opportunities in the Payment Services Directive (PSD)

The Directive on Payment Services (PSD) provides the legal foundation for the creation of

an EU-wide single market for payments. 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.


The PSD is a European level regulatory framework, interpretation of this framework,

creation of actual legislation, implementation and governance are the responsibilities of

individual Member States.

The intentions of the PSD can be summarised as follows:

— Allow non-banks to offer payment services thereby opening the market up for

competition

— Making market entry for payment institutions subject to license requirements

— Provide an adequate regulatory framework in which these non banks would operate

— Currently any payments institution that works at a European scale now needs a

regulatory license for every single country. 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.

5.7.1 For whom is PSD important?

The PSD is important for two groups:

— those who are currently perform activities that require a license under the PSD

legislation from 1 November 2009 onwards.

— 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.

5.7.2 Who has to adhere to PSD regulations?

The exact definition of a payments institution is important for mobile payment initiatives

and mobile network operators, since important groups are excluded from the scope PSD.

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


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.

Technical providers to payment institutions such as providers of processing, data storage,

data, authentication and IT communication providers are not classified as payment

institutions and therefore do not need to comply with the PSD.

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).

5.7.3 To what should these parties adhere?

Entities without a banking license currently providing payment services that do fall under

the category mentioned above will need to comply with the PSD regulations which can be

categorised at a high level into the following:

Regulations to obtain a license to operate as a ‘payment institution’. These include proving

the existence of sound administrative, risk management and accounting procedures, proper

internal control mechanisms, directors and managers that are of good repute. This license

to operate as a ‘payment institution’ is issued by the national banks of Member States.

According to the Dutch Central Bank (DNB), the expected costs for a license are EUR 3,100

in fees and approximately 40 man hours for gathering the necessary information. Fulfilling

the ongoing information duty to the central bank will cost approximately 10 hours per year,

according to DNB.

Capital requirements, payment institutions will be required to maintain a certain minimum

level of capital. For mobile payments this will be an initial amount of €50,000.

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 information and protection, these include regulations aimed at achieving

consistency around terms and conditions, display of foreign exchange rates before point of

acceptance and documented customer receipts and acknowledgements. However there will

be an exemption to these requirements for small value payments where individual payment

transactions must not exceed €30 or there must be a spending limit of €150 or the

maximum amount of funds stored on the instrument must not exceed €150 at any time.

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


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.

5.7.4 The opportunity for the new Payments Institutions

Where payment services are provided via a – in general – 4 party scheme then these

schemes should be open to any party complying with the PSD and scheme’s rules subject to

adequate risk controls to ensure appropriate requirements in order to ensure integrity and

stability of those systems.

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.

Also the importance of standardisation in the mobile payment industry to ensure

interoperability and rapid growth is discussed and some of the key standardisation

initiatives in the market today are described.

6.1 Why stakeholder cooperation has been hard to achieve

One of the commonly cited reasons for the relative lack of success of mobile payments so

far has been the absence of productive cooperation between key stakeholders, 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:

6.1.1 Desire to diversify from core businesses

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.

6.1.2 Debate over who ‘owns’ the customer

One of the still unresolved issues around the cooperation between mobile payment

stakeholders is the key question of customer interaction and ownership. Financial

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.

6.1.3 Difficulties around branding in cooperative models

Cooperation is slowed and made difficult when each stakeholder is keen to associate and

imprint their own brand on the new payment system. 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.

6.1.4 Debate over the location of the secure element

The preferred location of the mobile payment application for the mobile network operator

is the UICC or SIM. 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.

6.1.5 Inability to arrive at a workable revenue sharing model

The players of the value chain must agree on basic revenue sharing principles between

industries, 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.

It is critical to mention in closing the positive activities in motion around cooperation

between key European regulatory bodies such as the European Payments Council (EPC) and

the GSMA. At the time of writing these two bodies were sharing thoughts on cooperation


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

6.2.1 Importance of developing mobile payment standards

Without the creation and usage of standards for mobile payments the industry risks the

development of non-interoperable islands of pilots and solutions. 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


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.

6.2.2 Standardisation initiatives

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.

Open Mobile Alliance (OMA)

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


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.

European Telecommunication Standard Institute (ETSI)

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:

— Service provisioning by banks, operators and terminal manufacturers have to be

independent from each other.

— Banks manage the authentication in their banking and payment services.

— Open and non-proprietary standards are to be supported.

— 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.


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.

The goals of NFC forum are to:

— Develop standards-based Near Field Communication specifications that define a

modular architecture and interoperability parameters for NFC devices and protocols.

— Encourage the development of products using NFC Forum specifications.

— Work to ensure that products claiming NFC capabilities comply with NFC Forum

specifications.

— Educate consumers and enterprises about NFC.

To meet these goals, the NFC Forum:

— Develops standards-based specifications that define NFC device architecture and

protocols for interoperability.

— Encourages the use of NFC Forum specifications.

— Works to ensure that products claiming NFC capabilities comply with NFC Forum

specifications.

— Educates consumers and enterprises globally about NFC.


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.

StoLPaN calls itself the NFC mobile services standards consortium.

EMVCo

EMVCo LLC, was formed in February 1999 by Europay International, MasterCard

International and Visa International to manage, maintain and enhance the EMV Integrated

Circuit Card Specifications for Payment Systems.

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

The Paypers www.thepaypers.com

The Paypers is the leading independent

source of news and analysis for

professionals in the global payment

community. Their products are created by

payment professionals and cover all

significant developments in cards and

payments, with a special focus on the

online payment, online banking, mobile

payments and e-invoicing industry, globally.

Mobile Payments Update

The Mobile Payments Update is created

jointly by The Paypers and Telecompaper –

their counterpart for the telecom industry.

The newsletter covers all the developments

in the global market for mobile payments,

m-commerce, mobile ticketing, and mobile

banking services. The Mobile Payments

Update comprises several feature articles

as well as short items with news from the

previous fortnight.

The Paypers on your iPhone!

The Paypers is proud to offer our global

readers the possibility to read the latest

mobile payments news on the iPhone™

The Paypers iPhone™ application allows you

to enjoy The Paypers on your iPhone™,

wherever you are. Specifically designed to

utilize the features and navigation of the

iPhone™, this application syncs and

downloads the latest global payments’ news

directly to the device.

Part 2 Market overview

7 Mobile payment services and pilots

We have identified and listed more than 150 initiatives and pilots worldwide and are most

likely not complete as new initiatives and pilots are announced almost on weekly basis21.

There clearly is an accelaration in growth of the number of pilot and initiatives worldwide.

0

20

40

60

80

100

120

140

160

180

03

-20

08

04

-20

08

05

-20

08

06

-20

08

07

-20

08

08

-20

08

09

-20

08

10

-20

08

11

-20

08

12

-20

08

01

-20

09

02

-20

09

Nu

mb

er

of

mo

bile

in

itia

tiv

es

Europe North America

Latin America Asia

Australia Af rica

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.

Type of service Type of technology Type of domain

Mobile ticketing

Mobile parking

Mobile remittance

Mobile POS

SMS

WAP/Internet

NFC

USSD

Voice

M-Payment

M-Order

M-Banking

M-Delivery

M-Contract

Table 0-1: Classification table of initiatives

21 Please contact us if your initiative is not (or erroneously) listed and provide us with the (correct) data as included

in our listing to be included in a next edition.


The following initiatives are listed:

Europe

Austria – Paybox

Belgium – M-Banxafe

Belgium – Proximus M-Pay

Belgium – Proximus SMS

Belgium - Ping.Ping

Czech Republic - Czech Telefonica O2

Estonia – Cinemon Cinemas Ticketing

France - Disneyland Paris NRC trial

France – Payez Mobile

France – TreiZen

France - Tag Pay

Germany – MobilZahlen

Germany – NetBank

Germany – RMV mobile ticketing

Germany – StarMoney Handy

Germany - T-Mobile Streetgiggs

Germany – Touch&Travel

Germany - 12Pay

Hungary – MobilFizetés

Italy – PosteMobile

Netherlands – Beep! Mobile Tickets

Netherlands - Rabo Mobiel: mobile banking & NFC

Netherlands - Rabo SMS betalen

Norway – Telenor

Norway - Mobile Axept

Poland - MPay Wallet

Portugal - MB Phone

Romania – ING – MasterCard trial

Romania - Good.bee

Spain – Mobipay

Spain - Banamex SMS Banking

Spain - NFC Telefónica

Spain - Presto Park&Go

Spain - Banco Popular Español

Swizerland - PostFinance SMS Banking

Swizerland - Epay24

UK – AvantixMetro

UK – Mobile theatre ticketing service

UK – Monilink

UK – Payforit

UK – RingGo Mobile

UK – Trinity Mobile

UK - MoBank

Europe – Atlas Interactive SMS billing

North America

Canada – Everyman Cinema Club Mobile Ticketing

Canada – RBC Mobex

Canada – Zoompass

US – America First Credit Union

US – Arvest Mobile Banking

US – BankCorp South, FirstBank, Region’s Finance,

SunTrust Bank

US – Bank of America Bank the way you live

US – Mobiqa Venue Ticketing US – Mocapay

US – Obopay

US – Payment BuyVoice

US – PayPal Mobile

US – P2P Cash

US – Synovus

US – Wachovia Mobile

US – Fargo Mobile

75 - Mobile payment services and pilots

US – Bank of Stockton

US – Boku

US – Citibank Mobile Banking

US – Eficash

US – FirstBank’s Mobile Banking Service

US – Huntington Mobile Banking Service

US – IBC Bank

US – m-Via US

US – Commerce Bank mobile banking

US – SizzleMoney

US – Zong

US – Eagle Eye Vouchering

US – Chase Mobile

US –Zala

Latin America

Argentina – Atlas Interactive Mobile Billing

Argentina – Banco Francès Mobile Banking

Argentina – Banco Galicia Mobile Banking

Argentina – Banco Río

Brazil – M-Cash

Brazil – Oi Pago

Brazil - Samba 38

Guatemala – Visa Pay Wave

Peru - Pago Movil

Venezuela - Diemo

Middle East and Asia

Afghanistan – M-Paisa

Bahrain – Smart MTC

Bangladesh – SSL Wireless

Cambodia – Wing Money

China – EasiRemit

China – UMPay

China – Ali M-Pay

India – mChek

India – Obopay India

India – Oxicash SmsPay

India – State Bank of India Mobile Banking

India – Pay Anyone

India – Citi NFC trial Bangalore

India – Citibank M-Banking India

India – PayMate India

Japan – FeliCa Mobile

Japan – KDDI au’s Osaifu Keitai

Japan – Shinginko

Mongolia – XacBank Mobile Banking

Pakistan – Mobilink Genie

Philippines – G-Cash

Philippines – Smart Money

Saudi Arabia – Smart Bank Service

Singapore – EZ-link

Singapore – SingTel

Singapore – M1 Mobile Payments

South Korea – BankOn

South Korea – K-Merce

South Korea – Moneta

South Korea – Tesco Visa Wave

South Korea – KTF Ubitouch Mobile Banking

Taiwan – M-Ticketing Kaohsiung

Thailand – Advanced Mpay

Thailand – TMB Mobile Banking

Thailand – Kasikornbank Visa trial

Turkey – Bankararasi Kart Merkezi


Japan – S!Felica

Kuwait – Viva M-Pay

Malaysia – DiGi Remit

Malaysia – Mobile Visa Wave Payment

Malaysia – One Smart PayPass

Malaysia – Maxis FastTap

Turkey – Turkcell

UAE – Dubai Bank Mobile Banking

UAE – Du and Dubai First NFC trial

UAE – Standard Chartered Mobile Banking

UAE – Mashreq Paymate Banking

Australia

Australia – Mobile Queensland Australia – Telstra, NAB, Visa

Africa

Cameroon Mobile Money

Ghana - txtNpay

Ivory Coast - Orange Money

Kenya – Eazy 24.7

Kenya - Cooperative Bank of Kenya mobile banking

Kenya – M-PESA

Kenya - Standard Chartered M-Banking

Kenya - Zain M-Wallet

Sierra Leone - Mi-Pay Sierra Leone

South Africa – Cell Pay Point

South Africa – MTN Banking

South Africa – POCit

South Africa – SWAP Mobile

South Africa – Wizzit

South Africa - Cellphone Banking Absa

Sudan Saraf Mobile

Zambia - CelPay

Zimbabwe – Mukuru.com

Uganda - E-Fulusi Uganda

Uganda - MTN MobileMoney

Worldwide – Bank-a-billion

Table 7-2: Listed mobile payment initiatives per geographical region

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


Type of technology SMS, NFC

Domain Mobile payment, Mobile order

Secured through Paybox PIN per SMS; SMS confirmation; combination of voice call

and Paybox PIN

Cost for usage EUR 19 subscription fee per year

Partners MNO: ONE and Mobilkom ; Merchants: lottery, casinos, online

shops, retail shops, cigarette vending machines, ÖBB Railways,

Wiener Linien; Technology: NXP Semiconductors, Nokia

Additional

information

Austrian mobile operators Mobilkom Austria and One are the

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.

Type of service Mobile Banking

Type of technology SMS

Domain Mobile payment

Secured through SIM

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.


Partners MNO: BASE, Mobistar and Proximus; Financial institution: Banksys;

Technology: Gemalto; Merchants: (online) merchants that join

Pay2me

Additional

information

This service is accessible to anyone having a Bancontact/Mister

Cash bank card and a GSM operating on one of the three Belgian

mobile telephone networks. M-banxafe therefore works for debit,

credit or top-up transactions.

Potential The service is quite expensive and uses a two-sided billing

system: fees are levied to both payer and payee, whereas other

payment methods are offered at no charge to the payer.

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.

Type of service Mobile POS

Type of technology WAP

Domain M – Ordering

Secured through A secured page on the website

Cost for usage Free of charge

Partners Mobiel Operator: Proximus / Bango, supports the M-Pay system

Additional

information

Customers who want to buy a ringtone, music, videos or digital

content from the Vodafone live! portal, can now do so by using

the Proximus M-Pay payment system. Customers can make

purchases of up to EUR 10. The purchases via one-click payment

will be stated in the monthly bill of the Proximus subscribers. The

purchases by prepaid customers will be deducted from their

calling credit.

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.


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 service Mobile ticketing

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.

Domain M-Ordering, M-Delivery, M-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

information

For SMS ticketing with the mobile phone, Proximus M-Pay needs

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


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.


Type of technology NFC

Domain M – Payment

Secured through PIN

Cost for usage None

Partners MNO: Belgacom; Retailers: Delahize, Coca-Cola; Technology:

Accor Services

Additional

information

Czech Telefonica O2

www.cz.o2.com/osobni/en/home/index.html - Czech Republic

Short description Czech operator Telefonica O2 and the transport service provider

from the Czech city Pilsen participate in an NFC mobile payments

trial, running from March – December 2009.

On top of being able to pay for transport rides, trial participants

in Pilsen will use their NFC phones to purchase goods at

participating retail shops as well as buy tickets for entertainment

areas.

The NFC transit application will be available for download

through the Telefonica O2 network. Users will be able to top up

their e-purse and transit application as well as buy new bus

tickets directly from their NFC phone, on top of using the city

website.

Type of service Mobile ticketing, Mobile POS


Domain M – Payment, M – Delivery

Secured through PIN


Cost for usage Free during pilot

Partners MNO: Telefonica O2; Technology: NXP (MiFare)

Additional

information

The mobile wallet displays the available bus tickets, the travel

history, the balance of the transit e-purse and the last 4

transactions.

Cinamon Cinemas Ticketing

www.cinamon.ee - Estonia, Latvia, Lithuania

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.

The actual purchase is made online, delivery is via SMS.



Domain M-Delivery

Secured through None

Cost for usage No charge to the consumer

Partners Cinamon Cinemas, Mobiqa, Vista Entertainment Solution

Additional

information

Customers can go straight to the usher point in the cinema,

streamlining entry.

Since the method is based on SMS, the SMS containing the 2D

barcode can easily be forwarded, which might cause problems for

the cinema owner, when two people end up having the same

barcode for the same cinema seat.

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.


Disneyland Paris NFC trial

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.



Domain Mobile Payments

Secured through

Cost for usage

Partners Disneyland Paris, Credit Mutuel, CIC, NRJ Mobile

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

Secured through SIM

Cost for usage Free during trial

Partners Banks: BNP Paribas, CIC, Crédit Mutuel, Groupe Caisse d’Epargne,


La Banque Postale, Société Générale, LCC.

MNOs: Bouygues, Orange, NJR Mobile and SFR.

Cards: MasterCard WorldWide, Visa Europe

Technology: Gemalto, Ingenico, Inside Contactless, Oberthur,

Pole-Tes and Sagem Monetel.

Additional

information

The Payez mobile service is started November 2007 and it

includes 1,000 customers and 200 sales outlets located in the

cities of Caen and Strasbourg. The service also intends to check

for interoperability. Payez Mobile was previously known as

Pegasus.

Potential A project that manages to align a whole plethora of banks and

MNOs must have potential. For a pilot however, this is easier than

for a full-scale commercial roll out. Also, the business case for

NFC-based POS payments is far from positive, and the parties

involved have not managed to solve that issue. It is however the

first pilot to achieve interoperability between different MNOs and

banks.

Tag Pay

www.tagnpay.com – France, Africa, India

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.

The payment procedure works as follows: the merchant enters

the amount due on a special Tag Pay terminal. The consumer

(payer) enters his mobile phone number and secret PIN. In a few

seconds, the clients’ phone rings. The client ‘signs’ the

transaction with his mobile phone by placing the phone in the

terminal. If the transaction is approved, a message appears on

the terminal and on them mobile phone. The amount is credited

from the consumers’ pre-paid account. The technology used for

authorisation is dubbed NSDT.


Type of technology WAP/Internet



Secured through 4 – digit PIN and one-time password (OTP)

Cost for usage Free of charge during pilot stage – fees will be brought in place in

case of roll out.

Partners Tagittude

Additional

information

Each time the consumer makes a transaction, encrypted

information is embedded in an audio one-time password (OTP)

that is sent to the payment server through your phone’s audio

channel. OTPs are only valid for 1 transaction and have a very

short life span, making them useless if intercepted and replayed.

All transactions are confirmed by text message. Clients can

require a pin code for all payments for additional protection.

The service is already being piloted in Kenya, Zambia, India,

South Africa, Congo, and the Democratic Republic of Congo.

Tagattitude teamed up with Telemedia Group and LAM to offer

TagPay in Mali. Through TagPay, Malians in France can pre-pay

purchases at specified stores in Mali, which are retrieved and

paid for using the mobile phone of the intended recipient.

MobilZahlen

www.mobilzahlen.de – Germany

Short description Mobilzahlen Handyparken is a German service, which aims at

people seeking more convenience in purchasing their parking

ticket. Drivers can use their mobile phones to pay for their

parking tickets in the German cities of Cologne, Augsburg,

Hamburg, Neustadt, Lübeck, Celle and Friedberg. Users can

subscribe to the service by registering their mobile phone number

and the license plate(s) of their car(s) and postal address with

Mobilzahlen. Mobilzahlen then sends a letter to the address

asking for the bank account number and a signature to authorise

Mobilzahlen to set up direct debit. Users can purchase parking

tickets by calling a toll-free number. The user pays per minute.

Type of service Mobile parking

Type of technology IVR

Domain M-Payment, M-Order

Secured through None, username/password to change details online

Cost for usage EUR 0.11 – EUR 0.19 per transaction


Partners Community parkings in participating cities

Additional

information

Potential The service fulfills a need of the parking consumer. The

subscription procedure however is quite complicated, as the

MobilZahlen account is connected to a bank account. This method

saves the consumer the trouble of funding a new wallet, but

confronts him with the necessary red tape. A similar service is

the UK fails to take off, but with large German cities making the

service available, MobilZahlen is a cheap, convenient service with

a lot of potential. Mobilzahlen allows users to pay the parking fee

per minute. Instead of the user having to predict the amount of

time he wants to park beforehand, he can start his parking ticket

the moment he parks and stop it the moment he takes off again.

MPay

Germany

Short description Mobile payment service for online purchases as an alternative to

online payment services like PayPal or Firstgate's Click&Buy.

Type of service Mobile remittance


Domain M-Payment

Secured through Mobile number plus PIN.

Cost for usage Not disclosed yet

Partners MNO: Vodafone, O2

Technology: Paybox

Additional

information

The service is based on automatic withdrawals from bank

accounts and SMS payments. The customer buys something online

or via a mobile portal, enters her/his phone number, receives an

SMS to approve the order and the money is automatically

transferred from their account to the account of the seller.


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.

At mobil.netbank.de, users can view their account turnover,

transfer money, set up standing orders and much more. Each

transaction requires a transaction authentication number (TAN)

for authentication and an additional safety code is required on

login in order to protect the account against fraud. Other

European banks are currently using the platform for their mobile

banking portal.

Type of service Mobile banking

Type of technology SMS and WAP/Internet

Domain M-Payment

Secured through Password and TAN codes


Partners Sevenal, Netbank

Additional

information

The service was launched in October 2008

RMV mobile ticketing trial

Germany

Short description NFC field trial for mobile ticketing for public transport in the

region of Frankfurt am Main. RMV introduced its mobile ticketing

scheme in 2006 and is one of the pioneers in this area.

The main target of this enhanced ticketing solution is to enable

customers to purchase mobile tickets even more spontaneously

and easily. The ticket will now be stored in the embedded secure

element of the NFC- enabled mobile phone, and can be inspected

just by holding the device close to the inspector’s reading device,

which checks the validity of the ticket.




Domain M-Order, M-Delivery, M-Payment

Secured through Embedded


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.

Additional

information

The scheme was one of the first to introduce NFC-enabled

services. In June 2008, the service announced to expand the

geographical reach of the pilot to all eleven cities served by the

RMV.

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

Short description StarMoney Handy allows financial organisations to provide their

own mobile service and free mobile banking access to all online

accounts, even accounts with different organisations.


Type of technology WAP

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.

Partners

Initially, the service is available through Star Finanz and

Kreissparkasse Düsseldorf building society. After a four months


pilot, StarMoney Handy is commercially launched by five German

Sparkasse banks, one Volksbank and Deutsche Sparkassenverlag.

Additional

information

Once they have signed a contract, customers get the StarMoney

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

Short description German mobile applications developer Mindmatics has developed

the mobile ticketing service for the T-Mobile Street Gigs, a series

of pop concerts at unusual locations in Germany. Mindmatics has

provided T-Mobile with an online-based registration for free SMS

tickets for the concert, which can be scanned at the concert's

location using barcode scanners



Domain M-Delivery

Secured through None, since content is free

Cost for usage Free

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

Short description Railway operator Deutsche Bahn and Vodafone Germany

cooperate for a mobile ticketing trial that started on 29 February

2008. The trial is executed by 200 persons, who regularly travel

on the ICE route Berlin-Hanover. The pilot will also run in a part


of Berlin's S-Bahn and in Potsdam's public transport routes.



Domain M-Order and M-Delivery

Secured through SIM

Cost for usage Free of charge during trial

Partners Partners for the project are public transport providers

Verkehrsbetrieb Potsdam, Berliner Verkehrsbetriebe, as well as

technology partners Atron electronic, smart card developer

Giesecke&Devrient, Motorola and semiconductor manufacturer

NXP.

Additional

information

In July 2007, Vodafone Germany selected Paybox as the processor

to launch a national mobile payment system in Germany. With

the paybox Mobiliser Products (Money Mobiliser, TopUp Mobiliser,

Mobile Wizard), Vodafone Germany enables their customer to

exploit the whole potential of m-commerce for secure payments

in the Internet, m-commerce, content and NFC payments.

According to the planning, travelers all over Germany can enjoy

make use of the service in 2010.

Potential The initiative has assumed that NFC-phones would become widely

available in 2010. This is not the case. A technology push

product.

12Pay

www.dimoco.at/en – Austria, Germany

Short description Austrian mobile payment services provider Dimoco has launched a

new m-payment service called 12Pay, which is aimed at business

customers.

Using 12Pay, businesses can enable clients to pay for products

and services via their mobile phone bills. Consumers can confirm

the payment process via SMS or web. Initially, the service is only

available in Austria and Germany but Dimoco plans to roll it out

in other countries.





Secured through PIN

Cost for usage None for end user

Partners Technology: Denarii Payments

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.

The amounts of low value purchases accumulate until it reaches

HUF 500 (EUR 1.90), then the amount will be debited to the bank

account at the end of the month. The user can fund the wallet

using credit card, postal checques, wireless transfer or cash

deposit at one of EME’s outlets.

In March 2009, the service was extended enabling participants to

pay for utility bills using the service.

Type of service Mobile Parking, Mobile Banking


Domain M-Payment, M-Order, M-Delivery

Secured through PIN

Cost for usage From HUF 15 (EUR 0.06) per transaction

Partners MNO: Pannon, T-Mobile; Bank : FHB and MPP; Technology: Enigma

Additional

information

In September 2008, 30.000 clients were able to pay the parking

fee with the help of their mobile phones in 16 towns all over the

country and in all the districts of Budapest.


Potential With most parking spaces in Hungary connected to the system, it

is quite easy and handy. The service fulfills a need to pay parking

space per minute and reduces the hassle of having the right

change. Hungary however is still a cash-based society. The

purchase of other goods and paying for utility bills do not really

fulfill a need.

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.

Type of service Mobile remittance, Mobile banking


Domain M-Banking, M-Payment

Secured through SIM, username/password

Cost for usage MVNO rates apply

Partners MVNO: PosteMobile ; Bank : BancoPosta ; Technology: Gemalto

Additional

information

PosteMobile was launched in November 2007 and immediately

started to deploy mobile-banking services to their customers. The

project has proven quite successful with over 200,000 BancoPosta

customers using these services in just six months, among the over

250,000 PosteMobile customers. PosteMobile announced in June

2008 that it would pursue its innovation strategy by rolling out m-

payment and m-commerce services. Their goal is to turn the

mobile phone into a real e-wallet.

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


companies, this success is unlikely to be repeated.

Beep! Mobile Tickets

www.beep.nl – The Netherlands

Short description Beep! allows customers to pay for tickets over the internet and

then receive the ticket over SMS.

Type of service Mobile ticketing for events

Type of technology SMS sending a barcode

Domain

M-delivery. Ordering a ticket is done by the internet, the delivery

takes place on the mobile phone (barcode).

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

Partners Beep! Mobile Tickets is a joint venture of KPN and Imtech.

Additional

information

Beep! works together with organizations such as The

Entertainment Group, a producer and organiser of concerts and

festivals in the Netherlands.

Rabobank NFC trial

The Netherlands

Short description Rabobank has become the first bank in Europe to introduce

mobile banking and a mobile service in one with Rabo Mobiel.

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.

Type of service Mobile ticketing, mobile POS


Type of technology NFC and SMS

Domain M-Payment

Secured through PIN

Cost for usage

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

information

In the roadmap it is the banks vision also to use mobile phones for

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.

Rabo SMS Betalen

www.rabomobiel.nl - The Netherlands

Short description Rabo SMS betalen is a wallet and subscription based mobile

payment method.

For using Rabo SMS betalen (SMS payment), a customer sends an

SMS to a short code to the mobile phone number of the intended

recipient of the money and the amount. After that a confirmation

will be sent to both sender and recipient.

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


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.

Of course the sender is charged for the SMS by the MNO.

Partners Rabobank

Additional

information

The system is based on MiniTix, a system initially launched for

micropayments online.

Rabo SMS betalen can be used by anyone with a Dutch bank

account (not necessarily Rabobank’s) and a Dutch mobile phone

number.

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

Secured through SIM

Cost for usage Not disclosed

Partners Bank: DnB Nor

MNO: TeleNor

Additional

information

Still in pilot stages, DnB Nor and TeleNor both launch a separate

pilot in Oslo, Norway


Mobile Axept

http://www.mobileaxept.com/eng – Norway

Short description mobileAxept is a technological platform that allows user to pay

with their credit cards using your mobile phone.

Users can register their credit card (number, expiry date and

CVC2 security code) and connect it to their MobileAxept account.

Currently users can only pay by MobileAxept in some taxis

participating in a trial.




Secured through 4 digit PIN

Cost for usage Depends on operator

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.

In a separate move, Polish bank Citi Handlowy, mobile operator

Polkomtel (Plus) have teamed with mobile payments company

mPay to launch a mobile payment service which allows users to


pay for Warsaw transport authority (ZTM) tickets.

Dubbed 'Pay With Your Mobile’, the service enables Plus

customers to make mobile payments for ZTM time-limited tickets

directly from their Citi Handlowy bank account. Initially, the

service is available to passengers of the public municipal

transport in Warsaw. In order to buy a ticket, subscribers dial

‘145’, enter a code specific to the ticket type and then press #.

Users can purchase 20-minute, 40-minute, 60-minute or 90-

minute time-limited tickets. Users do not need to

install applications and the service works with all mobile phone

models.

Type of service Mobile POS, Mobile ticketing

Type of technology USSD



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

Partners MNO: Polkomtel (Plus)

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.

In order to use the service, customers need to register for the

TeleMultibanco service, which is already used at ATMs for certain

mobile transactions. Also required are phones that support WAP,


as well as adequate pricing plans.




Secured through 4 – digit PIN

Cost for usage Free during trial period (until 30 June 2009)

Partners MNO: Vodafone, Optimus, TMN, processor: SIBS

Additional

information

ING, Mastercard trial

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.

Trial participants are to be able to pay for low value purchases of

up to RON 80 (EUR 20.66) by tapping their phones against

contactless terminals installed in 30 to 40 locations. On top of the

mobile payments service, participants as well as merchants will

have access to marketing services provided through smart posters

that rely on NFC.



Domain M-Payment



Partners Financial: ING, MasterCard; Technical: Collis (Netherlands),

LogicaCMG (Netherlands), Venyon (Finland) and Toro (Taiwan).

Additional

information

The program will focus on consumer and merchant experience

and will include a maximum of 500 consumers equipped with

Nokia 6212 NFC-enabled handsets embedded with Maestro

PayPass technology.


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.

In order to use the service, customers have to call a Good.Bee

access number. Customers can view information about their BCR

accounts, top up their or other persons’ mobile phone prepaid

accounts, transfer money to another good.bee client’s BCR

account using a mobile phone number, transfer money to any

bank account in Romania as well manage their bank accounts

(change PIN or block card).

In order to use these services, the subscribers must have an

account at BCR. Good.bee Mobile Transactions can be used from

any type of mobile phone, without the need for any application

or internet access.




Secured through PIN

Cost for usage Starter kit: RON 26 (EUR 6), money transfer: EUR 0.35 – 0.56,

balance check: EUR 0.14 – EUR 0.21

Partners Financial: BCR and Visa; Technology: Good.bee

Additional

information

The company expects some 1.3 million banking transactions in

2009 and targets 100,000 customers in 2009, according to the

managing director of good.bee Romania Sorin Bulai. The initial


investment made by Good.bee reached over EUR 1.5 million.

Mobipay

www.mobipay.com – Spain

Short description Mobipay is a system that activates existing payment means

(normal or virtual credit, debit or pre-paid cards) and that allows

to carry out a variety of transactions transforming the mobile

phone. Mobipay can e.g. be used for purchases on the internet,

pay for a taxi, top up a prepaid card, public transport ticketing,

authorizing payments (pay an invoice) and send money to another

person.

Users can choose to link their Visa or MasterCard debit or credit

card to their Mobipay account and pay from their debit/credit

card, or – for smaller purchases (< EUR 6) – can choose to have

the amount deducted from their airtime credit or charged to

their phone bill. P2P payments are not yet possible.

Type of service Mobile ticketing, Mobile parking, Mobile remittance, Mobile POS

Type of technology SMS, USSD

Domain M- Payment, M-Order, M-Delivery

Secured through A personal Mobipay number, the telephone number associated to

Mobipay, a PIN number of the telephone associated to Mobipay.

Cost for usage 8 cents per transaction

Partners MNO: Orange, Telefonica, Vodafone; Banks: 9 Spanish financial

institutions; Technology: Oberthur

Additional

information

Mobipay is a model open to all mobile telephone operators and

financial or non-financial card issuing entities who wish to offer

mobile payment services to clients.

Potential Mobipay is perhaps Europe’s most promising mobile payment

method, because of the plethora of options it offers consumers

and the sheer number of MNOs and financial institutions

cooperating. Mobipay’s offering is very complete includes

services in payment contexts where it really fulfills a need.


Banamex SMS Banking

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).




Secured through PIN and secured SIM


Partners MNO: TelCel, Bank: Banamex

Additional

information

At present, Banamex has 12 million customers in Mexico, while

Telcel’s subscriber base exceeds 56 million. According to Telcel’s

director of value added services Marcos Quatorze, Telcel’s parent

company America Movil forecasts that almost 2.9 percent of its

overall mobile user base in Latin America will use mobile banking

services by 2010, a figure expected to increase to 9 percent by

2012.

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.

Using the Virtual Mobile Wallet application which is stored on the

mobile phone’s SIM, users are able to select the bank card they

wish to use to make payments. Upon choosing a card, users need

to wave their NFC-based handsets over NFC terminals to

complete a payment process.

Through applications build in the SIM trial participants are able to


manage the life cycle of various financial cards, such as emission,

activation, use as well as cancelation, over-the-air.




Secured through PIN


Partners MNO: Telefónica; Technology: Sermepa

Additional

information

Presto Park&Go

www.prestoparking.com – Spain

Short description Prestoparking offers users of parking meters in the Spanish

municipality of Caldes d’Estrac (near Barcelona) the possibility to

pay their parking ticket by mobile phone. Without pre-

registration, users can send an SMS with the time until which they

want to park their car and the license plate number of the car to

a short code. The amount due is then either deducted from the

pre-paid credit or added up to the monthly phone bill. The

service as such is free of charge.

The service is available for users of the Orange, Vodafone and

Telefónica networks.

Type of service Mobile parking


Domain M – Order, M – Payment

Secured through PIN

Cost for usage Non

Partners MNO: Telefónica, Orange, Vodafone; Technology: PrestoParking

Additional

information


Banco Popular Español

www.telefonica.com/home_eng.shtml - Spain

Short description Spanish bank Banco Popular Espanol and Telefonica launched a

web-enabled mobile banking service for 3G iPhone and iPod

Touch users.

The service enables Telefonica subscribers to check their Banco

Popular Espanol bank accounts, send money, make purchases and

block or activate cards via the internet. Telefonica designed a

software application to adapt Banco Popular’s access systems,

information and operations to the iPhone technology.






Partners Telefonica, Banco Popular Español

Additional

information

In 2009, Banco Popular Espanol had more than 80,000 mobile

banking customers and manages around 500,000 mobile

transactions per month.

PostFinance SMS Banking

www.postfinance.ch – Switzerland

Short description Swiss bank PostFinance offers a free SMS transfer service to its

Postkonto customers.

After registering, customers can use the service to transfer up to

CHF 100 (approximately EUR 66) per day between Postkonto

account holders. Besides remittances, customers can use the

service to check their account balances and their latest

transaction on their accounts. Before approving transactions,

PostFinance will check each transaction for the correct mobile

phone number as well as the personal limit of the user.

Registered recipients will receive an SMS after each money

transfer is approved by the bank.






Cost for usage None

Partners Financial: PostFinance

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.

With Epay24, merchants can accept payments made via the

service PostFinance’s m-payments service ‘Handyzahlung

Postfinance’. To offer the service, merchants need a valid bank

account and an ePay 'residence' number, to which ePay links the

payments from their customers.

The service was launched in 2008 in Horgen at Zurichsee and has

been extended to almost 100 locations across Switzerland.

Epay24's mobile payment service focuses on unmanned points of

sale for florists and growers of fruit and vegetables. To make a

payment, customers call a free number, enter the location

number and follow the spoken instructions.


Type of technology Voice



Cost for usage None

Partners Financial: PostFinance; Technology: Epay24

Additional

information


AvantixMetro

www.atosorigin.com/en-us/Newsroom/en-us/Press_Releases/2008/2008_07_10_01.htm -

United Kingdom

Short description IT services company Atos Origin has rolled out a mobile ticketing

service for the Heathrow Express train network, between London

Heathrow’s airport terminals and Paddington Station in Central

London. Passengers on the Heathrow Express can now receive

their tickets directly to a mobile phone or PDA.

This is the first implementation of AvantixMetro, Atos Origin’s

mobile and e-ticketing service. Individual and corporate

customers can now book tickets online, via the Heathrow Express

website, and choose to receive either a bar-coded e-ticket that is

stored on their mobile phones, or a self-print version of the

ticket. These tickets are then scanned and validated on-board

the Heathrow Express train, via a Casio IT-3000 terminal.



Domain M-Delivery

Secured through Lies outside the mobile phone

Cost for usage Free

Partners Atos Origin, AVANTIXMetro, Heathrow Express

Additional

information

Launched July 2008

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.

Mobile theatre ticketing service

United Kingdom

Short description Commercial mobile theatre ticket service. To access the mobile

box office, O2 customers simply text LOTR to 2020 on their

mobiles. The new service is delivered by Trinity Mobile on behalf

of O2.




Domain M-Order

Secured through Using a secure credit or debit card transaction over Trinity's Easy

Ticket site within O2's Active Portal

Cost for usage Free

Partners Mobile Operator: O2 UK

Additional

information

Monilink

www.monilink.co.uk/mobile-banking - United Kingdom

Short description Ulster Bank has formed a joint venture with the UK ATM network

operator Vocalink and mobile banking services provider Monitise

to offer a mobile banking service. The customers of the Northern

Ireland-based bank are enabled to access their account balance

and view mini-statements on their mobile phone after a sign-up.

In future, more services are to be added to this service.


Type of technology WAP / Internet

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.

Partners Monilink is a joint venture between Monitise Plc, a UK technology

service company, and VocaLink who run the UK's ATM/Self-

Service network. Monilink is supported by 7 mobile operators in

the UK ( T-Mobile, Orange, Vodafone, O2, 3, Tesco Mobile and


Virgin Mobile)

Additional

information

Monilink is UK's mobile banking network, providing banking

customers with access to their financial information directly from

their mobile handsets. With Monilink, customers can see their

account balance in real time, view a mini statement detailing the

last six transactions and add credit to up to five pay as you go

mobile phones.

Payforit

www.payforituk.com – United Kingdom

Short description Orange, Vodafone, T-Mobile, 3 and O2 launched a payment

system that allows subscribers to use the mobile phones to pay

for low value purchases. Any purchases made will be charged

directly to the monthly phone bill, or deducted from the prepaid

credit.



Domain M-Order, M- Delivery , M-Payment


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.

Partners Mobile operators: Orange, Vodafone, T-Mobile, 3 and O2.

Additional

information

First announced in March 2006, the Payforit scheme has been

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.


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

www.ringgo.co.uk – United Kingdom

Short description Business process services provider Cobalt introduces RingGo, a

system that enables drivers to pay for their parking and top up

their parking time by using their debit or credit card over the

phone. The system also notifies users when the parking time is

due to expire, by means of a text message.


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.

Partners VISA, Mastercard, Switch, Delta and Maestro

Technology: Cobalt Telephone Technology

Additional

information

In April 2009, RingGo registered 7,000 transactions in Oxford

alone. The service is offered in 20+ localities, of which Oxford is

the most important. A year ago, RingGo registered 1,500

transactions/month in Oxford.

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.


Trinity Mobile

www.trinitymobile.co.uk/template2.asp?page=easyticket – United Kingdom

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


Cost for usage Free

Partners

Additional

information

Trinity provides Mobile Ticketing services to other parties, like

for Arriva and YourRail

MoBank

www.mobank.co.uk/mobank/ - United Kingdom

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.

The user needs to install a free application on the mobile phone

in order to be able to use MoBank

The service is currently only available on the i-Phone and works

for only a couple of banks.

Type of service Mobile POS, Mobile ticketing, Mobile banking




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.


Partners

Additional

information

Chance of success: only one phone, a few (big) banks, with

Barclays you still have to type in your Barclays PIN next to your

MoBank PIN – seems SO complicated – Many steps required to have

a payment succeed. 0 chance

Atlas Interactive SMS Billing

www.atlastelecommobile.com/ - Europe, Latin America

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.

Partners Atlas Interactive

Additional

information

MO-Billing (MO = mobile originated) defines a billing process in

which the end- user types a SMS in his mobile phone and sends it

to a certain short code. He will then be billed by the end of the

month on his mobile operator's invoice for every SMS sent to the

shortcode.

MT-Billing (MT = mobile terminated) defines the reverse process

of billing the end- user. In this message flow the end- user will be

billed for every SMS he receives on his mobile after initiating the

billing process with a free SMS MO. The amount billed is invoiced

by the mobile network operator by the end of the month.

In October 2008, Atlas Interactive launched its service in

Argentina, Peru, Columbia, Venezuela, Mexico and Ecuador.

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.


7.2 North America

Everyman Cinema Club mobile ticketing

www.everymancinema.com – Canada

Short description Everyman customers can buy mobi-tickets online at

everymancinemaclub.com. Mobi-tickets are SMS text messages

that contain a unique barcode and information about the film

time, screen and seating. Customers have to present their mobi-

tickets at the cinema where it is scanned by staff to allow entry

to the film. Mobi-tickets can also double as vouchers or coupons

that enable customers to purchase for food and drinks.



Domain M-Delivery


Cost for usage None

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.

The service is specifically aimed at P2P payments. Users can send

everyone (also non-subscribers) money via SMS, as long as the

sender and recipient have a Canadian mobile phone number.



Domain M-Payment

Secured through PIN


Cost for usage For the time of the pilot, no fees are incurred to the consumers.

Partners Paybox

Additional

information

Service highly similar to Rabo SMS betalen. Money can be sent to

all Canadian mobile phones. In order to retrieve money, the

recipient has to subscribe to the service.

Users can keep track of their spendings online.

Potential Transferring money electronically P2P costs money in Canada in

contrast to some European countries. The costs of this service

will therefore probably not be so much of an obstacle. The

service is convenient, but requires a separate wallet to be set up,

which could discourage consumers.

Zoompass

Canada

Short description Zoompass is a Canadian mobile P2P remittance service.

Consumers open a Zoompass account and link it to their credit

card or bank account. They have to download a Java-based

application to their cell phone in order to transfer money.



Domain Mobile Payments

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.

Partners EnStream, which is a joint venture between MNOs Telus, Bell

Mobility and Rogers Communications

Additional

information

America First Credit Union

United States

Short description After downloading the mobile banking 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 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.

Logging into mobile banking requires a six-digit PIN.

Activation of the service can only be initiated in the secure mobile banking environment.



Domain M-Banking and M-Payment

Secured through Six digit PIN on downloadable application

Application downloadable via online banking account – after login

Cost for usage Wireless provider fee – no fee for service as such

Partners Firethorn

Additional

information

America First Credit Union has 432,000 members.

The service was announced in October 2007 and has been

operational since March 2008.

AFCU mobile banking is only available for carriers Alltel, AT&T

and Verizon Wireless.

Arvest Mobile Banking

United States

Short description After downloading the mobile banking 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 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.

Logging into mobile banking requires a six-digit PIN.

Activation of the service can only be initiated in the secure

mobile banking environment.






Application downloadable via online banking account – after log-

in


Partners Firethorn and CheckFree

Additional

information

Logging in requires a six-digit PIN.

Only available for carriers alltel, at&t and Verizon wireless



The service was announced in October 2007 and has been

operational since April 2008.

BankCorp South, First Bank, Region’s Finance, SunTrust Banks,

www.bancorpsouthonline.com/home/personal.checking.Mobile_Banking - United States

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.






in


Partners Firethorn

Additional

information

Logging in requires a six-digit PIN.




The service is only available for carriers Alltel, AT&T, Cellular

South and Verizon Wireless.

Bank of America 'Bank the Way you Live'

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.


Type of technology WAP/internet

Domain M-Banking

Secured through Personal information is protected by advanced encryption

technology to prevent unauthorized access.

Cost for usage Mobile Banking service is free. Customers will be charged mobile

access rates.

Partners

Additional

information

With Mobile Banking from Bank of America, customers can use a

mobile phone or smart phone to access balance information, pay

bills, transfer funds and find nearby ATMs or banking centres.

Bank of Stockton

www.bankofstockton.com/Main.aspx?TabID=14&PageID=106 – United States

Short description Bank of Stockton provides its online banking customers with an

additional channel to do their banking business: the mobile

phone. 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.

Customers have to enrol to this service via their mobile banking

account. Without such an account, enrolment is not possible.





Secured through PIN number that has to be sent along with every command.


in


Partners ClairMail

Additional

information

Available on the major US mobile network operators: Alltel,

AT&T, Boost, Cellular One, Nextel, Sprint, T-Mobile, US Cellular,

Verizon and Virgin Mobile. The service is said to work regardless

of carrier, manufacturer, operating system or wireless

transmission standard.

Boku

www.boku.com - United States

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

Type of technology SMS, internet

Domain 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


Potential Boku seems susceptible to fraud. A fraudster could enter a mobile

phone number and then using a free online SMS spoofing service,

spoof the confirmation SMS to Boku. Boku would not know the

difference, and the real owner of that phone number would only

detect the fraud at the end of the month when the bill comes in.

Due to Boku’s global reach, this could be a global fraud scheme

and seriously harm the service.

Citibank mobile banking

www.citibank.com/citimobile/ - United States

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

Secured through PIN

Cost for usage The service is for free although customers have to pay data

download charges from the mobile operators.

Partners Mobile operators: At7T, Cinhular Wireless, Sprint and Verizon

The service is developed in conjunction with mFoundry, a

aompany that specializes in mobile application development

Additional

information

Citi Mobile service requires a registration of a specific phone and

selection of a six-digit access code.

FirstBank's Mobile Banking

www.efirstbank.com/internetbanking/mobile.html - United States

Short description FirstBank's Mobile Banking service: view account balances and

transfer funds.


Type of technology WAP/internet

Domain M-Banking


Secured through

The mobile banking application is protected with two-factor

authentication and encryption of offline storage. Mobile banking

requires a 6-digit PIN to access the application. All data placed

into local storage on the mobile phone is encrypted. This ensures

that if the mobile phone is lost or stolen, the data stored locally

for the mobile banking application is unreadable. For security

purposes, mobile banking enrolment takes place within internet

banking.

Cost for usage FirstBank does not charge any fees for mobile banking.

Connectivity and usage rates may apply.

Partners

US-based mobile operator: Verizon Wireless

Firethorn offers the a m-banking service

Additional

information

The service is based on a Firethorn application that utilises both

PIN and device lock-out capabilities. Customers will need to

register with their financial institution's online banking service in

order to use this mobile banking service. The Firethorn app is

available on several phones from Verizon Wireless, including the

Chocolate and enV by LG, LG VX8700, LG VX8600, LGVX9400 and

the Samsung SCH-a950. Firethorn also offers the m-banking

service to customers of Wachovia, SunTrust and BancorpSouth.

Huntington Bank mobile Banking

https://mobile.huntington.com - United States

Short description Huntington Mobile Banking offers three functionalities on the

mobile phone: check balance, transfer money between own

accounts, pay bills to existing payees and an ATM locator




Secured through Username – password


Partners

Additional

information

Huntington Bank has hit its annual mobile banking target in two

months. Following its launch of mobile banking service in 30

June, Huntington hit eight times its monthly usage goal in July


and is about to exceed that by 40 percent in August.

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

www.ibc.com/Personal-AccountFeatures.aspx?sSection=mobilebanking – United States

Short description US-based IBC Bank has activated a new mobile banking service

called IBC Mobile which enables customers to conduct their

business on their phones in either English or Spanish. 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.

Payment of bills is possible to existing payees. New bill payees

must be set up in the online banking environment.






in


Partners mFoundry

Additional

information

The service was activated in July 2008.



The service is only available for carriers AT&T and Sprint.


Mobiqa Venue Ticketing

http://epnn.com/content/view/18559/489/ - US, Canada

Short description UK mobile technology company Mobiqa offers mobile ticketing in

cooperation with US online tickets provider Tickets.com. Mobile

ticketing will become available for events taking place at three

venues in US and Canada: Times Union Center in Albany (US), K-

Rock Centre in Kingston (Canada) and BOK Center in Tulsa (US).

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



Partners Mobiqa, Tickets.com, K-Rock Center, BOK Center, Times Union

Center

Additional

information


Mocapay

www.mocapay.com – United states

Short description Mocapay is an integrated mobile payment and marketing platform

allowing: “any consumer to link, any payment account to any

mobile handset to transact at any point of sale system.”

Any American consumer, that is. Mocapay users have to subscribe

to Mocapay prior to being able to use the service. Mocapay is a

wallet-based method.

On POS, the user selects an account and receives a targeted


promotional message. The customer sends the secure pin and

gets a Mocapay code, with an additional targeted promotional

message. The customer gets a code back, and gives it to the

cashier. After the transaction is completed, the customer gets a

mobile receipt, and the money is deducted from his account.

With that, he gets an additional targeted promotional message.



Domain M-Payment

Secured through PIN


Partners

Additional

information

The service was launched in late 2006

Potential

It seems the consumer is overwhelmed with marketing messages

from the service, but that could keep costs low. Putting gift and

loyalty cards in a mobile wallet is a good idea from a consumer

perspective. The phone is a ‘can’t leave home without’, whereas

gift cards are easily forgotten. The redemption process is a bit

complicated though.

Obopay

www.obopay.com – United States

Short description Obopay is a peer-to-peer mobile payment company enabling cell

phone users to send and receive money through their phones via

a mobile web browser or SMS. Verizon Wireless is one of the

mobile operators that have launched the Obopay Service. Money

can be transferred to anyone with a mobile phone in the US


Type of technology SMS, WAP/Internet, IVR


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


linking to a bank account is free of charge.

Partners

Most significantly, 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.

Additional

information

Obopay is a service that lets consumers and businesses purchase,

pay, and transfer money through any mobile phone using

Obopay's mobile application, text message, mobile Web, widget,

or Obopay.com. Obopay works on any mobile phone and any

mobile operators.

Potential

Payment BuyVoice

www.planetpayment.com/MobileCommerce/paymentbuyvoice.aspx - United States

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.

Registered merchants dial a BuyVoice toll-free number, inputting

their identification number and unique pin number, provide

customer zip code and sale amount and provide customer's credit

card information.

The natural speech application recites the payment authorisation

code. The merchant also receives it via email or text message

(SMS). The payments platform sends payments directly to the

merchants bank account.


Type of technology SMS / Voice

Domain M-Payment



Partners Planet Payment

Additional

information

The mobile phone is used as a payment terminal. After a test

period, the method has been commercially available since June


2008.

Potential The service seems quite far-fetched. Payment procedure is

complicated and far away from any existing payment experience.

Also the delivery method of the confirmation code to the

merchant does not create an optimal user experience from the

merchant side of the equation.

PayPal Mobile

www.paypalmobile.com - United States, Worldwide

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.


Type of technology SMS, Automatic Voice Response, downloadable application

Domain M-Payment, M-Order

Secured through PIN code

Cost for usage Private: none

Business: 1.4% - 3.4% plus GBP 0.20, for receiving payments

Partners PayPal, Sprint Nextel

Additional

information

PayPal Mobile is available for person to person payments as well

as POS-payments.

Ordering is also possible: when a consumer sees an advertisement

with a PayPal Mobile logo, he can send a text message to a

number provided in the advertorial. After confirmation via PIN,

the item is automatically sent to his address.

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.


P2P Cash

www.p2pcash.com – United States

Short description P2P Cash guarantees transfer of cash to any cellphone worldwide

using a Secure Open Standard (SOS). The P2P Cash Secure Open

Standard guarantees the transfer of cash between any two

cellphones worldwide regardless of the carrier or communication

network.

STEP 1: Purchase a prepaid Debit card and load cash at

convenience store in U.S., register cell phone and PIN # with

P2PCash

STEP 2: SEND Tel # of Recipient, Dollar amount ($100.00) and PIN

and RECEIVE Confirmation number for Cash

STEP 3: Present confirmation number at convenience store and

receive cash in local currency



Domain M-Payment

Secured through PIN

Cost for usage not disclosed

Partners none

Additional

information

The service is only available for pre-paid mobile phones.

Synovus

www.synovus.com/index.cfm?catid=1&subject=22 – United States

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.







in


Partners Firethorn

Additional

information

The service was announced as early as November 2006.



The service is only available for carriers AT&T and Verizon.

Wachovia Mobile

www.wachovia.com/personal/page/0,,10_476_12583,00.html#application – United States

Short description Wachovia Mobile provides a safe and secure way for Online

Banking customers to access eligible Wachovia accounts for free.

Wachovia offers two ways to access your accounts from your

mobile device: through a mobile application or through an

Internet enabled browser.


Type of technology WAP/ Internet

Domain M-Banking

Secured through Username/password

Cost for usage None

Partners None

Additional

information

The mobile banking application offers: viewing account balances

and transactions; make one-time transfers between eligible

accounts; make one-time bill payments; viewing eBills.

Wells Fargo Mobile

www.wellsfargo.com/mobile/ - United States

Short description The Wells Fargo Mobile service enables you to connect to your

eligible Wells Fargo accounts via the mobile web or text


messaging (SMS) from your mobile phone or other handheld

device. You can check account balances and review your recent

account activity using the mobile browser or text messaging

functions. You can also transfer funds using the browser function

— all from your mobile phone or device.

The Wells Fargo Mobile service provides access to any of your

eligible Wells Fargo personal or small business deposit or credit

accounts. You select which of your accounts you’d like to access

from your mobile phone.




Secured through Username password, as with online banking


Partners None

Additional

information

Testing the service started in April 2007.



The remittance service is only available using the web browser.

The text message service is only used for alerts and balance and

history enquiries.

Wells Fargo was the first bank to offer online banking accounts in

1995.

m-Via

www.m-via.com/files/english/main.html – United States

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.





Secured through Identification at cashing point


Partners Not disclosed yet

Additional

information

Commerce Bank mobile banking

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.




Secured through Username and password

Cost for usage Free

Partners Bank: Commerce Bank

Additional

information

The service is only available for customer who also participate in

Commerce Bank online banking

SizzleMoney

http://www.sizzlemoney.com – United States

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


product package includes a pin-based debit card for use at ATM’s

and at retail establishments.

SizzleMoney provides you with full mobile access to money and

payment services, including:

— Person to Person Payments

— Person to Merchant Payments

— Money Sharing (Domestic & Foreign)

— SizzleMoney Card-based transactions (retail purchases using

pre-paid/re-loadable card & ATM transactions)

Type of service Mobile POS, Mobile Remittance, Mobile Banking



Secured through PIN

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

For a complete list: http://sizzlemoney.com/termscond/fees.pdf

Partners Technology: Denarii Payments

Additional

information

Zong

http://www.zong.com/zong – United States

Short description Zong is a mobile payment method especially designed to pay

online. The phone is used as the authorization method, and the

amount spent is charged to the phone bill. Through merchants

using Zong, consumers can pay with their mobiles for items such as

games, avatars, virtual world goods, and applications for social

networks or mobile devices. To make a purchase from an online

merchant, users click on the logo and enter their phone number.

Users then receive an SMS which contains a 4-digit one-time-

password (OTP). The user enters the OTP on the website and

confirms the transaction. All purchases are added to the user’s

mobile phone bill or deducted from the pre-paid credit.



Type of

technology

SMS



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

information

Zong claims the high fee (30 – 55% of transaction value) is justified

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.

Eagle Eye Vouchering

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.

US NFC m-payments services provider ViVOtech and provider of

mobile vouchers platforms Eagle Eye Solutions integrated their

services in order to provide a mobile vouchering service for

retailers.



Domain M – Delivery


Cost for usage None for consumers, for retailers not dislosed


Partners ViVOtech and Eagle Eye Solutions

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.




Secured through PIN

Cost for usage None

Partners

Additional information The service is only available for Internet-enabled mobile

phones.

Zala

www.azuremedia.com – United States and Europe

Short description Zala is a dual consumer-to-consumer and business-to-consumer

application which leverages the BlackBerry Enterprise server

(BES) and the BlackBerry Mobile Data System (BMDS). Zala is an

application that uses the large Blackberry display and trackball

navigation, enabling person-to-person transactions on a unified

communication platform. Zala is designed to help corporate

finance administrators to adjust ‘the controls’ on a Zala account

including spending limits, restrictions, replenishment amounts

and reimbursements.

Type of service

Mobile remittance (P2P)

Mobile banking



Domain M-Payment

Secured through

Cost for usage

Partners Technology: mFoundry

Additional

information

Zala positions itself as a turn-key modular, mobile financial

services platform. It is a secure international, mobile money

transfer service that can be used on a mobile phone and on the

web.

Zala is a virtual bank account that comes with a personalised Visa

or Mastercard debit card that can be used for purchases or to

access cash from thousands of ATM’s worldwide.

Eficash

www.efici.net – United States, Latin America

Short description Eficash is a mobile based e-wallet service for banks and mobile

operators in the US and Latin America.

Eficash is a mobile application based on a pre-paid model that

allows consumers to make and receive payments as well as

manage bank accounts by linking their debit, credit card and

bank accounts to their phone number. Users have to top up their

Eficash accounts before making transactions and have access to

their funds through the web or mobile phone. During

transactions, the authentication of the user takes place via

mobile phone number or user name and password. Users are also

sent a confirmation message after each transaction via email or

SMS based on user preferences. Clients can also use Eficash with

phones with integrated cameras to interpret 2D codes and

expedite payments.

Type of service Mobile POS, Mobile Banking, Mobile Remittance

Type of technology SMS, 2D

Domain M – Payment, M-Delivery

Secured through PIN

Cost for usage Depends on operator

Partners Technology: Efici

Additional


information

7.3 Latin America

Banco Francès Mobile Banking

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.

Customers have to enrol to this service via their mobile banking

account. Without such an account, enrolment is not possible.




Secured through PIN

Cost for usage Receiving alerts: ARS: 0.14 (EUR 0.03), for making transfers ARS

0.30 (EUR 0.07), both excluding taxes.

Partners Banco Francès, Movistar Argentina

Additional

information

The service was launched in February 2007

Banco Galicia Mobile Banking

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,


along with an 8-digit password. After downloading the link,

customers can access mobile banking via an 8 digit password on

their mobile phone application.


Type of technology Internet


Secured through Username/password (8 digits)

Cost for usage None, extra service to online banking customers

Partners Banca Galicia, America Movil

Additional

information

The service was launched in 2006

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.




Secured through Username/password (8 digits)

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).

Partners Banca Galicia, Movistar, Personal

Additional

information

The service was launched in 2006


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

Secured through Unknown

Cost for usage Unknown

Partners

The initiative has been launched in partnership with the company

M-Cash and Albatroz Participações (a private equity firm).

Additional

information

In November 2006, HSBC bank launched in Brazil a service called

M-Cash. The technology offers automatic debit from the client's

current account, with no additional cost and is compatible with a

wide range of standards including GSM, CDMA and TDMA for

mobile telecommunications and SMS, WAP, USSD and IP/XML for

data applications. Currently, approximately 10,000 HSBC account

holders use the service but M-Cash management expects it to

account for 3% of all electronic transactions by 2009.

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.

Type of service Mobile remittance, Mobile POS


Domain M-Payment

Secured through A personal password is used to authorise the transaction.

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.

Partners Mobile operator Oi, processor; BrasPag


Paggo, the company that operates the payment system

Additional

information

Oi Paggo was launched in February 2006 by Oi, a mobile operator

in Brazil, in association with Paggo, a small technology company.

In April this year, Oi Paggo had 1 million customers using the

service at some 40,000 merchants. The service signs up about

6,000 to 7,000 customers each day.

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

Short description Brazilian company Samba38 Tecnologia e Servicos offers an SMS-

based service which allows consumers to top-up prepaid mobile

phone accounts as well as make mobile payments. The service

was developed by Brazilian company Alimutu Technologies

Management .

In order to gain access to the mobile payment service, customers

can apply for the Samba38 debit or credit card Private Label

Samba38 (mobile phone and plastic). If the application is

approved, the customer receives a small credit directly available

in Samba38 credits which can be used via a mobile telephone to

make payments. This service is made possible through business

agreements with Samba38's financial partners.

Point of sales that accept Samba38 payments can use their

Samba38 credits to pay other bills along the

purchase/distribution chain. The service will be used by wireless

operators in Brazil covering over 60 percent of the mobile

payments market.

The service offers prizes to frequent users.





Secured through Not disclosed (website offline)

Cost for usage Not disclosed (website offline)

Partners Technology: Alimutu, MNOs: Claro, CTBC, Oi, Sercomtel,

Telemig, TIM and Vivo

Additional

information

Visa Paywave Guatemala

Guatemala

Short description Users will be able to pay with their mobile by waving their phone

in front of terminals installed in fast food restaurants and

cinemas participating in the trial. 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

Partners Uno Bank, Industrial Bank, Visanet

Additional

information

The pilot is only available in selected fast-food restaurants and

cinamas. Only 200 cardholders are invited to participate. The

pilot was announced in October 2008.

Potential With widespread adoption of NFC-enabled phones still years away

the future of NFC-based mobile payments in Guatemala does not

look too bright. Merchants and consumers will have to be heavily

incentivised in order to get them aboard for a commercial roll-

out – but then the business case is not viable.


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.


Type of technology Call

Domain Mobile POS

Secured through

Cost for usage

Partners Movistar, Visanet

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).

Subscribers need to download an application onto their mobile

telephone. With the application, subscribers can pay bills, make

money transfers and withdrawals using their Diemo wallet.



Domain M-Payment

Secured through PIN

Cost for usage Not disclosed, section of the site offline.


Partners XIUS-bcgi, Digitel

Additional

information

The service was launched in August 2008

Diemo has signed with XIUS-bcgi for a three-year, USD 15 million

contract to provide mobile banking and related services in South

America and elsewhere. XIUS-bcgi is to provide security software

for the service, client software for each mobile phone and

network support.

Potential The mobile banking service is completely new service on the

market in Venezuela. Most of its citizens are unbanked, but

mobile phone penetration is about 75%. This service really fulfils

a market need.

7.4 Middle East and Asia

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

Cost for usage

Partners


Additional

information

M-Paisa will be used by organisations such as Afghanistan's The

First MicroFinanceBank and FINCA a global microfinance

institutions.

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

Secured through Codeword for confirmation


Partners Smart, MTC Vodafone, MasterCard

Additional

information

The initiative was announced in February 2007

Potential Filipino migrant workers in Bahrain typically do not have a bank

account in Bahrain, as for the most part, they are paid out in

cash. A bank transfer to send money home is therefore out of the

question. Mobile money transfer therefore is a good alternative.

SSL Wireless

Bangladesh

Short description SSL SMS Banking is a service that enables Bank's customers to


access their accounts through SMS.

SSL SMS Banking allows Bank’s customers to access information

and perform certain transactions on their account by using their

mobile phone to send SMS in a predefined format to assigned

short codes like 6969 for example.

The possibilities are:

Account balance enquiry, customer notifications, mini statement

requests, order for money transfer from customer’s one account

to another within the bank, pay utility bills by customer’s mobile

phone.



Domain M-Banking

Secured through PIN


Partners SSL Wireless, Islami Bank, Grameenphone, Aktel, Banglalink,

Warid Telecom, CityCell and TeleTalk.

Additional

information

The service was launched in August 2008.

Bangladeshi Mobile services provider SSL Wireless and Islami Bank

Bangladesh, a private banking and financial institution in

Bangladesh, have signed an agreement to provide mobile banking

services in Bangladesh for all the major telecommunication

services providers, including Grameenphone, Aktel, Banglalink,

Warid Telecom, CityCell and TeleTalk.

Potential The service is an additional channel to the yet existing banking

channel. Just like American mobile banking methods, it just

offers services via an additional channel, but the Bangla Deshi

method is not for free – a major inhibitor.

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


based on SMS technology. Customers can use the WING Cash

Xpress to cash in or cash out as well as to purchase goods and

services. WING is targeting those Cambodian customers who are

generally un-banked, but nevertheless have important financial

service needs.

Type of service Mobile POS, Mobile banking




Cost for usage

Partners

Additional

information

EasiRemit

www.chinaunionpay.com – China and Singapore

Short description OCBC Bank and China Unionpay collaboration on remittance.

EasiRemit, a new remittance service available via OCBC Mobile

Banking as well as OCBC ATMs is the first real-time remittance

service to China and OCBC Bank is also the first and only bank in

Singapore to tie up with CUP to offer such a remittance service.



Domain M-Banking

Secured through


Partners

OCBC Bank / China Unionpay is the only National Bankcard

Association in China. EasiRemit will be launched with four CUP

member banks namely Bank of Shanghai, Dongguan Rural Credit

Cooperatives Union, Fujian Rural Credit Union and Hunan Rural

Credit Union.

Additional

information

The beneficiary also enjoys the convenience of having the money

credited immediately to his bank account in China, instead of the

usual three to five days’ waiting time that conventional


remittance services typically require.

Potential With a large Chinese community in Singapore, bridging the

Singapore - Chinese remittance gap. It is the first real time

service in its kind. The costs associated with this service are not

disclosed yet, but if it is in the range of traditional methods, it

has a valuable competitive advantage is high reach and real time

transfers.

UMPay

www.umpay.com/englishumpay/index.htm – China

Short description UMPay offers financial institutions in China a mobile payments

platform allowing for several mobile payments options. These

options include: micropay (charged to the telephone bill), pre-

paid mobile wallet, NFC-based POS payments


Type of technology SMS, USSD, WAP/Internet, IVR, NFC

Domain M – Payment, M - Banking

Secured through PIN

Cost for usage Depends on technology used and financial services provider

Partners MNO: China Mobile, Financial: China Union Pay, Participating

banks: 19, a.o.: Bank of China, Agricultural Bank of China,

Construction Bank of China, Bank of Communications, HSBC

Additional

information

The service ONLY works for China Mobile subscribers – over 450

million in number. The different UMPay services claim to have an

aggregated amount of 100 million users.

The Chinese m-payment market is dominated by UMPay, a joint

venture between an inter-bank credit card organisation China

UnionPay and mobile operator China Mobile, the world's biggest

mobile carrier in terms of subscriber numbers (415 million

customers). Since it was launched in 2004, UMPay’s main mobile

payment service has reached over 40 million registered users,

including inactive accounts.


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.

The service was launched, following more than a year of internal

testing. Alipay has closed a similar deal with another Chinese

carrier China Telecom.

In order to make m-payments via Alipay, users will need to link

their mobile number to their Alipay accounts and configure their

mobile payment service. By sending SMS commands to a specific

number, mobile phone users will be able to make transfers and

buy goods of up to CNY 200 (approximately EUR 22) per

transaction.





Cost for usage None

Partners Alipay, China Mobile

Additional

information

mChek

www.mchek.com - India

Short description mChek is a broad mobile payments solution linked to the

consumer’s credit or debit card that can be used for remote as

well as point of sale mobile payments as well as mobile

remittance.

Type of service Mobile POS, mobile remittance

Type of technology SMS. WAP

Domain M-Payment

Secured through User PIN


Cost for usage Free

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.


Type of technology SMS, WAP/Internet

Domain M-Banking

Secured through MPIN (mobile PIN)

Cost for usage None

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


transaction details and amount.



Domain M-Payment


Cost for usage Free for consumer, merchant charges not disclosed

Partners Oxigen

Additional

information

The service started in July 2008.

Oxicash plans to distribute these services to Oxigen’s pan-India

retail network of approximately 50,000 touch points, which is

expected to expand to 250,000 by 2010.

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.

State Bank of India mobile banking

http://www.statebankofindia.com/viewsection.jsp?lang=0&id=0,1,21,691 – India

Short description In the process of providing banking facilities in un-banked regions

of India, Airtel and State Bank of India pilot a project in the

Himalayan village of Pithoragarh. In June 2008, this pilot was

turned into a national roll-out.



Domain M-Banking

Secured through PIN


Partners Airtel, State Bank of India, Spanco Telesystems

Additional

information

Three wrong MPIN entries will block the MBS to the account for

the day and two consecutive blockages will remove the data from

the mobile banking application in the handset. The customer will


have to re-register for the service following the registration

process explained above, should he/she desire to continue to

avail the services from the State Bank of India.

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.

Type of service Mobile Banking, Mobile Remittance



Secured through Username and password

Cost for usage Free during trial – remittances against a fee, not disclosed

Partners Bank: Yesbank; Technology: Obopay

Additional

information

Citi NFC trial Bangalore

India

Short description An NFC trial where trial users are equipped with NFC-enabled

phones to make purchases and to pay for public transport. The


trial started in April 2009. Citi Group’s aim is to collect enough

data on consumers’ use of mobile phones ready for contactless

payments to demonstrate to handset manufacturers and carriers

that including NFC in phones would be worth the investment.

Type of service Mobile POS, Mobile ticketing




Cost for usage Openi

Partners Bank: Citigroup

Additional

information

Citibank M-Banking India

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.

To use Citi Mobile banking service, the customer needs a java-

enabled mobile phone with a GPRS connection. Citi Mobile works

with the customers’ 16-digit debit/credit card number and

existing IPIN. The service is free of charge. The application can

be downloaded by sending an SMS.




Secured through PIN

Cost for usage None

Partners Bank: Citigroup

Additional

information


PayMate India

www.paymate.co.in – India, Nepal, Sri Lanka

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.

Upon registration, a consumer has to link his PayMate account to

a bank account or credit card. After that, he will receive a four-

digit PIN, which is used to authorise transactions.

PayMate can be used with online and offline merchants. After

initiating a transaction, the end user receives a call back from an

automated IVR, requesting a PIN. After a successful PIN entry,

the user gets a confirmation SMS which completes the purchase.

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.


Type of technology Call/Voice and SMS (confirmation)



Cost for usage None for end consumer

Partners MNOs: MNO-independent in India. Nepal: Nepal Telecom

Banks: Bank of Ceylon (Sri Lanka), Everest Bank (Nepal), 14 banks

in India

Additional

information

The transaction limit is IRS 2,000 (EUR 30). Paymate plans to add

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,


and use the i-mode network to add e-money credit, download

tickets, or pay for products and services. There are discount

bonus points and other special privileges exclusively for Osaifu-

Keitai-users.

Type of service Mobile ticketing, mobile POS


Domain M-Payment

Secured through SIM

Cost for usage

Partners NTT DoCoMo’s

Additional

information

Osaifu-Keitai mobile phones equipped with FeliCa contactless IC

chips. FeliCa is a contactless IC card technology developed by

Sony Corporation. In addition to facilitating remote payments,

the NTT DoCoMo phones enable consumers to use their devices as

a substitute for cash and cards at vending machines and

merchants’ points of sale. The Mobile Suica application can be

used to pass through automatic ticket gates at train stations.

Mobile Suica also works as e-money for purchases at stores.

KDDI au's Osaifu-Keitai ‘EZ Felica’

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


Cost for usage

Partners

Additional The number of subscribers to au 'Osaifu Keitai', 'EZ FeliCa',


information

exceeded 10 million on November 25 2007. 'EZ FeliCa' is a service

that can be used in a variety of situations, such as the purchase

of train tickets and commuter passes, or as e-money, credit

cards, and membership verification. At 'EZ FeliCa site', users can

check out information related to 'Osaifu Keitai', and conduct

location-based searches for shops which provide the 'Osaifu

Keitai' service. KDDI will actively continue to expand services for

'EZ FeliCa' to meet the diverse needs of customers.

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.





Cost for usage Transfers between two Shinginko accounts or between a

Shinginko bank account and Bank of Tokyo-Mitsubishi UFJ account

are free of charge

Partners Bank of Tokyo-Mitsubishi UFJ, KDDI telecom

Additional

information

The aim is to reach 2.4 million account holders by the third year,

and 3.4 million in the fifth year as well as JPY 1.5 trillion (EUR

10.7 billion) in deposits.

In June 2008, Bank of Tokyo-Mitsubishi UFJ and telecoms

operator KDDI announced that their mobile internet banking joint

venture has been licensed by Japan’s Financial Services Agency.

The New Bank (Shinginko in Japanese, meaning 'New Bank'),

offers a full line-up of financial services oriented to individual


consumers, capitalising on the strengths of the mobile phone.

S! FeliCa

http://mb.softbank.jp/mb/en/service/advanced/sfelica/ - Japan

Short description S! FeliCa’ is a ‘Osaifu-Keitai’ (mobile wallet) service that lets

customers use their handsets in a variety of ways, such as for

transportation and commutation ticketing, electronic money

shopping, credit card, membership card and point card services.





Cost for usage

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.

Type of service Mobile banking, mobile remittance




Cost for usage Opening account is free of charge, other fees not disclosed

Partners MNO: Kuwait Telecom Company; Technology: Macalla, Turnkey

Technologies

Additional


information

DiGi Remit

www.digi.com/my - Malaysia

Short description To transfer money from Malaysia to Bangladesh, Indonesia and

the Philippines via SMS. DiGi updates both sender and receiver via

SMS on each transaction.



Domain M-Payment

Secured through PIN

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

information

The service was launched in October 2007 with Citibank. With

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.

The signing up takes one day.

Potential The service competes with traditional remittance services like

bank transfers and Western Union. The fees for DiGi Remit are

slightly lower than traditional remittance services and have a

higher reach, especially on the recipients side than bank

transfers.

Mobile Visa Wave Payment

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.


Visa Wave is EMV-based and uses the strongest EMV authen-

tication - dynamic data authentication (DDA) - for all

transactions.

Mobile Visa Wave payment in Malaysia combines NFC (near field

communications) with Visa Wave contactless card technologies,

building on the existing contactless platform, which amounts to

2,500 outlets and 160,000 cards, with five issuers and four acquir-

ers of Visa Wave transactions



Domain M-Payment

Secured through PIN (not always needed)

Cost for usage User: none, merchant: credit card charge

Partners Maybank, Maxis Communications, Visa

Additional

information

Launched April 2006

Potential A large-scale NFC initiative, aimed at a tech-savvy nation. Mobile

phones in countries like Malaysia, Singapore, Japan, South Korea

and Taiwan play a far greater role in every-day life than in

Europe and North America. This enhances adoption. Also,

Malaysians (at least those living in Kuala Lumpur) are already

used to NFC cards for they use it in public transport of the

capital.

OneSMART PayPass

Malaysia

Short description OneSMART MasterCard PayPass is the industry’s first

internationally accepted contactless EMV payment solution, in

Malaysia. PayPass combines both contact and contactless

interfaces on one chip, enabling regions where EMV smart cards

predominate, such as the Asia/Pacific, to reap the speed and

convenience benefits offered by contactless payments.

OneSMART PayPass provides Malaysians with a fast and

convenient way to pay for their small everyday purchases.

PayPass allows cardholders to “tap & go” at merchant outlets

around the world that are equipped with PayPass readers.


The system is globally interoperable with other PayPass systems.

PayPass subscribers from other nations can use the Malaysian

system too.



Domain M-Payment

Secured through PIN (not required for each transaction)

Cost for usage No charge for the consumer. Merchant charge not dislosed

Partners MasterCard, Smart Card Alliance

Additional

information

The payment method was launched in February 2006 in Malaysia

PayPass transactions are said to be just as safe as traditional

payment card transactions.

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.

As part of the service, Maxis offers its customers the Visa

payWave –enabled Nokia 6212 classic handsets. To access the

service, Maybank Visa account holders need to download their

Visa payWave credit account details to their Nokia 6212 classic

handset over the Maxis wireless network. Once the account has

been personalised on the phone, account holders can make

purchases at any of the 1,800 merchant outlets that currently

accept Visa payWave in Malaysia.

The contactless chip embedded in the device also powers a

number of additional functions, including a contactless transit

application. This feature enables Malaysian commuters to pay for

charges while using metropolitan transit systems, bus terminals,

highway toll gates and car park facilities at more than 3,000

contactless payment touch points throughout Malaysia.

Type of service Mobile POS, Mobile Ticketing




Secured through SIM

Cost for usage None during trial

Partners MNO: Maxis; Financial: Maybank, Visa; Other: Nokia

Additional

information

XacBank Mobile Banking

http://technology.cgap.org/category/projects/mongolia-xacbank/ - Mongolia

Short description XacBank, a provider of development finance in Mongolia, has

partnered with global microfinance body CGAP to launch a new

mobile phone banking service. XacBank expects the service to

reach out to as many as 300,000 Mongolians (out of 2 million).

The new service will expand the availability of deposits,

withdrawals, loans, remittances, and cash transfers to rural

locations. Commenting about the launch, CEO of XacBank

Ganhuyag Ch. Hutagt said he hopes that XacBank will be able to

make it affordable for some of the 40 percent of Mongolians who

only use cash today to embrace mobile banking. CGAP is

supporting XacBank with technical assistance and funding.




Secured through PIN

Cost for usage not known yet

Partners CGAP and XacBank

Additional

information

The initiative was announced in July 2008, but has not been

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.

In order to subscribe to the service, the consumer needs an


internet/wWAP enabled mobile phone.



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.

Utility bill payments have a fee of PKR 20 (EUR 0.20)

Partners Mobilink, Citibank Pakistan, KASB bank and Atlas Bank

Additional

information

Users can subscribe through Mobilink or through one of the

participating banks.

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.

G-Cash’s main functions are cash deposit and withdrawal

(accompanied by ID, at Globe offices and participating retailers),

transfers of credit to the prepaid account (i.e. airtime top-up),

transfers of airtime from one user to another, cash to and from

other users, cashless purchasing, bill payments and inbound

international remittances. Interestingly, registration for the G-

Cash service can be activated over-the-air (OTA) i.e. without

physical ID verification.



Domain M-Payment

Secured through PIN

Cost for usage Minimal charge of PHP 1.00 (EUR 0.02) per GCash transaction


Partners None

Additional

information

G-Cash was introduced by Globe Telecom in October 2004.

Globe Telecom offers the G-Cash service with an electronic

wallet feature that allows users to send and receive cash and

make payments including bill payments, donations and online

purchases via texting. Once connected to the Western Union

service, operators will be able to use their own mobile wallet

software to enable person-to-person mobile money transfers over

Western Union's cross-border remittance network. The service

enables consumers to transfer money to or from mobile wallets

and will offer a global network of Western Union Agent locations

for cash-to-mobile and mobile-to-cash transactions.

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

Secured through PIN

Cost for usage 1% of transacted amount with a cap of PHP 50,000 (EUR 800)

Partners Mobiel phone company Smart and MasterCard

Additional

information


Smart bank service

Saudi Arabia

Short description The Quick Pay Remittance Service is NCB's remittance offering

which will utilise Smart Money as the beneficiary account for

funds sent to the Philippines. 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


Partners Philippine operator Smart Communications has partnered with

Saudi Arabia's National Commercial Bank (NCB) to jointly launch

an international remittance service utilising the Smart Money

platform.

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



Partners StarHub and EZ-link

Additional

information

This launch of one of the largest public trials of such mobile

payment technology, kicked off October 2007.

It saw 1,000 participants use their phones like electronic wallets.

They were able to tap their phones to pay for bus and train rides

as well as items at McDonald's and 7-Eleven convenience stores.

About 20,000 ez-link machines can read these special made-in-

Singapore phones, which are loaned to the trial users for six

months.

SingTel

www.singtel.com - Singapore

Short description Mobile operator Singapore Telecommunications (SingTel),

Network for Electronic Transfers Singapore (NETS) and United

Overseas Bank (UOB) have launched an NFC mobile phone

payment trial in Singapore. The companies utilise technologies

provided by US company ViVOtech, including NFC mobile payment

wallet, Over-the-Air (OTA) payment, coupon delivery and

redemption.

The trial introduces a Stored Value Purse on NFC mobile phones

and OTA servers to enable downloading and top-up of stored

value accounts on the NFC phones. SingTel users can download a

SingTel wallet application that will allow them to store and top

up value on the mNETS payment application in their phones at

any time. Users are able to make payments using NETS FlashPay

by flashing their SingTel mobile phones at more than 500

participating merchants in Singapore, each one equipped with

ViVOpay 5000 NETS FlashPay contactless terminals.



Domain M-Payment

Secured through PIN


Partners SingTel, NETS, UOB, VivoTech

Additional The service was launched in September 2008.


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

Short description Citibank Singapore, Visa and Singaporean mobile operator

MobileOne (M1) launched a three month NFC m-payments trial,

which started 1 April.

Three hundred Citibank Visa cardholders which are also M1's

subscribers take part in the trial. Participants in the trial have

been given NFC-based mobile phones, which are embedded with

a computer chip that contains their credit card details.

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.




Secured through PIN


Partners MNO: M1; Financial: Citibank Singapore, Visa

Additional

information

In February, Singapore’s government announced plans to create

an agency to regulate mobile payments services. The authority is

due to ensure the security of all sensitive financial information

being transmitted wirelessly. It will also make sure mobile

payments systems are compatible with similar systems which will

be rolled out in future.


BankOn

www.keb.co.kr - South Korea

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.

Type of service Mobile ticketing, mobile remittance


Domain M-Payment

Secured through Security card

Cost for usage Fee: A/C transfer to other banks: 500 Won

Partners South Korea Kookmin bank, LG Telecom

Additional

information

In order to use BankOn mobile service, a financial chip should be

installed in an exclusive mobile phone enabled to be installed

with the chip.

K-merce

http://english.ktf.com/eng/ - South Korea

Short description KT Freetel offers K-merce, which enables financial transactions

from the mobile phone, including wireless credit card

transactions, wireless Internet banking, shopping, and obtaining

discount coupons and reservations

Type of service Mobile Ticketing

Type of technology NFC based: integrated circuit (IC) chip/ RFID

Domain M-Banking

M Payment


Cost for usage Free

Partners

Additional

information


Moneta

www.sktelecom.com - South Korea

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.

Type of service Mobile POS, Mobile remittance


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.

Cost for usage

Partners SK telekom: Moneta and M-bank services

Additional

information

The Moneta card is a service that enables you to conveniently and

safely pay for items and services by means of a chip attached to

the cell phone that contains all the functions of credit,

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.

Tesco Visa Wave Trial

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


can also be used to wave and pay at Visa Wave merchants.

To address security concerns, transactions only work when the

Mobile Visa Wave phone is in close contact with a terminal,

ensuring that cardholder data cannot be intercepted between

card and terminal. Additionally, Visa Wave is EMV-based and uses

the strongest EMV authentication - dynamic data authentication

(DDA) - for all transactions.

Mobile Visa Wave payment in Malaysia combines NFC (near field

communications) with Visa Wave contactless card technologies,

building on the existing contactless platform, which amounts to

2,500 outlets and 160,000 cards, with five issuers and four acquir-

ers of Visa Wave transactions



Domain M-Payment



Partners Tesco, LG Card, Samsung, Motorola

Additional

information

Banks have been issuing combined payment and contactless cards

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.

LG Card is South Korea’s biggest card issuer.

KTF Ubitouch Mobile Banking

http://english.ktf.com/eng/ – South Korea

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.

UbiTouch users will be able to check account balances, make

money transfers, and also make deposits and withdrawals.

Subscribers can withdraw money by touching their mobile phone

to one of the 39,000 ATMs on which the UbiTouch mark is shown.


The system uses an ID-sensor. Registering account information is

found into an USIM chip built into mobile phones and users secure

money transfers and cash withdrawals using passwords. South

Korean operators SK Telecom and LG Telecom also plan to adopt

the same service soon.

Ubitouch is the first one-chip multi-banking system. It requires an

application download on the mobile phone.


Type of technology Internet


Secured through PIN

Cost for usage None charged by MNOs. Use is subject to normal charges from

financial institutions. Download of the application is free

Partners MNOs: KTF, SK Telecom, LG Telecom. Banks: All South Korean

domestic banks except Shinhan Bank

Additional

information

KTF has plans to further increase use to global markets in

accordance with the Bank of Korea’s regulatory-standards

approval.

m-Ticketing Transportation Kaohsiung

Taiwan

Short description The mobile ticketing TaiwainMoney Card is an e-ticketing card,

which includes the world’s first MasterCard PayPass chip combi-

card (combination of a contactless card and normal card).

Customers can check in and check out using NFC.



Domain M-Order, M-Delivery



Partners MasterCard, Taiwanese government, Kaohsiung Transport

Additional

information

Launched in October 2005.

The Taiwanese government commissioned the pilot.


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.


Type of technology WAP/Internet and IVR

Domain M-Payment

Secured through PIN

Cost for usage Free for consumers

Partners MasterCard, Visa, Bangkok Bank, Kasikorn Bank, Bank of Asia

Additional

information

Advanced MPay is a 70:30 joint venture firm between the Thai

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.

TMB M-Banking users benefit from the bank's two-factor

authentication systems, which require 128-bit SSL encryption and

a special security system for mobile phones to ensure full

encryption during usage. TMB’s savings and current account

holders may apply for TMB M-Banking through tmbdirect.com,

TMB Bank's ATMs or branches nationwide. The application is free.




Domain M-Banking

Secured through 2 factor authentication

Cost for usage No charge to the consumer, merchant pays an unknown fee

Partners Uno Bank, Industrial Bank, Visanet

Additional

information


Kasikornbank Visa trial

https://ebank.kasikornbank.com/kcyber/login.html - Thailand

Short description Visa and Thai Bank Kasikornbank participate in a mobile

payments trial using Nokia's 6212 NFC-enabled handhelds in

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.





Cost for usage Free during trial period (until 30 June 2009)

Partners Visa, Kasikornbank, Nokia

Additional


information

Bankararasi Kart Merkezi

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

Secured through SIM

Cost for usage Unknown, pilot participants pay no fees

Partners Bank: nine Turkish banks

MNO: two of the three Turkish MNOs

Trusted third party: BKM

Additional

information

The trial is the second NFC trial in Turkey, but the first to aim at

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.

A contactless MasterCard PayPass credit card application is stored

on the SIM card as a secure element.

Venyon is responsible for loading and updating the application

and user data on the SIM card via secure OTA services




Domain M-Payment

Secured through SIM

Cost for usage Unknown, pilot participants pay no fees

Partners Bank: Garanti Bank

MNO: Turkcell

Card: MasterCard

Technology: E-Kart, Venyon, Giesecke & Devrient

Additional

information

In the trial, some 100 Turkcell and Garanti employees and

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.

Dubai Bank Mobile Banking

www.ameinfo.com/173078.html - United Arab Emirates

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


Cost for usage None

Partners None

Additional

information

The service was launched on October 27 2008

Du and Dubai First NFC trial

United Arab Emirates

Short description In May 2009 the two parties started a six-month NFC trial in

Dubai. Consumers link their credit card to their NFC enabled


phone and can make payments at 250 locations at The Walk

shopping promenade. The parties expect to subsequently launch

it commercially, incorporating additional partners.



Domain Mobile payments

Secured through

Cost for usage

Partners MNO: Du. Bank: Dubai First

Additional

information

Standard Chartered Mobile Banking

www.standardchartered.ae/personal/home/en/index.html - United Arab Emirates

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.

Also, the bank recently introduced and IVR self-service and

automated bill payment system with telecommunications

operator Etisalat. The bill payment system enables customers to

pay their Etisalat bills directly from their debit or credit cards.

Existing I-Banking customers can use their username and

password to access the mobile banking service.


Type of technology WAP/Internet and IVR


Secured through Username / Password

Cost for usage None

Partners MNO: Etisalat

Additional

information

The service is only available for Internet-enabled mobile phones

and can be seen as an add-on to the already existing internet

banking services the bank offers.


Mashreq Paymate Banking

www.mashreqbank.com - United Arab Emirates

Short description UAE-based bank Mashreq has launched a mobile payments service

in the UAE with Indian mobile commerce company PayMate.

The service enables clients to use their mobiles to purchase

products from retailers (POS or online) as well as pay their utility

bills. Moreover, software widgets will allow users to purchase

movie and flight tickets. With each payment, the amount will be

charged directly to a customer's credit card or bank account (in

the case of PayMate registered users).

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.

While making payments, Mashreq bank customers can either

insert their card details on the mobile application or enter the

PayMate PIN. With PayMate, payments are authorised using a 4-

digit PIN chosen by the user. The service’s security is ensured

through a 2-factor PIN authentication over interactive voice

response (IVR) and banking grade data security (PCI-DSS 1.2

certified).




Secured through 4 digit PIN and IVR


Partners Bank: Mashreq Bank; Platform: PayMate

Additional

information


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.

Mobile phone users surf to boq.mobi to access the online banking

account on the mobile phone.

Users can transfer money, pay bills, authorise payments, view

transaction history. The use of a token is recommended, but not

necessary.





Cost for usage None

Partners Sandstone

Additional

information

The service was introduced in September 2007.

The mobile banking solution is from Sandstone Technology (North

Sydney), vendor of Internet and mobile banking systems as well

as loan origination processing systems. The solution features

efficient coding and compressed file sizes for fast response time.

Very little data is physically transmitted across the mobile

network.

Telstra, NAB, Visa

www.telstraenterprise.com – Australia

Short description Contactless mobile payments is the first Australian mobile

application of NFC, which will see Nab Visa credit card details

securely loaded onto a Telstra SIM. For consumers, making a

purchase will mean holding their mobile against a reader in a

shop, then the payment is automatically loaded onto their Nab

Visa credit card account. This technology can enable faster and


easier payments which can mean less time at the checkout.

Contactless Mobile Payments are already being used and trialed

overseas as part of the GSM Association (GSMA) initiative and, as

part of this, Telstra in partnership with NAB and VISA have

launched this proof of concept trial in Melbourne.



Domain M-Payment

Secured through SIM

Cost for usage Free for pilot participants

Partners MNO: Telstra

Financial institutions: Visa, National Australian Bank

Additional

information

The proof of concept trial which consists of approx 250

participants will encourage the use of Contactless Mobile

Payments to make purchases under the value of AUD 35 around

the Docklands area. The participant’s mobile phone will be fitted

with Contactless Near Field Communications (NFC) technology

and the SIM loaded with a NAB Visa card application.

This Australia first trial encourages participants to explore the

world without a wallet or purse – potentially, it could replace all

plastic cards including loyalty, ticketing and credit cards.

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.

The service allows mobile phone customers to transfer money and

pay bills. The system was inaugurated in December in Yaoundé by

Express Union. Mobile Money is available through a network of

partners including micro-finance institutions, companies that

provide cash for fund transfers and other physical outlets. The

network is based on a central service which receives data from

electronic payment terminals located in service partners’ outlets.





Secured through Identification at cashing point


Partners Express Union Cameroon

Additional

information

txtNpay

www.textnpay.net – Ghana

Short description

Txtnpay is a mobile phone-based payment system that enables its

users to send money to anyone with a mobile phone (in Ghana for

the time being, but there are plans to expand abroad), pay bills,

buy pre-paid airtime, check their bank balance, and purchase

goods and services. The txtNpay wallet is an electronic stored

value account. Customers fund the wallet by buying txtNpay

electronic cash at a partner outlet or making a transfer from

their bank account. txtNpay works with any mobile phone and

mobile operator in Ghana.

Every transaction is secured with a 5-digit PIN.

Type of service Mobile Remittance

Type of technology SMS, WAP/Internet



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.

Partners Brand owner: Africaxpress

Financial; Zenith Bank, First Atlantic Merchant Bank, ADB Bank

MNO; OneTouch, Kasapa, Tigo, MTN


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

www.orange.ci/omoney – Côte d’Ivoire

Short description Orange Money is a pre-paid wallet, managed on the mobile

telephone. Orange Ivory Coast handles the services’ platform and

marketing, while BNP Paribas’ Ivory Coast subsidiary BICICI is in

charge of issuing and guaranteeing the electronic money. With

Orange money, Orange customers can deposit and withdraw up to

XOF 100,000 (EUR 152) from the Orange Money account, make

person-to-person money transfers, top-up their airtime credit

with up to XOF 10,000 (EUR 15.24) and pay bills. In order to use

the service, customers have to open an Orange Money account at

a accredited Orange agent.which is activated for free without

requiring any minimum deposit. Users do not need bank accounts

to subscribe to the service.

Type of service Mobile banking, Mobile remittance


Domain M – Banking & M – Payment

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

Partners MNO: Orange Telecom

Financial Institution: BNP Paribas (BICICI branch)

Additional

information

Orange plans to roll out this service to other African countries,

Mali and Senegal are the first to follow.


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.

The infrastructure of this initiative is based upon the M-PESA

infrastructure. Safaricom (owned by Vodafone) is partner in both

the M-PESA initiative and in this Eazzy 24/7 initiative.

Via Eazzy 24/7, the following services are available:

account balance enquiries

funds transfer

order of statements

stop cheque or payment instruction

utility bill payments

loan approval notification



Domain M-Payment

Secured through PIN

Cost for usage Transfer from EBK account to EBK account: KES 50 (EUR 0,50)

Transfer from EBK account to other bank’s account: KES 150-200

(EUR 1,50 – EUR 2,00)

Partners Safaricom (Vodafone)

Additional

information

Launched in September 2008. Equity Bank Kenya has 2.6 million

customers who have 4.5 million accounts countrywide.


Cooperative Bank of Kenya mobile banking

www.co-opbank.co.ke/Main-Site/Home/Personal-Banking/Electronic-Banking/Mobile-

Banking- – Kenya

Short description M-Banking is an SMS-based telephone banking service developed to

allow our customers enquire their bank account balances, purchase

air time, request for mini statements, make utility payments and

receive automatic salary alerts when cash enters their accounts.

This product allows you greater accessibility and convenience in

running your account by bringing all these services at your finger

tips.

Since its inception in 2004, M-Banking has become very popular

with customers, and today counts in excess of 200,000 customers as

subscribers.


Type of

technology

SMS



Cost for usage Equal to normal banking fees

Partners

Additional

information

M-PESA

www.safaricom.co.ke/m-pesa - Kenya

Short description Safricom offers an SMS-based payment and money transfer

service based on SMS and pre-paid accounts. Through M-PESA a

user can deposit or withdraw money, transfer money to another

M-PESA customer or send money to a non M-PESA customer, buy

Safaricom prepaid airtime and manage the M-PESA account.

In December 2008, Safricom announced an extension of the

service with UK-Kenya remittances in cooperation with Western

Union.




Domain M-Payment

Secured through PIN

Cost for usage

M-PESA contains the following charges:

There are no charges for depositing cash into an M-PESA account,

or for topping up airtime.

Sending money to an M-PESA user costs KES 30 (EUR 0.30) for a

transfer between KES 100 (EUR 1.01) and KES 35,000 (EUR 354).

Sending money to a non-M-PESA person costs between KES 75

(EUR 0.76) and KES 400 (EUR 4.04) for a transfer between KES 100

and KES 35,000.

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.

Partners MNO: Safaricom, Bank: Citigroup, for international remittances:

Western Union.

Additional

information

M-PESA was launched in February, 2007 in Kenya by Vodafone's

Kenyan subsidiary Safaricom. Once registered, a customer can

send funds to any other phone number, on any network. The

receiver gets a text message that can be taken to a re-seller

agent and cashed in, enabling person-to-person money transfer

instantly over large distances. Customers can also use their M-

Pesa account balance to buy goods and services, download or

withdraw cash at Safaricoms re-seller airtime distribution agents.

It comes with a full transaction tracking and reporting service and

anti money laundering measures and is being developed to allow

international use for remittances, allowing Kenyans overseas to

send money home quickly and much more cost effectively than

most alternative means. It is aimed at mobile customers that do

not have a bank account, and can only be used inside Kenya. Only

Safaricom subscribers can send money by M-PESA, but the

recipient need not be a subscriber or a bank account holder. A

user can have up to KES 50,000 (EUR 504) in their M-PESA

account, with no minimum balance, and charges are levied on a

pay-as-you-go basis.


Standard Chartered M-Banking

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.

In order to use the service, the bank’s customers have to

physically register with the bank. Currently, the service is only

available to the Safaricom and Zain subscribers. The service is

also available to customers using international roaming and

transactions will be limited to a single registered mobile number

for security purposes.

mBanking is based on the Unstructured Supplementary Service

Data (USSD) standard for transmitting information over GSM

signaling channels. The service was also lauched in Tanzania in

February 2009.




Secured through PIN


Partners MNO: Safaricom, Zain; Bank: Standard Chartered

Additional

information

Zain M-Wallet

www.zain.com/muse/obj/portal.splash – Kenya, Tanzania, Uganda

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.

The pilot project will replace Sokotele, Zain’s previous money

transfer service which was in operation in several East African


countries. Zain enables customers to use their mobile phone to

pay for goods and services, pay electricity bills (at present only in

Kenya and Tanzania), send money to friends and family, transfer

and receive money to and from their bank accounts, withdraw

cash, top up airtime account or top up someone else's account as

well as manage their bank accounts. Customers will be able to

send credit to other Zain customers across Kenya, Uganda and

Tanzania.

With Zap, customers in Kenya are allowed to send and receive

between KES 50 and KES 35,000 up to 25 times in a day,

according to new regulations imposed by the Central Bank of

Kenya. The same daily transaction limit applies to Safaricom’s M-

Pesa money transfer service.





Cost for usage Opening account is free of charge, other fees not disclosed

Partners MNO: Zain; Banks: Citigroup, Standard Chartered; Technology:

Oberthur Technologies,

Additional

information

Mi-Pay Sierra Leone

www.mipay.com - Sierra Leone

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.

The deals follows the launch of Mi-Pay’s mobile money transfer

service in Sudan, which is being rolled out by agent-based Saraf

Mobile across North Africa. The service precedes the anticipated

announcement of an East African mobile banking deal.





Secured through Identification upon receipt of money


Partners Platform: Mi-Pay

Additional

information

Cell Pay Point

www.fnb.co.za - South Africa

Short description Customers registered for FNB's cellphone banking can use Cell Pay

Point to purchase goods online directly from any of their

transactional accounts. 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.

When Cell Pay Point, FNB’s online payment solution, is chosen as

the payment mechanism, the vendor displays a dial string which

the customer dials. The customer is authenticated by their

mobile PIN, and the purchase is confirmed by the handset

without disclosing any banking or personal details.



Domain M-Payment


Cost for usage Free for customer, merchant fee not disclosed by FNB

Partners Internet Solutions, FNB

Additional

information

The service started in July 2008.

FNB has 700,000 account holders

Customers who won’t be charged bank fees for goods purchased

using Cell Pay Point.


MTN banking

www.mtnbanking.co.za/site/MTNBanking/index2.html - South Africa

Short description MTN Banking is a division of Standard Bank, and is operated as a

joint venture between Standard Bank and MTN. MTN Banking

consists of two components, MTN MobileMoney and MTN Credit

Card. The MTN MobileMoney account is a fully functional bank

account integrated into Standard Bank’s systems and thus into

the national payments system (NPS). MTN banking is co-

developed by mobile operator MTN and the Standard Bank.

MobileMoney offers the following payment features: P2P money

transfers, in-store payments, making and receiving payments to

and from any bank account in South Africa, authorising debit

orders, initiating stop orders, account payments to various bank-

defined beneficiaries, certain municipalities and Telkom, buying

prepaid airtime and electricity. Prepaid airtime can be purchased

for other users and for users on other networks.


Type of technology

WAP / Internet - Mobile Money is a full bank account. It can be

managed remotely via Internet or Mobile.

Domain M-Banking

Secured through SIM

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.

Additional

information

MobileMoney is a transactional account, and its functionality

accessed through the use of an MTN SIM card. MTN is the primary

service provider, responsible for account opening, marketing and

distribution. A client is offered an option of two cards: a

MobileMoney debit cash card or MTN MasterCard functioning as a

credit card, which allows for internet operability, but with a zero

credit limit.


POC it

www.pocit.co.za – South Africa

Short description POCit is a personal payments tool that allows consumers to make

payments via their credit card using their mobile phone.

POCit allows subscribers to receive, request, pay money, buy

airtime and pay medical bills.



Domain M-Payment

Secured through Login name and PIN

Cost for usage Until December 31, 2008 – free

From January 1, 2009:

Receive payment ZAR 0.10 (EUR 0.01)

Request payment: ZAR 0.30 (EUR 0.02)

Make payment: Up to ZAR 2,000 (EUR 153) free, then 2%

Partners Visa, Mastercard, Capitec Bank

Additional

information

Only one account can be stored on one mobile phone. The use of

multiple POCit accounts is not allowed.

Recently (January 2009) POCit added POCit Elect to its service

offering, enabling clients to make donations to selected charities

without a fee.

SWAP Mobile

www.swapmobile.co.za – South Africa

Short description SWAP uses the USSD phase 2 mobile network protocol as its

preferred method of facilitating transactions and communicating

with customers. USSD 2 is supported by all South African cellular

operators and GSM cellphones, is faster than SMS and allows for

real time interactive communications between customer

cellphones and the SWAP system.

SWAP Mobile is has wallet functionality. Users can add funds to

their wallet with an electronic fund transfer, or link their bank

account or credit card for full SWAP Wallet functionality.




Domain M-Payment

Secured through PIN

Cost for usage Free for consumer, merchant pays the following fees:

Activation of account ZAR 20 (EUR 1.52)

Batch transfer fee (every time the merchant wants his

accumulated credit to be transferred to his bank account): ZAR 5

(EUR 0.38)

Transaction fee: 3.5%

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

information

The company’s target for next year is to secure 10 percent of the

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

www.wizzit.co.za - South Africa

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

Secured through PIN

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.

Partners South African Bank of Athens

Additional Wizzit offers a low cost transactional bank account that uses cell


information

phones for making person-to-person payments, transfers and

prepaid purchases. It is accompanied by a Wizzit maestro debit

card for making payments in the retail market. Wizzit defines its

target market as the unbanked and under-banked population of

South Africa. It operates without branches, and has positioned

itself as a virtual bank. Clients open accounts through one of

1400 ‘Wizzkids’, who are members of the local community and

can communicate with customers in their own language.

Cellphone Banking Absa

www.absa.co.za – South Africa

Short description Absa was the first South African bank to introduce Cellphone

Banking services in the year 2000.

Absa’s Cellphone Banking services are provided across three

different technological platforms (secure SMS, mobile WAP

internet and USSD), catering for different customer segment

needs.

Cellphone Banking allows clients to load beneficiaries and make

payments, purchase airtime, make inter-account transfers, view

balances and statements, send notices of payments, and make

cardless ATM payments using Absa’s CashSend facility.

The most popular type of Cellphone Banking transactions are

balance enquiries, mini-statements and prepaid top-ups.


Type of technology SMS, WAP/Internet, USSD



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


information to 5000 new clients registering for Cellphone Banking each day.

Absa claims to have 4 million clients on its mobile banking

service.

There are 1.7 million logons to Absa’s Cellphone Banking services

each month. 40,000 SMEs use Absa’s Cellphone Banking.

Saraf Mobile

Sudan

Short description Saraf-Mobile offers people in Sudan the opportunity to transfer

money immediately from one recipient to another irrespective of

their location. People can send money to family and friends;

businesses can receive payment direct from customers’ mobiles;

and financial institutions can target and serve the huge mobile

consumer base that exists within the region. All that’s required

to make a transfer is the recipient’s mobile phone number.

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.




Secured through PIN


Partners MNO: Saraf Mobile, Platform: Mi-Pay, Financial service solutions:

Isys

Additional

information

The new pan-Arab service is the first phase in a planned roll-out

which will cover 22 countries within the Middle East and North

Africa.


CelPay

www.celpay.com – Zambia, Tanzania and D.R. Congo

Short description Celpay enables citizens of Zambia, Tanzania and Democratic

Republic of Congo (former Zaire) to make person-to-person

payments via SMS. Customers can load their wallet by paying a

Celpay agent and can send it to benificiaries, who can retrieve

the money in cash from Celpay agents.

In Zambia, Celpay has an independent distribution network which

comprises of 100 agents, 6 major banks and recently launched a

partnership with Zambia Postal Services Corporation which has

over 200 post offices and postal agents. This makes Celpay the

single biggest distribution network available in Zambia.





Cost for usage Depends on

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.

The future plans of Celpay include expansion into Zimbabwe and

Kenya.

Mukuru.com

www.mukuru.com - Zimbabwe, South Africa

Short description Mukuru is an online storefront that can be accessed by internet or

phone. It is a quick, easy way to do money transfers, buy fuel,

pay for subscriptions or top up a friend or relative’s mobile


phone. It’s a UK – Zimbabwe/South Africa remittance service.

UK customers can sign up and transfer money to Mukuru’s bank

account. Mukuru then will transfer the money to the intended

recipient the next day via a voucher, delivered on the recipient’s

mobile telephone.



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

information

The participating petrol stations vary from month to month, but

there are always member stations within the Harare city limits.

The system plans to launch similar services in Kenya, Malawi and

Zambia.

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.




Secured through PIN


Partners Technology: E-Fulusi, Monitise


Additional

information

Monitise has recently been awarded USD 1.5 million representing

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

www.mtn.com - Uganda, Benin, Congo Brazzaville, Guinea Bissau, Guinea, Liberia

Short description Telecommunication services provider MTN Group offers m-

banking trials in Benin, Congo Brazzaville, Guinea Bissau, Guinea,

Liberia and Uganda.

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.

MTN Mobile Money is a SIM-based version of Fundamo’s Mobile

Wallet Solution version 3.1.




Secured through PIN

Cost for usage Free during the pilot, commercial fees not yet disclosed

Partners MNO:MTN; Bank: Standard Bank Uganda, Technology: Fundamo

Additional

information

MTN Uganda Mobile Money users are allowed to transfer amounts

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.


Bank a billion

www. bankabillion.org - World

Short description Bank a billion is an initiative by Grameen and Obopay to serve a

billion unbanked people by 2018.

By 2018 the world’s poor will benefit fully from mobile banking

services because everyone with a mobile phone will have access

to affordable financial services that empower their life and work.

This includes access to savings, money transfer, payments and

micro-credit.



Domain M-Banking

Secured through Not decided yet


Partners Grameen Bank, Obopay

Additional

information

At the confluence of the un-banked and mobile phone lies an

unprecedented opportunity to overcome one of the most crucial

issues we face today.

Using mobile technology to deliver mobile microcredit services

overcomes previously limiting restrictions of space and time by

using existing infrastructure to give even the most impoverished

to access financial services.

The potential for immediate and broad global impact on the

problem of financial exclusion is vast.

Annexes

Annex I: Glossary

3GPP

The third generation partnership project (3GPP) is a collaboration of groups of

telecommunications associations, to make a globally applicable third generation mobile

phone system specification within the scope of the International Telecommunication Union.

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

An Automated Teller Machine (ATM) is a computerized telecommunications device that

provides the customers of a financial institution with access to financial transactions in a

public space without the need for a human clerk or bank teller.

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

CDMA2000 is a hybrid 2.5G / 3G technology of mobile telecommunications standards that

use CDMA, a multiple access scheme for digital radio, to send voice, data, and signalling

data (such as a dialled telephone number) between mobile phones and cell sites.

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

Context or Transaction Context

The context or transaction context is the total of situational circumstances in which each of

the three processes of the transaction – agreement, 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

ETSI is short for European Telecommunications Standards Institute. ETSI is an independent

non-for-profit standardisation organisation of the telecommunications industry – equipment

makers and network operators – in Europe, with worldwide projection. ETSI has produced

standardizing the GSM cell phone system and the Tetra professional mobile radio system.

European Central Bank

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.


European Payments Council

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

An innovation is a good, service or idea that is perceived to be new by its adopters

Long Hauls

A long haul is an innovation which differs significantly from its precursor. Also the way

consumers should use the innovation is different from the way consumers had to use its

precursor.


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.

Mobile originated SMS billing

Payment method via SMS where the intended payee originates the payment by sending an

SMS

Mobile payment

A payment where the mobile phone is involved in the initiation and/or confirmation of the

payment. The payer may or may not be ‘mobile’ or ‘on the move’.

Mobile terminated SMS billing

Payment method via SMS where the intended payee closes the payment by receiving one or

more SMS messages.

Modular architecture

Refers to a design of any system composed of separate components than can be connected

together.

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

Near Field Communication (NFC) is a short-range high frequency wireless communication

technology which enables the exchange of data between devices over about a ten

centimetre (or four inches) distance. The technology is a simple extension of the ISO 14443

proximity-card standard that combines the interface of a smartcard and a reader into a

single device.


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.


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

Standardisation is the process of developing and agreeing upon technical standards. A

standard is a document that establishes uniform engineering or technical specifications,

criteria, methods, processes or practices.

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 Services Manager

Trusted third party who securely distributes and manages the service providers services to

the mobile network operator customer base


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

Unstructured Supplementary Service Data (USSD) is a capability of all GSM phones. It is

generally associated with real-time or instant messaging type phone services. There is no

store-and-forward capability that is typical of ‘normal’ short messages. Response times for

interactive USSD based services are generally quicker than those used for SMS.

Annex II: References

References

BBC (2008)

http://news.bbc.co.uk/2/hi/uk_news/1966247.stm

Betty Collis (1993)

Betty Collis (1993), University of Twente, the Netherlands.

Computer Fraud & Security (2007)

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

Gerhard Hancke (2007)

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

Harvard Business Review (2006)

Eager Sellers and Stony Buyers, Understanding the Psychology of New Product Adoption, J.

T. Gourville. Harvard Business Review - June 2006

Journal of Payment Strategy & Systems (2007)

Understanding buyer and seller behaviour for improved payment product development, C.

Liezenberg, D. Lycklama, H. Smorenberg, Journal of Payment Strategy & Systems - April

2007


Juniper Research (2008)

Juniper research: Mobile Payments: Strategies & Markets 2007-2011

Heiko Knospe (2006)

Secure M-commerce Scarlet Schwiderski – Grosche, Heiko Knospe, Information Security

Group, University of London, UK - 2006

Mobey Forum

www.mobeyforum.org

Mobile Payments Update (The Paypers)

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/

Mobile Monday (2002)

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

Payments News (2007)

http://www.paymentsnews.com/2007/04/abi_research_sc.html

Technology Review (2008)

http://www.technologyreview.com/Infotech/17355/page2/

ZDnetasia.com (2007)

http://www.zdnetasia.com/news/communications/0,39044192,62031790,00.htm

General Internet resources

For news on the mobile payments industry we can recommend the following websites:

For news, feeds and research on the telecom industry:

www.telecompaper.com

For news and research on the payments industry:

199 - Annex II: References

www.thepaypers.com

www.finextra.com

www.paymentsnews.com

For more information on NFC:

www.contactlessnews.com

www.nfc-forum.org

www.nfc-research.at

Annex III: About the editors and publishers

Chiel Liezenberg

Chiel Liezenberg is a founding partner of Innopay, an independent full service consulting

firm specialised in payments and transactional services. Chiel is one of the thought leaders

in online and mobile payments, e-invoicing and e-identity, shaping breakthrough business

and market innovations, schemes and standards.

Chiel holds an MA in Mechanical Engineering and Industrial Organisation from Delft

University of Technology.

Ed Achterberg

Ed Achterberg founded Telecompaper in 2000. As senior research analyst he has detailed

knowledge about the Benelux telecommunications industry.

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).

For more information visit www.innopay.com or contact Chiel Liezenberg at

[email protected] or +31 20 6580651.

About Telecompaper

Telecompaper has kept telecommunications professionals up-to-date since 2000. The

company employs fifteen editors and analysts at its headquarters in The Netherlands, and

also employs correspondents in various countries who track their local telecom markets.

Telecompaper provides international customers with research, company updates, support

and advisory services.

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.

News feeds: Telecompaper actively tracks the global telecommunications industry.

Although we have a global focus, we also have local presence as our correspondents provide

us with news from their local market. We can develop a bespoke news feed or corporate

intranet solution, but also offer several pre-defined feeds such as Asia Telecom Daily,

Western European Telecoms, and country-specific Feeds.

News access: Our News Access subscriptions allow you to log in and search our site for news

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

targeted at telecoms professionals. In addition to website access, we also provide weekly

Digests on various topics and regions.

For more information visit www.telecompaper.com or contact Ed Achterberg at

[email protected] or +31 30 6349600.

mobile payments 2010

Documents