Mobile Payments Update - The Paypers
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A fortnightly update on the mobile payments sector
Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
or whether the transaction is in a foreign funds availability policies). The first phase of
Contents currency. Alerts are triggered by the the mobile money transfer pilot programme
transaction as it passes through the Visa will enable domestic money transfers within
Feature Articles...........................................1 network, allowing consumers to view the US and will involve several Visa issuers,
Visa makes strong move into mobile notifications typically before they even leave including US Bank, and as many as 6,000
payments ..................................................... 1 the store. Offer and Locator will make it Visa account holders. Based on trial results, a
RFID security concerns and innovations ..... 2 possible for users to receive targeted offers second pilot phase is expected to extend the
Large m-banking initiatives taking off .......... 2 and show consumers nearby locations of programme to include cross-border
Standardisation bodies act as lobbyists....... 3 shops or ATMs that accepts Visa. These two transactions during the first half of 2009. The
News In Brief ...............................................3 functions can also be combined. Consumers service is powered by Visa’s mobile platform,
Europe ..........................................................3 would opt-in to the services, only activating a suite of technologies that enables Visa, its
those they choose and would be able to opt- clients, and mobile operators to engage in
Asia ...............................................................5
out at any time. Additionally, Visa is trial activities and develop commercially
North America ...............................................5 developing NFC contactless payment scalable mobile services.
World.............................................................6 capabilities for Android users. At present,
Android is available on the G1, a phone
Contactless payments
Company Index ...........................................8
Events ..........................................................8 produced by Taiwan-based HTC which is Together with Nokia, Visa plans to offer Visa
available on T-Mobile’s network. payment and payment-related services,
including contactless payments, remote
payments, money transfer, alerts and
notifications. The services would be available
Feature Articles on Nokia's next-generation handsets,
beginning with the NFC-enabled Nokia 6212
Classic, which is expected to be available
Visa makes strong move worldwide in October. The Visa applications
into mobile payments will first be made available for trial use to
interested financial institutions. Consumers in
In recent weeks, Visa appeared in the possession of the NFC-enabled Nokia 6212
news remarkably often announcing new Classic who have an account with a
activities in the area of mobile payments. participating Visa issuing bank will be able to
Visa’s new developments follow rival make mobile payments via their Visa
MasterCard’s launch this spring of a account, make mobile money transfers to
handset-based money-transfer service other individuals with Visa accounts, receive
with mobile payments services provider alerts related to Visa account transactions
Obopay. and also opt to receive offers and discounts
Visa announced new US mobile from merchants. Nokia and Visa first
developments for Google’s Android platform, The G1. Photo courtesy of HTC demonstrated NFC technology in December
services for Nokia next-generation handsets 2005 with the launch of the first large scale
such as the NFC-enabled Nokia 6212 Classic P2P payments via mobile web NFC trial in the United States at the Philips
phone, and also a person-to-person money browser Arena in Atlanta. The long-term collaboration
transfer payment pilot. In order to test handset-based P2P between Nokia and Visa has already resulted
payments, Visa and US Bank plan to launch in multiple trials of Visa mobile payments
Visa on Android
a mobile money transfer pilot programme by enabled through NFC technology on several
Visa’s mobile software powered by Google's the end of 2008. The service will allow continents. Pilots were conducted in United
Android platform, a mobile operating system registered Visa cardholders in the US to use States with Wells Fargo Bank, in Malaysia
Google launched a week ago, will be their mobile phones to send funds directly to with Maybank and Maxis, in Taiwan with
launched in the US by year-end and will other registered Visa cardholders. The pilot is Chinatrust Commercial Bank and Chunghwa
initially only be available for Visa cardholders the first US-based trial testing mobile money Telecom, and in London with Barclays Bank.
from Chase bank. However, the payments transfers between Visa accounts. Visa Visa’s announced mobile financial services
network expects more banks to sign on later. cardholders participating in this pilot will be with partners such as Google and Nokia
Visa will, at first, offer three services: Alerts, able to transfer money by using their mobile shows that the payments network is taking
Offers and Locator. With Alerts, Android browser to reach a secure website. The important steps in developing future mobile
users will be able to receive alerts about transferred funds will be credited directly to financial services. However, Visa said nothing
purchases via their mobile devices, based on the recipient's Visa account and the recipient about cooperation with wireless carriers
their preferences. The consumer will be able can then access the funds via a cash which control both device and software
to personalise the types of alerts delivered to withdrawal at an ATM or by making a availability. Visa appears to copy
their mobile device according to pre-selected purchase at any merchant that accepts Visa MasterCard’s P2P mobile money transfer
parameters, such as the size of transaction, products (subject to the recipient's bank's initiative, a move which made MasterCard
1 of 9
Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
believe that they are on the right track when it surveys also found that consumers are low power requirements, are CMOS
comes to the development handset-based worried about the security of mobile payment compatible and have a read range similar to
money transfer services. The fact that transactions and mobile banking applications. other tags. The company is currently seeking
powerful parties like MasterCard and Visa Verayo and Peratech’s announcements are venture funding and it is not known when
venture into mobile payments and apparently thus timely and welcome. commercial products will be launched.
believe in its future, makes it more likely that Security and authentication systems provider Clearly, RFID security is a subject that’s
mobile payments will get off in the future. The Verayo has launched what it calls ‘the world’s important to both consumers and the industry
immense financial resources these first unclonable chip’. The Vera X512H RFID and I have no doubt we will be seeing more
companies can wield and their actual chip is based on technology called Physical products and solutions in the field of RFID
willingness to do so may boost mobile Unclonable Functions (PUF). PUF technology and NFC security this year.
payments adoption and confidence in mobile is a type of electronic DNA or fingerprinting
payments solutions. technology for silicon chips that makes each
chip unclonable, the company says. This is Large m-banking initiatives
RFID security concerns and
an ISO 14443-A compatible chip, and in taking off
addition to PUF technology it includes a 64 bit
innovations unique tag ID and 512 bit one time As mobile banking has been identified by
programmable memory. Verayo is targeting many as a way to bring services to
Over the past months a number of media unbanked in emerging economies, the
various industries with this anti-counterfeiting
reports have been published with World Bank, NGOs and several companies
solution, including luxury brand goods,
unveiling security problems in RFID chips, have announced projects to bring mobile
pharmaceuticals, secure IDs and access
often featuring hackers decrypting or banking to the poorer regions across the
cards.
cloning RFID tags. Two companies have globe. Most recently, the Inter-American
this month announced innovations Peratech, a technology company based in the
Development Bank also said it will
addressing these concerns. US-based UK, has developed switches that are made
support the development and
Verayo is touting an unclonable RFID chip from ultra-thin pressure sensitive material
implementation of mobile-banking
and Peratech from the UK has announced which can be embedded in RFID chips,
systems for unbanked people in Latin
a switch that can temporarily turn-off an among other things. The solution is based on
America.
RFID chip so that information is not the company’s Quantum Tunnelling
Composites (QTCs) material and allows, for In April, the World Bank announced it would
always being ‘broadcast’.
example, RFID chips to be read only if the fund a national m-banking project in the
Privacy and fraud concerns related to NFC Maldives. This project seeks to create a
user is pressing on the switch. The switches
and RFID applications seem to be a hot issue national, interoperable payments platform
thin enough for them to be laminated inside
at the moment as evidenced by the number that allows users access to any bank account
RFID tags. This solution could ease concerns
of news items and initiatives related to RFID through their mobile phone and cashing
of identity theft and ‘leaking’ of information or
security. Initiatives such as the he US Federal through any agent. The project is a world first
payment details.
Trade Commission, which is currently and is undertaken at the request of the
seeking comments on RFID privacy and data In addition to these recent announcements,
Maldivian government.
security for an upcoming workshop at end- there are several other companies working on
RFID security solutions as well. Start-up Additionally, the global microfinance resource
October to discuss consumer concerns. Also,
Veratag, for example, is currently working on centre CGAP this month made a new four
last month the RFID Security Alliance was
RFID security technology but has not year commitment to identify, fund, research
founded as a new resource for the industry,
commercially launched products as yet. and champion technology enabled banking
aiming to drive market education and
Veratag’s solution is based on Micro-Electro- services for 25 million people in 20 countries
discussion about security and privacy issues
Mechanical Systems (MEMS) which can be by 2012. The commitment builds on more
surrounding the use of RFID technologies.
placed on RFID chips, making them than five years of work on mobile banking
Furthermore, on 26 September, the Canadian
unclonable, Veratag says. The company calls and microfinance by the organisation. In that
Information and Privacy Commission
the devices MEMflakes and claims they have time CGAP has advised and shaped projects
published a white paper on privacy that also
short read times, are cost effective, simple, with a dozen providers in Asia, Africa and
looks at RFID applications and their security
invulnerable to conventional attacks, have Latin America and conducted in-depth policy
issues. Over the past few months several
assessments in 10 countries.
Most recently, on 22 September, the Inter-
American Development Bank (IDB) issued its
call for proposals under the Bank’s “m-
Banking for the unbanked” programme. The
programme is implemented in cooperation
with the GSM Association. The programme
will provide to qualified teams of Mobile
Network Operators (MNO) and partner banks
financial and technical support for the
development and implementation of a m-
banking solution on a pilot or trial basis to
verify the operational and financial viability of
How PUF works. Image by Verayo. a solution, or to support a full-scale launch.
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Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
The selected projects will receive finance of probably get the answer: ‘a lack of
up to 50 percent of the overall calculated standardisation’ or ‘different stakeholders News In Brief
costs, with a maximum amount granted per pursue different solutions’. Standardisation
program of USD 150,000. The IDB plans to bodies were established to overcome this Europe
support at least five projects. Applications are deadlock. The goal of these standardisation
open to companies and institutions from IDB bodies: come up with a solution that works for Sevenval deploys mobile banking
member countries in Latin America and the all stakeholders, the most important being the
portal for Netbank
Caribbean. MNOs, the financial institutions and the
Germany - German mobile applications
However, not only the World Bank, IDB and mobile phone manufacturers.
developer Sevenval has deployed a mobile
NGOs are looking into bringing m-banking to The critical element in this matter is ‘the banking portal for German internet bank
the unbanked. This year, money transfer secure element’ which securely stores all Netbank. The portal is based on Sevenval
services provider Obopay and Grameen payment related information. Whoever has Mobile Platform and offers a simple interface
Solutions announced their ‘Bank A Billion’ control over the secure element, calls the plus secure online banking features for all
initiative. The initiative aims to use mobile shots in the whole mobile payment process, mobile devices, while other European banks
technology to deliver banking services to a and hence reaps the most benefits from are currently using the platform as well for
billion of the world’s poorest people by 2018. mobile payments. So it does not come as a their mobile banking portal.
The initiative will provide access to affordable surprise then, that the three most important
financial services, including cross-border stakeholders on the supply side – we leave Macalla powers tsb's mobile
remittances, money transfer, payments, the demand side out of the equation, since banking service
savings and credit accounts. merchants and consumers only want cheap Ireland - Irish home loans provider and life
It seems that more and more companies and and secure payment and don’t care who insurance company Permanent Tsb has
organisations realise not only that m-banking controls the secure element as long as these picked Macalla's platform to launch a mobile
provides a real opportunity to people in two conditions are met – want to control the banking service. To register for the Text
poorer nations, but also that cooperation in secure element. Financial institutions want Banking service, users should access
this field is important. It will be interesting to the secure element on a Universal Integrated Permanent tsb's Open24 service, supply their
see what the results will be of the national m- Circuit Card (UICC or SIM) which only they mobile phone number and provider, whether
banking platform in the Maldives, the new control, MNOs want to let space on the SIM the account is pre- or post-paid and nominate
projects in Latin America and the Bank A they control, and mobile phone their default permanent tsb account. Then
Billion initiative. No doubt, these projects will manufacturers want the secure element to be they will receive a 5-digit security access
provide learnings for financial institutions and an integral part of the mobile phone. code by SMS. Customers will use this code to
mobile operators in developed countries as Standardisation bodies thus have the confirm any future transactions. Tsb Text
well. daunting task to align these (and other) Banking users can request a balance enquiry
stakeholders and come up with universal or a mini statement, transfer funds between
standards. At least, that should be their task. own permanent tsb accounts, pay utility bills,
Standardisation bodies act The MNOs have put forward the GSMA as a
make mobile top-ups, receive text alerts if a
as lobbyists lodgement of EUR 1,500 or more has been
standardisation body to defend their interests.
made or if a withdrawal of a minimum EUR
Similarly, the financial institutions have the
With Mobey Forum’s recent research adds 1,000 has been made.
Mobey Forum, which defends the interests of
another voice to the discussion about who
the financial institutions and proposes
will control the secure element. Several Mobiqa, Mticket offer m-tickets at
standards that favour banks.
standardisation bodies are pursuing their Masters Madrid
own solution, lobbying hard with little The phone manufacturers have the NFC Spain - UK provider of mobile ticketing
headway towards a global standard being Forum, which proposes NFC standards that, technology Mobiqa has teamed up with
made. predictably, champion the solution that Mticket, Mobiqa's exclusive partner for Spain,
integrates the secure element in the mobile to offer tennis fans the opportunity to enter
Mobey Forum recently presented interesting
telephone. To complicate things further, the Madrid Masters using mobi-tickets on
research which examines business models
independent standardisation bodies like ETSI their mobile phones. Mobile tickets are
for sharing the security resources of a mobile
and ISO as well as EMVCo also have their available online at mutuamad-
phone’s SIM. Mobey Forum is an industry
say in the discussion. mastersmadrid.com. A mobi-ticket contains a
forum dominated by financial institutions. Not
surprisingly, the solutions they investigate are As long as standardisation bodies only unique barcode and information about the
all aimed ‘to provide direct links between function as an extension of the stakeholders match and is redeemed at the venue by
banks and their customers – irrespective of they represent, they don’t have any added scanning the mobile phone display with a
the mobile networks users subscribe to’. In value over stakeholders quarrelling between standard scanner. The mobi-ticket can also
other words: the banks should have the themselves over who is to control the secure be used as coupon or voucher for food.
immediate contact with the consumer element.
regarding mobile payments, dis- Financial institutions, Visa,
intermediating the Mobile Network Operator Swisscom trial NFC payments
(MNO). Switzerland - Swiss financial institutions
Credit Suisse, PostFinance, Swisscard,
Ask an expert what he or she thinks is the
partner with Swiss payment providers
most pressing issue that prevents mobile
Swisscard, Telekur Multipay, Visa Europe
payments from really hitting off, and you’ll
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Vol. 2, Week 40, 18 September - 02 October 2008
and Swisscom to trial contactless payments UK Data Select launches mobile- Other UK banks such as Barclays, Abbey
with mobile phones and credit cards, reports based security service and Alliance & Leicester are also offering
Netzwoche Ticker. The Visa payWave trial United Kingdom - UK Mobile Managed paid SMS services. But other institutions,
uses NFC technology to transfer payments Services, a division of UK distributor of such as Royal Bank of Scotland, offer text
between credit cards, mobile phones and mobile phones Data Select, has launched message alerts for free and have no plans to
cash registers. The payments will be charged Accode, a security service that uses the start charging users in the near future.
like normal credit card payments. The trial mobile phone to protect companies' corporate According to independent research carried
runs between September and November of networks or portals. The service was built in out by Lloyds TSB with 2,000 adult mobile
this year, enabling 150 employees of the partnership with mobile money services users, 60 percent would like a facility to keep
participating companies to pay with an NFC- provider Monitise and it is based on the same tabs on their money, while 52 percent would
enabled mobile phone in restaurants around technology used in Monitise's mobile banking like to be able to move funds between
Switzerland. service, Monilink, offering SMEs and accounts and 36 per cent believe that mobile
enterprises the same level of security that banking would help them manage their
Ukash vouchers bought via m- has been adopted by the UK's banks. The finances more efficiently. Nonetheless, UK
payments double service works by using a security application mobile users are the most reluctant to use
United Kingdom - UK online cash payment on customers' mobile phones to create a one their device to bank online, according to
provider Ukash reveals that the number of time passcode (OTP), which is then entered research from Unisys.
vouchers bought via mobile phones have into users existing VPN clients on their
doubled every month in the last year. The laptops in place of their existing password. Asus strikes m-commerce deal
company also announced that one in five Each passcode is only used once, removing with 2Shop4
Ukash vouchers are now purchased with a the threat presented by malicious 'phishing' or United Kingdom - Asus has signed a text &
mobile phone. Ukash launched UkashMobile Trojan attacks. The service can be set-up shop partnership agreement with m-
vouchers in December 2007, allowing over the air and does not require employees commerce venture 2Shop4. 2Shop4 currently
customers with a bank account and an to carry another piece of hardware whenever enables users to buy goods via a SMS while
internet enabled mobile phone to get they need to connect to their company on the move. Scheduled for launch in
vouchers anytime using their mobile. Mobile network. The service is also fully managed by November, the new m-commerce
phone users can access the Ukash Mobile Mobile Managed Services. development is expected to allow products to
web page to order an Ukash voucher. Users be sold directly through advertisements or
pay a GBP 1 surcharge to receive a GBP 10 UK Lloyds TSB offers expanded direct marketing. 2shop4 aims to enable
voucher directly to their mobile phone. The mobile banking service users to buy goods and services using their
value of the GBP 11 plus any operator costs United Kingdom - UK financial institution mobile phone, via 2shop4 'Buy-Now' adverts.
for accessing the internet is debited from the Lloyds TSB will offer a new mobile banking The 'Buy-Now' text system turns adverts,
user's mobile phone bill, regardless of package called Mobile Service starting from magazines, posters, digital, interactive
whether they are a contract or prepay mid-October. The service was developed medium into a direct sales tool via mobile
customer. At present, Ukash Mobile is only together with Monitise's mobile banking phone SIM&PIN. 2shop4 provides brand
available on the Vodafone network in the UK. service Monilink and sits on the banking owners with a 'Buy-Now' shopping mall, via
network of UK payments processor Vocalink. texting 'Brandwords'. The brand owner
Everyman Cinema Club launches With Mobile Service, Lloyds TSB customers selects their key 'Brandword/s' for SIM&PIN
mobile ticketing service will be able to monitor and manage their texting, while consumers can text the
United Kingdom - The UK's Everyman money using their mobile phones, receive Brandword/s and the goods or services are
Cinema Club has started offering a mobile SMS alerts about their finances and also purchased and delivered. Initially to be
ticketing service together with mobile ticketing move money instantly between Lloyds TSB launched in the UK, 2shop4's enterprise level
services provider Mobiqa and Vista accounts through a mobile banking software will be global by end-2009. The
Entertainment Solutions. The service was application. Customers will also be able to 2shop4 software is compatible with all mobile
launched at eight Everyman venues which view their account balances, check their last phone networks worldwide. 2shop4's 'Buy-
include Screen on Baker Street, Screen on six transactions and receive overdraft Now' text system has been developed by
The Hill, Screen on The Green, Screen at warnings via text alerts. On top of that, users Saatchi & Saatchi, and 2shop4 is in talks with
Oxted, Screen at Reigate, Screen at Walton- will be able to top up their mobile phone over 1,000 retailers and service providers to
on-Thames and Screen at Winchester. credit direct from their current account. deploy its software.
Everyman customers can buy mobi-tickets Mobile banking customers will need to
online at everymancinemaclub.com. Mobi- provide a six-digit pass code in order to view WISeKey develops m-payment
tickets are SMS text messages that contain a or move money between accounts. However, platform for Mediterranean region
unique barcode and information about the the bank does not intend to offer the Europe - E-security infrastructure provider
film time, screen and seating. Customers possibility of setting up direct debits or WISeKey will develop an m-payments
have to present their mobi-tickets at the making one-off payments via mobiles. Lloyds platform, initially targeting over 100 million
cinema where it is scanned by staff to allow TSB Premier and Private Banking Premier people in the Mediterranean region still
entry to the film. Mobi-tickets can also double account customers will receive the services unbanked but already connected via voice
as vouchers or coupons that enable for free, while other customers will pay a with their mobiles phones. WISeKey plans to
customers to purchase for food and drinks. monthly fee of EUR 3.14 (GBP 2.50). The provide the m-payments technology required
service is also offered for free to student to operate a Mobile Payment Telco Platform
account holders until October 2009. in selected geographical areas in partnership
with financial institutions, telecommunications
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Vol. 2, Week 40, 18 September - 02 October 2008
and technology companies in the region. In for extending this facility to customers. Banks service before the end of 2008. Through
addition, WISeKey will also participate in the must file Suspected Transaction Report Firethorn's mobile banking service, bank
launch of the 'I am Mediterranean' project, (STR) to the Financial Intelligence Unit – customers can check account balances, view
expected to create an online community of India (FID-IND) for mobile banking transaction details and transfer funds. On top
nearly 150 million citizens. The initiative is transactions. of that, users will be able to check their
expected to provide access to all citizens of account history and to make account balance
the region from the hub in Malaga to a wide inquiries through SMS. Future capabilities will
variety of citizen services aiming to promote North America include more advanced mobile transactions
the millennial common identity and culture. and mobile commerce. Firethorn's
RBC Royal Bank launches mobile collaboration with Fifth Third Processing
Solutions may also lead to Firethorn bringing
money transfer pilot
Asia Canada - German mobile payments services
traditional and non-traditional transactions to
Fifth Third's 20 million cardholders and
provider Paybox announced that its Money
Obopay India teams up with Tagit numerous other financial institutions through
Mobiliser mobile payment technology is being
the Jeanie Network, as well as through direct
for mobile banking tested by Canadian RBC Royal Bank, in its
connection to other debit and credit card
India - Mobile payments service provider RBC Mobex mobile payment service. The
networks.
Obopay India has entered into a strategic new service allows customers to send and
alliance with Singapore-based mobile receive money from their mobile phones.
ClairMail provides mobile banking
commerce company Tagit to create a Customers participating in the trial send a text
service to Citi Bank
common mobile banking infrastructure for message to RBC Mobex with the CAD
United States - Citi Bank community bank in
banks, telecom companies and other financial amount and the recipient's mobile phone
Texas has selected ClairMail to power its new
institutions. Tagit will integrate its MoBEIX number. Amounts of up to CAD 100 per day
mobile banking offering. ClairMail's mobile
transaction platform with Obopay's person-to can be sent to anyone with a mobile phone
banking and payments service delivers two-
person payment platform. Tagit will also serviced by any Canadian mobile carrier,
way mobile banking and payments
provide the necessary software development even if they do not have an RBC Mobex
functionality on all mobile phones across all
and support services for specific projects account. Recipients receive an SMS alert on
three user interface types, namely
requiring development of customised their mobile phone to notify them that money
messaging, mobile web and client
applications for Obopay's customers. has been sent to them. Still, recipients have
applications, known as the 'two-way triple
to register for the payment service in order to
Reserve Bank of India updates play'. The ClairMail System is certified to
access their funds. The RBC Mobex account
interface with Citi Banks' banking systems
mobile banking guidelines is a stored value account and enrolment is
and numerous other third-party core
India - The Reserve Bank of India has made through the RBC Mobex website,
processing and online banking systems. With
updated its 'Mobile Banking transactions in where users can load money to their RBC
ClairMail's two-way mobile banking and
India - Operative Guidelines for Banks'. Mobex accounts from any Canadian bank
payments services, Citi Bank customers can
According to the new guidelines, a per- account or from their credit card. For amounts
access account information and conduct
transaction limit of INR 2,500 (EUR 37.64 will of over CAD 25, senders receive a call on
transactions by using their mobile phone's
be imposed on all mobile banking their mobile phone to verify the transaction
existing messaging (SMS) software and
transactions subject to an overall cap of INR with a PIN. Participants will be able to
mobile web capabilities, regardless of the
5,000 per day, per customer. Banks may also remotely track and manage their RBC Mobex
device's manufacturer, model, operating
put in place monthly transaction limits account directly from their mobile phones or
system or wireless carrier. The ClairMail
depending on the bank's own risk perception through the RBC Mobex website to check
System also incorporates a powerful Event
of the customer. Only banks which have balances, view payment history and add
Engine which can process hundreds of
implemented core banking services will be funds. There are no additional fees to use the
thousands of transactions every minute from
permitted to provide mobile banking services, service, however users are subject to any
Citi Banks' back-end systems, including credit
the Financial Express reports from the regular bank or mobile carrier charges and
card and core processing, and enable
guidelines. Another requirement is that banks fees they might have in place. The trial will
customer-defined 2-way actionable alerts. Citi
need to be licensed and supervised in India run until January 2009.
Bank customers can subscribe to two-way
as well as have a physical presence in India.
Fifth Third Processing to resell alerts such as deposit confirmations,
The services will be restricted to customers of
withdrawal confirmations and overdraft alerts.
banks and holders of debit/credit cards Firethorn products
Alerts can also be sent when interest is paid
issued after RBI's present guidelines. RBI United States - US mobile commerce
to a checking account in Citi Bank's flagship
guidelines also require banks to install a services provider Firethorn Holdings, a
Reward Checking product.
system of document-based registration with subsidiary of Qualcomm, has signed an
mandatory physical presence of their agreement with Fifth Third Processing
Sprint features PayPal m-banking
customers, before launching a mobile Solutions to bring mobile banking services to
app
banking service. Only rupee-based domestic Fifth Third's 2,880 financial institutions. Under
United States - US mobile operator Sprint
services will be provided, while use of mobile the deal, Fifth Third Processing Solutions will
has launched online payment network
banking services for cross-border transfers is deploy Firethorn's mobile application to offer
PayPal's mobile payments application
strictly prohibited. Banks may also use the Firethorn's products to its processing financial
MyMoneyManager. The downloadable
services of Business Correspondents institutions clients. Fifth Third Processing
application is designed to enable Sprint
appointed in compliance with RBI guidelines, Solutions plans to commercially launch the
customers with Citibank, BB&T, IBC and PNC
5 of 9Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
Bank accounts to use their mobile phones to enjoys the cover for the next 24 hours. The phone bill. The system is already being used
conduct banking operations, including check cover is available to persons aged between by several Facebook application providers.
balances, pay bills, find nearby branches and 18 years and 80. "Consumers want products The system is a hosted payment application
ATMs, as well as send money to recipients that are available to them wherever they are. specifically for micro-payment on the internet.
worldwide. Additionally, Sprint plans to That is why we think it is innovative to use the Customers enter their mobile number in the
preload MyMoneyManager on phones and mobile phone to revolutionize how insurance application at the time they buy an application
include additional banks and other financial is sold in Kenya," said Virginiah Magondu, or widget, the Zong application then sends a
service providers. IBC is also offering a Kenya Orient's GM. Kenya Orient said it will PIN number to the customer's mobile phone
bilingual version of the mobile banking seek to market the product in rural areas which is then entered into the payment
application, with support for English and where it will compete with more formal application. The charge will then be billed on
Spanish. To use the application, Sprint products. the customer's mobile phone bill. Zong is a
customers should access the operator's division of Echovox, a multinational mobile
webpage for download instructions for New institute to explore how media solutions provider.
participating banks, after which they can world's poor use mobile banking
access their bank's website to register and World - The Bill & Melinda Gates Foundation FSTC completes first phase of
start the application download process. has donated USD 1.7 million to the University mobile payments project
MyMoneyManager is available free of charge of California Irvine (UCI) for the creation of a World - The Financial Services Technology
to Sprint data subscribers with a data pack or new research institute focused on the Consortium (FSTC) has completed the initial
bundled voice plan that includes data. growing use of mobile technology in providing phase of its Mobile Payments Technology
MyMoneyManager leverages mFoundry's banking and financial services to people in Project. The group is examining various
mobile financial platform which currently developing countries. The foundation will technology models supporting mobile
enables mobile banking, peer-to-peer provide funding for the institute through payments and expects to make
payments and brokerage. The platform is August 2011. The Institute for Money, recommendations that will facilitate an
also designed to enable Sprint to add new Technology and Financial Inclusion will interoperable mobile payments infrastructure
components to MyMoneyManager in the explore how the world's poorest people in the near future. Over 30 organisations
future, including stored value, international spend, store and save money. The institute including banks, technology providers,
remittances, NFC contactless payments, will study how these habits are affected by government agencies, clearing houses and
coupons and other mobile wallet services. the emerging mobile banking industry, which industry think tanks joined forces during the
could make financial services and the 4.5-month start-up phase. The first phase
security they provide available to millions of focused on researching, documenting and
World poor people for the first time. It also will fund organising current technology and evolving
research in developing countries, host capabilities in today's mobile payments
Yedioth deploys UpCode's mobile conferences and provide scholarships to arena. To accomplish this, a FSTC team
those who conduct such research. An archive divided itself into four functional work groups,
access, interaction platform
on the emerging mobile banking industry for namely the Network/Handsets Work Group,
Israel - UpCode and Israeli media company
use by researchers in the US and around the the Architecture Group, the Application Team
Yedioth Ahronoth have partnered on
world also is also being planned. UCI and the Security Work Group. Phase II of the
interactive media. Yedioth plans to engage
anthropologist Bill Maurer will serve as the initiative will be a four-month exercise
users through various services by scanning
institute's founding director. Although there is targeting security and architecture priorities,
Ycodes powered by UpCode with their mobile
increasing activity in the mobile banking while during a third phase the team will
phones on print. Users can view mobile
industry, there is surprisingly little known develop standards recommendations for
content on their devices, as well as access
about the impact of these new systems such transaction formats and security aimed at
various applications and services. Apart from
as Safaricom Kenya's service, which provides supporting interoperability and facilitating
hyperlinks in the codes, the service integrates
phone-to-phone fund transfers via text adoption. The FSTC is working closely with
advanced CRM and mobile payment tools.
message. This is especially true among poor official industry standards bodies including
Orient pioneers mobile insurance people and the so-called 'last billion' who are participation of overlapping team members
hardest to reach because they live in remote working on both the FSTC project and mobile
sales
areas. The Institute for Money, Technology payments standards committees. The project
Kenya - A mobile phone-enabled personal
and Financial Inclusion will be housed in series is expected to continue into 2009 and
accident insurance cover for death and
UCI's School of Social Sciences where the final phase is targeted to complete in the
permanent disability has been launched. The
Maurer chairs the anthropology department. third quarter with recommendations submitted
24-hour cover for KES 100,000 is activated
He is widely known for his research on the to the 18-month ANSI initiative for setting
through SMS for KES 30 a day. The
anthropology of money, finance, law and standards around mobile payments.
promoter, Kenya Orient Insurance Company,
property. The institute was officially launched
hopes the product will attract interest from
on 19 September. Over 100 mln mobile users to
tourists and locals going on long-distance
transfer money abroad by 2013
trips. People engaged in outdoor ventures
Zong launches hosted micro- World - Over 100 million users globally will
like mountain climbing, mining and
payments system use their mobile phones for international
construction are also expected to find the
World - US-based start-up Zong has money transfers by 2013, according to a new
product relevant. The premium is paid
launched its mobile payments system study by Juniper Research. Currently in an
through an SMS. Once the company certifies
allowing application developers and web incipient phase, these cross-border mobile
the recipient of the payment, the beneficiary
publishers to bill customers via their mobile money transfers are expected to upsurge
6 of 9Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
over the next two to three years, especially these companies are creating a platform and Contactless Payments Council
on migration routes such as global network for integrated prepaid and expands to include m-payments
Philippines/Middle East and Mexico/US. The mobile payments products. MPower's World - The Smart Card Alliance's
report also predicts that mobile international products will bring underserved consumers Contactless Payments Council will expand its
transfers will increase in frequency as users around the world a broad range of financial focus to include NFC and mobile payments.
become more accustomed to the process, services, including the ability to deposit and The extended entity will be called the
exceeding one per month by 2013 on withdraw funds, transfer funds, make Contactless and Mobile Payments Council.
average globally. The opportunity for national purchases and accept payments. According The Council aims to provide contactless and
and international money transfer services to MPower, 2 billion consumers worldwide mobile payment educational resources that
providers is estimated to exceed USD 5 lack access to basic financial services, will be most beneficial to the industry.
billion by 2013. The same study forecasts including nearly 50 percent of citizens in new Upcoming merchant projects include an ROI
that the top three regions, namely Western EU member states, 70 percent of the model and profiles on retailers accepting
Europe, North America and Africa & Middle population in Mexico and places like contactless payments. The Contactless and
East, will account for more than 75 percent of Tanzania where bank account ownership Mobile Payments Council comprises over 120
the global international mobile money transfer rates are as low as 5 percent. In a related members from 48 organizations, including
gross transaction value by 2013. announcement this week, MPower Ventures card issuers, payment brands, merchants,
fulfilled its 2007 commitment to CGI with the financial payment processors, terminal
MobiHand powers CrackBerry on- launch of the Empowerment Lab at the vendors, card manufacturers, chip vendors,
device BlackBerry app store Center for International Development at systems integrators/consultants and
World - Internet community for BlackBerry Harvard. The Empowerment Lab supports personalisation bureaus. New officers and a
enthusiasts CrackBerry has partnered e- research between academics and the private steering committee were elected in July,
commerce software provider MobiHand to sector to accelerate the creation of innovative including Deborah Baxley, IBM (chair), John
launch an enhanced on-device app store for services for extending financial markets to the Suchanec, Bank of America (Vice chair), and
BlackBerry smartphone users. The on-device global poor. The Clinton Global Initiative Mohammad Khan, Vivotech (secretary).
store enables users to access thousands of (CGI) convenes global leaders to devise and
applications compatible with their specific implement innovative services to some of the
phone by best-sellers, new, updated, free and world's most pressing challenges.
discounted categories. The store will
integrate with BlackBerry Wallet to ease Cellpoint enhances mPoint
purchases. Once they register, users can enterprise m-payment system
purchase applications and have them World - Mobile services provider Cellpoint
delivered over-the-air within seconds. Mobile has added advanced features to its
Additionally, to mark the launch of the new enterprise mobile payment system targeting
store, CrackBerry.com and MobiHand have enterprises who plan to launch mobile
rolled out their largest MobileHeist event up payment services. The added features
to now, offering 25 top-selling BlackBerry include a one-click mobile phone pay and a
applications for USD 9.95, with discounts of premium SMS auto analysis and settlement
up to 70 percent. The MobileHeist will be tool to improve m-commerce and mobile
available at the on-device CrackBerry App payment use. The upgraded mPoint payment
Store until 29 September. MobiHand further system now features one-click stored credit
plans to launch similar co-branded on-device card transactions and automatic transaction
AppStores for other smartphone platforms analysis and settlement system, a tool for use
including Android, Symbian, Palm and with micro payment services based on
Windows Mobile. Premium SMS. It can also handle payments
via credit-based, coupon-based and loyalty
MPower extends support for point-based transactions. Cellpoint Mobile's
Clinton Global Initiative one-click mobile phone pay is designed to
World - MPower Ventures, venture fund that enable companies to use stored credit card
invests in financial services companies details for quick mobile payment transactions.
targeting underserved markets, has made a Customers should text a keyword to a short
five-year commitment to the Clinton Global code, then enter their password to confirm
Initiative (CGI), to deliver financial services the purchase and process the sale. The
such as prepaid cards and mobile payments Premium SMS Analysis Tool is a built-in
to at least 5 million consumers worldwide. automated reporting and settlement
MPower Ventures plans to expand financial application designed to enable companies to
services markets to the underserved through use mobile payment as a fully integrated
investments in its global network of payment payment method. It also includes premium
companies for underserved markets, Rev SMS auditing and consolidation capabilities.
Worldwide, and its international mobile
payments company MPower Mobile.
Together with the incubator for MPower
Ventures' investment portfolio, MPower Labs,
7 of 9Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
Company Index
2shop4 ....................................................... 2 Mobile Managed Services ..........................1 Sevenval .................................................... 1
Asus ........................................................... 2 Mobiqa........................................................1 Sprint.......................................................... 3
Cellpoint ..................................................... 5 Monilink ..................................................1, 2 Swisscom................................................... 1
ClairMail ..................................................... 3 Monitise ......................................................1 Tagit ........................................................... 2
Data Select ................................................ 1 Mticket ........................................................1 Telco ...................................................... 2, 7
Facebook ................................................... 4 Obopay.......................................................2 Ukash......................................................... 1
Firethorn .................................................... 3 Palm ...........................................................4 Visa ............................................................ 1
IBM............................................................. 5 PayPal ........................................................3 Vodafone.................................................... 1
Macalla....................................................... 1 Qualcomm ..................................................3 Zong........................................................... 4
MobiHand .................................................. 4 Safaricom ...................................................4
Events
Next Generation Billing and IT & Banking Next generation payments 2008
Customer Management November 18, 2008 - Amsterdam - December 16, 2008 - Amsterdam -
November 5, 2008 - Amsterdam - Netherlands, Euroforum Netherlands, IIR
Netherlands, Jacob Fleming Conferences
Mobile & NFC Payment Strategies Near Field Communications World
Mobile Money Transfer 2008 November 24, 2008 - Budapest - Hungary, Europe 2009
November 10, 2008 - Dubai - United Arab IIR April 14, 2009 - London - United Kingdom,
Emirates, Clarion Events Ltd. Terrapinn
8 of 9Mobile Payments Update
Vol. 2, Week 40, 18 September - 02 October 2008
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