Flashback: The War Against Cash - Payments Networks and Telecomm Operators Form Joint Venture for Mobile Payments

Everything Everywhere and Barclaycard to Launch UK’s First Contactless Mobile Payments

January 27, 2011

Mobile Today - Everything Everywhere and Barclaycard have partnered for the UK’s first contactless payment solution launch – allowing consumers to pay for products using a mobile phone.

The solution, due to launch this summer, will be first available on Orange-enabled handsets and will then roll out to its joint venture partner T-Mobile.

Barclaycard and Orange announced their strategic partnership to bring contactless mobile payments to market in 2009. The latest move ‘will be the biggest revolution in payments since credit cards were introduced in the UK by Barclaycard over 40 years ago’, the pair said today (27 January).

The two companies will work with handset manufacturers to enable customers to use their mobiles to pay for goods and services at more than 40,000 retailers by waving their phone against a contactless reader using near field communication (NFC) technology. Nokia’s C7 handset, the Google Nexus S and Apple’s iPhone 5 [due to launch this summer) feature the technology.

The launch proposition will focus on an industry-backed, Sim-based approach to payments with enhanced security for customers. Meanwhile, MasterCard will provide the payment capability for the contactless mobile transactions.

Contactless payments will feature as part of the wider Orange portfolio of products developed in conjunction with Barclaycard, which already features a contactless co-branded credit card as well as a forthcoming contactless Orange Cash prepaid payment card.

There are already 42,500 live Barclaycard contactless terminals in retail outlets including Pret A Manger, EAT, and Little Chef.

Everything Everywhere chief development officer Gerry McQuade said:

‘This is the beginning of a revolution in how we pay for things on the high street. It’s a cultural shift that is as important as the launch of the personal credit card or ATMs.

‘We’re making something that’s been talked about for many years a reality and, very soon, using your mobile to buy a sandwich, a cinema ticket or, in time, even something bigger like a computer will simply be the norm.

‘As Britain’s biggest communications company, we’re proud to be delivering this technical and cultural innovation to the UK through the Orange brand. Orange and Barclaycard customers will be the first to be able to use their mobiles to make payments on the high street wherever contactless payments are accepted. This is part of our wider strategy to re-define what people use their mobiles for, with mobile payments being the start.’

Barclaycard Consumer Europe CEO David Chan said:

‘Barclaycard is well known as a leader in helping consumers and businesses to make and take payments in their everyday lives. Finding new and better ways of doing this is what drives us, so it’s exciting, with Orange, to be giving consumers in the UK the choice to make contactless payments on their mobile phone as well as their card. Barclaycard is going to lead the innovation and explosive growth you’ll see in mobile payments.

‘I believe that future generations will find it surprising that early this century we were still carrying separate items to buy goods and to communicate with each other. As payment experts, our role is to make it easier, more convenient and incredibly secure for people to make purchases and manage their money while on the move.’

MasterCard and Telefonica Team Up for Major Latin America Mobile Payments Project

The payments network and multi-national mobile network operator are to form a joint venture which will develop mobile financial solutions in the twelve countries in Latin America covered by Telefónica's Movistar brand.

January 31, 2011

NearFieldCommunicationsWorld.com - MasterCard and Telefónica have announced the creation of a joint venture that aims to lead the development of mobile financial solutions in twelve Latin American countries served by Telefónica's Movistar brand.

The new company will be owned 50:50 by the payments network and the telecoms operator, will be managed independently and plans to "leverage banking relationships of both companies, Telefónica's telecommunications assets and MasterCard's payments expertise".

"The joint venture will have an open model to ensure interoperability among the banked and unbanked segments, and serve as a bridge between the financial and telecommunications sectors," say the two companies. "It will seek to provide 87 million current and potential Movistar customers with mobile payment services that will be linked to a mobile wallet or prepaid account including money transfers, mobile airtime reload, bill payment and retail purchases, among others. In addition, some of these services such as receiving remittances may also benefit 200 million Movistar and non-Movistar mobile subscribers in the 12 Latin America markets included in the joint venture."

"This initiative is a step toward achieving financial inclusion for the under-served in Latin America — positively impacting its economic development," the partners continue. "Aside from offering convenience and security, the range of mobile financial solutions to be offered will be the most complete to date and widely accessible to all, regardless of their access to banking services. Through this initiative, it is expected that acceptance of electronic payments will be expanded to enable what are today predominantly cash-based merchant locations and micro-businesses such as taxis, street vendors, among others, to accept mobile payments."

"This initiative puts us at the forefront of mobile payments in the region and arms us with the right artillery to strengthen our war on cash," says Richard Hartzell, president of MasterCard's Latin America and Caribbean region.

"By offering mobile financial solutions, we are fully responding to the demands of the population in Latin America that trusts in their mobile phone to conduct financial operations," explains Joaquin Mata, Telefónica's global head of financial services. "This joint venture places Telefónica in a solid position to lead the development of mobile financial solutions in Latin America."

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Read More...