download press release

Orange and Telefonica join mobile payment platform initiated by Vodafone and T-Mobile

M-Commerce Gains Momentum as Industry Comes Together to Develop Common Payment platform
July 29, 2002, Bonn, London  

The commercial reality of mass-market mobile commerce moved a step closer today with the announcement that Orange and Telefonica are joining the mobile payment platform initiated by Vodafone Group Plc and T-Mobile in March this year. The signing of this agreement adds significant weight to the platform that now encompasses the world's biggest mobile telecommunications players with a combined subscriber base of over 200 million potential consumers. 

The integrated payment platform will deliver a secure and easy-to-use payment solution for the purchase of goods and services via a mobile device. Wireless customers simply store their personal details and preferred payment options in a secure virtual wallet. When making payments via their mobile device, they select which payment method they wish to use to complete the purchase - similar to undertaking a transaction from a conventional wallet.

Multiple payment options will be available including traditional credit and debit cards, making transactions possible with any participating merchant in the scheme. It will also be possible, as part of this scheme, that smaller purchases will be billed direct either to the customer's bill, by pre-paid top-up card or using other micro payment mechanisms. 

Orange & Telefonica quote
" The need for a common user experience is a must for the mass-market acceptance of mobile payments," said Nikesh Arora, Executive Board Member, New Business and Global Products, T-Mobile. " Buying items through a mobile device should be a process that users understand, trust and can easily adopt. These are the key criteria for the m-payment initiative."  

Vodafone quote
The payment platform is being developed in partnership with Encorus Technologies, owned by eONE Global and is scheduled for deployment in Q4 this year. Initial roll-out of the platform will be in Germany and the UK. Future administration and development of the scheme will be handled by an independent entity sponsored by all involved networks. 

Analysts estimate that transactions using mobile devices will make-up approx 27% of online purchases by 2005 . The Wireless World Forum expects the value of mobile payments in top mobile markets — US, Japan, UK, and Germany - to reach €55 billion by 2006 with 200 million regular mobile shoppers

Key issues surrounding the acceptance of mobile commerce have addressed the lack of industry standards and the need for a secure platform to both process transactions and store consumer information. The joining of the operators positions the scheme to effectively deal with these concerns as one common solution is rolled out with backing from the major mobile players in the market. 

Orange quote
Telefonica quote
The payment platform is currently in final development with first stage deployment in Q4 this year. Initial roll out of the platform, with the larger operators, will be in Germany and the UK with additional interoperability extended to other operators in the months following.

Actions for this page

Font size: