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 info@innopay.com.
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 info@innopay.com 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 Complex value chain with lack of co-operation
mobile operators, financial institutions and other Financial regulation
participants in the ecosystem
Security/risk (perception of security/risk)
User experience/easy to use
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.
80
70 Mobile Monday prediction Juniper prediction Juniper actuals 2003-2007

Market size in billion USD
60
50
40
30
20
10
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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 Mobile Mobile Mobile Mobile

order payment delivery authentication banking
Initiate a bill No No No No Yes

payment via mobile
banking environment
M-Banxafe (Belgium)
Transfer funds by No No No No Yes

submitting an
instruction to the
bank through a bank
provided mobile
banking environment
M-Banxafe (Belgium(
Payments at a No Yes No No No
physical point of sale
Paybox (Austria)
Purchase of a mobile Yes (can be Yes (if deducted Yes No No

ring tone mobile or from pre-paid
Jamster (United internet) amount or
Kingdom) billed by MNO)
m-parking Yes (start and Yes (amount is No No No
Mobillzahlen end) charged to the
Handyparken telco bill or
(Germany) deducted from

pre-paid
amount)
m-ticketing Yes (can also No (payment is Yes (e.g. 2D No No
Touch&Travel be via generally not by ticket or
(Germany) Internet or mobile) reservation

other means) code)
Example Mobile Mobile Mobile Mobile Mobile

order payment delivery authentication banking
m-top up Yes No, payment Yes No No
(many mobile takes place via (notification
operators) other means and balance

(cash/card) upgrade)
Vending No Yes (initiation No No No
Mobipay (Spain) and

confirmation)
Smart billboard/tags Yes Yes Yes No No
People’s Bank
(Georgia)
P2P remittance Yes Yes Yes No No
M-Pesa (Kenya) (confirmation) (notification

beneficiary)
Internet (or other No No (initiation No Yes No

channel) payment and
where the mobile confirmation of
phone is used as part the payment
of the are still online)
authentication
process
BankID (Norway)
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 Mobile payment applications that debit from a current account would be popular for this
tone 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 NFC based mobile payment solutions will find it a long and hard battle to break into this
a shop 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 Our analysis shows that direct debit from current account is the most suitable solution in
mobile phone 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 While cash is the current dominant solution in this context, an SMS based mobile solution
telephone 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.
60
Pre dicte d % of phones shipped in 2011 be ing NFC-e nabled
50
40
30
20
10
0
07-2006
10-2006
01-2007
04-2007
07-2007
10-2007
01-2008
04-2008
07-2008
10-2008
01-2009
04-2009
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 POS only Osaifu Keitai
of NFC enabled (Japan), Visa
phones PayWave
(Guatemala)
Technology Advantage Disadvantage Use Examples
SMS Available and Expensive, recipient Banking, Remittance Rabo SMS betalen
understandable to not always available (Netherlands),
every cell phone
user
USSD Available to every Not user friendly POS, Banking mPay (Poland),
cell phone user interface MobiPay (Spain)
Internet Connects to user Most phone users Banking, POS (if real
experience, worldwide are not time), Remittance
able to use it
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 Examples

commercially
available
Europe Mobile parking NFC Pilot Payter (Netherlands)
SMS Available Paybox (Austria)
Mobile ticketing NFC Pilot Mobile ticketing London
SMS Available Underground (UK),

Region Service Technology Pilot or Examples

commercially
available
Touch&Travel (Germany),
Beep (Netherlands), Paybox

(Austria)
Mobile POS NFC Pilot Rabo Mobiel (Netherlands),
SMS Available Paybox (Austria)
Mobile remittance SMS Available Luup (Gemany, Norway)
Mobile remittance SMS Available Mobipay (Spain)
North Mobile remittance SMS & Available Obopay (US)

America Web browser
Asia Mobile POS NFC Available NTT Docomo’s Osaifu-Keitai
Mobile ticketing NFC Available (Japan)
Mobile remittance SMS Available 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
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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.
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significant developments in cards and
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payments and e-invoicing industry, globally.
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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.
180
Europe North America
160
Number of mobile initiatives
Latin America Asia

140 Australia Af rica
120
100
80
60
40
20
0
03-2008
04-2008
05-2008
06-2008
07-2008
08-2008
09-2008
10-2008
11-2008
12-2008
01-2009
02-2009
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 SMS M-Payment
Mobile parking WAP/Internet M-Order
Mobile remittance NFC M-Banking
Mobile POS USSD M-Delivery
Voice 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 Netherlands - Rabo SMS betalen
Belgium – M-Banxafe Norway – Telenor
Belgium – Proximus M-Pay Norway - Mobile Axept
Belgium – Proximus SMS Poland - MPay Wallet
Belgium - Ping.Ping Portugal - MB Phone
Czech Republic - Czech Telefonica O2 Romania – ING – MasterCard trial
Estonia – Cinemon Cinemas Ticketing Romania - Good.bee
France - Disneyland Paris NRC trial Spain – Mobipay
France – Payez Mobile Spain - Banamex SMS Banking
France – TreiZen Spain - NFC Telefónica
France - Tag Pay Spain - Presto Park&Go
Germany – MobilZahlen Spain - Banco Popular Español
Germany – NetBank Swizerland - PostFinance SMS Banking
Germany – RMV mobile ticketing Swizerland - Epay24
Germany – StarMoney Handy UK – AvantixMetro
Germany - T-Mobile Streetgiggs UK – Mobile theatre ticketing service
Germany – Touch&Travel UK – Monilink
Germany - 12Pay UK – Payforit
Hungary – MobilFizetés UK – RingGo Mobile
Italy – PosteMobile UK – Trinity Mobile
Netherlands – Beep! Mobile Tickets UK - MoBank
Netherlands - Rabo Mobiel: mobile banking & NFC Europe – Atlas Interactive SMS billing
North America
Canada – Everyman Cinema Club Mobile Ticketing US – Mobiqa Venue Ticketing US – Mocapay
Canada – RBC Mobex US – Obopay
Canada – Zoompass US – Payment BuyVoice
US – America First Credit Union US – PayPal Mobile
US – Arvest Mobile Banking US – P2P Cash
US – BankCorp South, FirstBank, Region’s Finance, US – Synovus

SunTrust Bank US – Wachovia Mobile
US – Bank of America Bank the way you live US – Fargo Mobile
75 - Mobile payment services and pilots
US – Bank of Stockton US – m-Via US
US – Boku US – Commerce Bank mobile banking
US – Citibank Mobile Banking US – SizzleMoney
US – Eficash US – Zong
US – FirstBank’s Mobile Banking Service US – Eagle Eye Vouchering
US – Huntington Mobile Banking Service US – Chase Mobile
US – IBC Bank US –Zala
Latin America
Argentina – Atlas Interactive Mobile Billing Brazil – Oi Pago
Argentina – Banco Francès Mobile Banking Brazil - Samba 38
Argentina – Banco Galicia Mobile Banking Guatemala – Visa Pay Wave
Argentina – Banco Río Peru - Pago Movil
Brazil – M-Cash Venezuela - Diemo
Middle East and Asia
Afghanistan – M-Paisa Mongolia – XacBank Mobile Banking
Bahrain – Smart MTC Pakistan – Mobilink Genie
Bangladesh – SSL Wireless Philippines – G-Cash
Cambodia – Wing Money Philippines – Smart Money
China – EasiRemit Saudi Arabia – Smart Bank Service
China – UMPay Singapore – EZ-link
China – Ali M-Pay Singapore – SingTel
India – mChek Singapore – M1 Mobile Payments
India – Obopay India South Korea – BankOn
India – Oxicash SmsPay South Korea – K-Merce
India – State Bank of India Mobile Banking South Korea – Moneta
India – Pay Anyone South Korea – Tesco Visa Wave
India – Citi NFC trial Bangalore South Korea – KTF Ubitouch Mobile Banking
India – Citibank M-Banking India Taiwan – M-Ticketing Kaohsiung
India – PayMate India Thailand – Advanced Mpay
Japan – FeliCa Mobile Thailand – TMB Mobile Banking
Japan – KDDI au’s Osaifu Keitai Thailand – Kasikornbank Visa trial
Japan – Shinginko Turkey – Bankararasi Kart Merkezi

Japan – S!Felica Turkey – Turkcell
Kuwait – Viva M-Pay UAE – Dubai Bank Mobile Banking
Malaysia – DiGi Remit UAE – Du and Dubai First NFC trial
Malaysia – Mobile Visa Wave Payment UAE – Standard Chartered Mobile Banking
Malaysia – One Smart PayPass UAE – Mashreq Paymate Banking
Malaysia – Maxis FastTap
Australia
Australia – Mobile Queensland Australia – Telstra, NAB, Visa
Africa
Cameroon Mobile Money South Africa – POCit
Ghana - txtNpay South Africa – SWAP Mobile
Ivory Coast - Orange Money South Africa – Wizzit
Kenya – Eazy 24.7 South Africa - Cellphone Banking Absa
Kenya - Cooperative Bank of Kenya mobile banking Sudan Saraf Mobile
Kenya – M-PESA Zambia - CelPay
Kenya - Standard Chartered M-Banking Zimbabwe – Mukuru.com
Kenya - Zain M-Wallet Uganda - E-Fulusi Uganda
Sierra Leone - Mi-Pay Sierra Leone Uganda - MTN MobileMoney
South Africa – Cell Pay Point Worldwide – Bank-a-billion
South Africa – MTN Banking
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 Austrian mobile operators Mobilkom Austria and One are the
information 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 This service is accessible to anyone having a Bancontact/Mister

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

information 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 For SMS ticketing with the mobile phone, Proximus M-Pay needs
information 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 The mobile wallet displays the available bus tickets, the travel
information 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 Customers can go straight to the usher point in the cinema,

information 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 The Payez mobile service is started November 2007 and it

information 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 Each time the consumer makes a transaction, encrypted

information 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 The service is based on automatic withdrawals from bank

information 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 The service was launched in October 2008

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

information 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 Once they have signed a contract, customers get the StarMoney
information 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 In July 2007, Vodafone Germany selected Paybox as the processor

information 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 In September 2008, 30.000 clients were able to pay the parking
information 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 PosteMobile was launched in November 2007 and immediately

information 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 Beep! works together with organizations such as The

information 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 In the roadmap it is the banks vision also to use mobile phones for
information 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 The system is based on MiniTix, a system initially launched for

information 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 Still in pilot stages, DnB Nor and TeleNor both launch a separate
information 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 The program will focus on consumer and merchant experience

information 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 The company expects some 1.3 million banking transactions in

information 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 Mobipay is a model open to all mobile telephone operators and

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

information 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 In 2009, Banco Popular Espanol had more than 80,000 mobile
information 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 Launched July 2008

information
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 Monilink is UK's mobile banking network, providing banking

information 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 First announced in March 2006, the Payforit scheme has been
information 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 In April 2009, RingGo registered 7,000 transactions in Oxford

information 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 Trinity provides Mobile Ticketing services to other parties, like

information 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 Chance of success: only one phone, a few (big) banks, with
information 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 MO-Billing (MO = mobile originated) defines a billing process in

information 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 Service highly similar to Rabo SMS betalen. Money can be sent to
information 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 America First Credit Union has 432,000 members.

information
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

Logging into mobile banking requires a six-digit PIN.

Application downloadable via online banking account – after log-

in
Partners Firethorn and CheckFree
Additional Logging in requires a six-digit PIN.

information
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 Logging in requires a six-digit PIN.

information
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 With Mobile Banking from Bank of America, customers can use a
information 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 Available on the major US mobile network operators: Alltel,

information 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 Citi Mobile service requires a registration of a specific phone and

information 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 The service is based on a Firethorn application that utilises both

information 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 Huntington Bank has hit its annual mobile banking target in two
information 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.


in
Partners mFoundry
Additional The service was activated in July 2008.

information
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

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 The service was launched in late 2006

information
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 Obopay is a service that lets consumers and businesses purchase,

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

information 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 PayPal Mobile is available for person to person payments as well

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

information
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 The service was announced as early as November 2006.

information
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 The mobile banking application offers: viewing account balances

information 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 Testing the service started in April 2007.

information
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 The service is only available for customer who also participate in
information 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 SMS
technology
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 Zong claims the high fee (30 – 55% of transaction value) is justified
information 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 Zala positions itself as a turn-key modular, mobile financial

information 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 The service was launched in February 2007

information
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 The service was launched in 2006

information
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 The service was launched in 2006

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

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

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

information 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 The service was launched in August 2008

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

information 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 The initiative was announced in February 2007

information
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 The service was launched in August 2008.

information
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 The beneficiary also enjoys the convenience of having the money
information 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 The service ONLY works for China Mobile subscribers – over 450
information 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 The service started in July 2008.

information
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 Three wrong MPIN entries will block the MBS to the account for
information 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 The transaction limit is IRS 2,000 (EUR 30). Paymate plans to add
information 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 Osaifu-Keitai mobile phones equipped with FeliCa contactless IC

information 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 The aim is to reach 2.4 million account holders by the third year,
information 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 The service was launched in October 2007 with Citibank. With
information 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 Launched April 2006

information
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 The payment method was launched in February 2006 in Malaysia

information
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 The initiative was announced in July 2008, but has not been
information 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 Users can subscribe through Mobilink or through one of the

information 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 G-Cash was introduced by Globe Telecom in October 2004.

information
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 This launch of one of the largest public trials of such mobile
information 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 In February, Singapore’s government announced plans to create

information 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 In order to use BankOn mobile service, a financial chip should be

information 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 The Moneta card is a service that enables you to conveniently and
information 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 Banks have been issuing combined payment and contactless cards
information 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 KTF has plans to further increase use to global markets in

information 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 Launched in October 2005.

information
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 Advanced MPay is a 70:30 joint venture firm between the Thai
information 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

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 The trial is the second NFC trial in Turkey, but the first to aim at
information 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 In the trial, some 100 Turkcell and Garanti employees and
information 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 The service was launched on October 27 2008

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

information 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 The service was introduced in September 2007.

information
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 The proof of concept trial which consists of approx 250

information 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 Orange plans to roll out this service to other African countries,
information 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 Launched in September 2008. Equity Bank Kenya has 2.6 million
information 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 SMS
technology
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 M-PESA was launched in February, 2007 in Kenya by Vodafone's

information 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 The service started in July 2008.

information
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 MobileMoney is a transactional account, and its functionality

information 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 Only one account can be stored on one mobile phone. The use of
information 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 The company’s target for next year is to secure 10 percent of the
information 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 The new pan-Arab service is the first phase in a planned roll-out
information 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 The participating petrol stations vary from month to month, but
information 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 Monitise has recently been awarded USD 1.5 million representing
information 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 MTN Uganda Mobile Money users are allowed to transfer amounts
information 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 At the confluence of the un-banked and mobile phone lies an

information 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

chiel@innopay.com 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
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Digests on various topics and regions.
For more information visit www.telecompaper.com or contact Ed Achterberg at

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Mobile Payments 2010

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Mobile Payments 2010

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Mobile payments 2010

Market analysis and overview

Liisa Kanniainen, Executive Director of Mobey Forum.

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

Authors: Remco Boer, Tonnis de Boer (Innopay)

Copyright © Innopay BV and Telecompaper BV

All rights reserved

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

— Globalisation increasingly leads to a network economy.

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

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

— Development of successful transaction services requires thorough understanding of the

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

Some of our references cases include:

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

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

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

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

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

For more information visit www.innopay.com or contact us directly at info@innopay.com or

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

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

5.1 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