Banks and mobile operators join forces
Amsterdam, 9 September 2010 This week ABN AMRO, ING, KPN, Rabobank, T-Mobile and Vodafone signed a letter of intent to jointly introduce mobile payments at the checkout in the Netherlands. It is the first time that major banks and mobile operators in a European country have joined forces with regards to mobile payments. In recent months a study has been conducted which concludes that it is technically and commercially feasible to introduce mobile payments in the Netherland. The six companies plan to set up a joint venture to facilitate mobile payments which fosters the ease of use and, above all, safe mobile payments in the Netherlands.
Many different parties are involved in providing this type of mobile payment service. In terms of ease of use as well as safety it is essential to create a single uniform system for mobile transactions in the Netherlands, based on international standards. To bring this about, the six companies plan to set up a joint venture. By affiliating themselves to the system, all banks, mobile providers and other service providers will ultimately be able to provide their services by telephone.
Pay with your mobile phone at the checkout
It is expected that in 2012 it will be possible to pay easily and safely at the checkout with your mobile phone. Instead of paying with their bank card, customers will simply hold their mobile phone against the stores point-of-sale terminal and the payment will be made within seconds. The mobile phone communicates remotely over a distance of a couple of centimeters with the point-of-sale terminal on the counter. This contactless communication uses NFC (Near Field Communication) technology, the global standard for this type of application. The payment software itself is located in a secure part of the SIM-card in the users phone. No payment information is sent over the mobile network.
The mobile phone is now an integral part of everyday life and is used for more than just making calls or sending text messages. More and more people are making use of smart phones, which give access to a host of information, communication and entertainment services. Mobile transactions have long been regarded as the logical next step. As well as the potential to make in-store cash payments, other applications such as admission tickets, coupons and customer cards will soon be possible.