The three largest mobile operators in the UK – Everything Everywhere, Telefonica-owned O2 and Vodafone UK – are to form a mobile payments joint venture. In a joint statement today, the three operators said they would work towards “a single ecosystem for m-commerce helping advertisers, retailers and banks to reach consumers through their mobile phones.” The JV aims to enable consumers to replace their physical wallet with “a new secure, SIM-based wallet,” which will work regardless of the device (as long it is NFC-enabled) or network. This will mean consumers can use the device to pay for goods, services and travel using contactless technology (NFC) with one touch of their phone, or online via mobile or PC. The JV – which doesn’t yet appear to have an official name – is subject to competition clearance and is aiming to launch before the end of the year, the operators said.

The three operators talked up the inclusive nature of the JV, claiming it would be “open and available to all industry participants” – though the UK’s smallest operator – 3 UK – is not currently involved in the project. They added that companies involved in sectors such as credit, debit and loyalty card issuing, and transport ticketing, will be able to create secure mobile versions of their products. Merchants signing up to the scheme will also be able to target consumers with “relevant offers and coupons” sent directly to their phones.
 
“We are seeing an explosion in the m-commerce market,” said Telefonica UK CEO Ronan Dunne. “Mobile advertising spend alone has more than doubled in two years as consumers embrace marketing on their handsets because it is now relevant to them and provides a great customer experience.”
 
“The mobile marketing and payments market is extremely fragmented,” he continued. “By creating this new business we will underpin this nascent market, providing real size and scale, allowing consumers to benefit from new and innovative services, like the mobile wallet, and giving them more of the things they value, through offers and deals that are truly relevant to them. At the same time business customers will reach a vastly increased audience, utilising a single platform for sales, delivery and payment.”