Mobile payment trials gain momentum

Mobile operators around the world are preparing to launch trials of contactless mobile payment services over the next few months. Forming part of the GSMA’s Pay-Buy-Mobile initiative, the 12 operators involved with the trials will provide consumers with handsets to securely purchase goods and services in shops, restaurants and train stations.

The Korean operator, KTF, has already set the pace by providing its executives with NFC-enabled handsets that have been used to buy items at stores in Korea, Taiwan and the US in a trial involving real transactions with the help of Mastercard.

This ambitious move comes just nine months after the GSMA launched its Pay-Buy-Mobile programme. “We’re seeing the first pioneering operators preparing for the rollout of commercial services that have the potential to become the foundation of a global, interoperable mobile payment service,” says Rob Conway, CEO of the GSMA. “This will enable transactions to be completed faster in many locations, and will make it easier for retailers to offer their buyers precisely targeted discounts and promotional offers.”

Market research conducted by Serrula on behalf of the GSMA indicates that both consumers and merchants see significant benefits from using their handsets as a method of payment. Two-thirds of the 2,500 consumers surveyed in 17 countries said they expected to be using their mobile phones to pay at point of sale within two years of such services becoming available, while 50 per cent of the retailers polled from 10 countries saw promotional opportunities from mobile payment services.

Another operator undergoing trials is Maxis in Malaysia. According to Nikolai Dobberstein, Head of Products and New Business at Maxis Communications, the Pay-Buy-Mobile trial is a significant milestone in the company’s overall strategy. “We are currently the only Malaysian operator participating, and have already deployed a number of payment services, including mobile international remittances.”