Mobile Payment Magazine

NewNet and Perceptive Development Demonstrate Secure Mobile Payment Solution

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The ubiquitous availability of mobile connectivity has spurred many ground-breaking applications and services. Mobile payment solutions are now fundamentally changing the way that payment transactions and services are being deployed. Many large credit card companies, payment acquirers and processing banks, mobile carriers, and a host of innovative new entrants are creating new ways to drive a number of easy to use solutions to the marketplace. A critical component to broad market acceptance and the successful proliferation of mobile commerce and transaction services is the promise to ensure secure access, confidentiality and privacy.

NewNet Communication Technologies and Perceptive Development, Inc., demonstrated an end-to-end secure mobile payment solution at the 2011 GSMA-Mobile World Congress in Barcelona.

NewNet’s secure access Traxcom products process over 1.5 billion transactions a month and provide secure connectivity that enables the delivery of legacy transaction payment services and brand new services such as mobile payments, e-banking, and e-commerce. Integrated, next generation encryption technology such as the Derived Unique Key Payment Transaction (DUKPT) ensures data confidentiality and safety, and enables carriers to expand current services and enter new markets such as healthcare.

The Perceptive Development FlexTransact portfolio of mobile payment products and software services for mobile solutions are available on a broad variety of smart phone platforms including Apple iPhone®, and Google Android. FlexTransact solutions provide a highly secure, easy to deploy and easy to use credit card payment client solution to meet the growing demand in the marketplace.

“The mobile payments market is growing rapidly and we are excited to host this demonstration of the AccessGuard Platform based, end-to-end solution together with client side product suppliers such as Perceptive Development to deliver the promise of secure, high performance broadband and mobile payment solutions,” said Prasad Kallur, NewNet’s Executive Vice President for Business Development.

“We are very excited to team with NewNet to demonstrate this end-to-end secure mobile payment solution,” said Jim Medeiros, CEO at Perceptive Development. “Our expertise in developing secure payment processing solutions, coupled with NewNet’s payment processing platforms, provides a wonderful opportunity for us to combine efforts. We look to continue to enhance and broaden our relationship with NewNet as this important market evolves.”

The Derived Unique Key Payment Transaction (DUKPT) data encryption enables mobile devices with add-on transaction processing devices, such as magnetic strip card readers, smart card devices and NFC enabled Point of Sale devices, to work together with the AccessGuard Platforms to deliver a highly secure end-to-end mobile payments solution.

Source: RealWire

Global Mobile Transactions Forecast to Reach $1 Trillion by 2014

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New research forecasts predict unprecedented growth in mobile transactions worldwide, with the total value of global mobile transactions increasing from $162 billion in 2010 to $984 billion in 2014.

The research was conducted by Yankee Group, a Boston-based  technology research and consulting firm.

While the overall dollar figures are impressive, the firm’s consumer survey results also show that less than 10 percent of respondents would be willing to pay extra for mobile transaction services such as mobile banking, mobile coupons and mobile payments.

“Every silver lining comes with a big, dark cloud and the explosion in mobile transactions is much the same,” said Nick Holland, senior analyst at Yankee Group. “Although mobile transaction service usage is increasing phenomenally, consumers show little interest in paying any additional fees for them. If banks, mobile operators, card networks and retailers want to tap mobile transactions as a revenue stream, they’ll need to come up with more creative schemes than per-transaction fees.”

Yankee Group’s mobile transaction forecast tracks metrics on mobile banking, international and domestic remittances, contactless cards, mobile coupons and NFC communications. Other forecast findings include:

  • Asia-Pacific overtakes EMEA as the mobile banking powerhouse: In 2010, EMEA leads all regions with 42 percent of worldwide active mobile banking users, followed by Asia-Pacific (38 percent), North America (16 percent) and Latin America (4 percent); but by 2014, Asia-Pacific leads with 54 percent, followed by EMEA (32 percent), North America (10 percent) and Latin America (4 percent).
  • Mobile coupon usage explodes: The number of active mobile coupon users is expected to grow from 2.7 million in 2010 to nearly 35 million in 2014.
  • Near field communications (NFC) takes off: The number of NFC-enabled phones will grow from just 834,000 in 2010 to 151 million in 2014, a CAGR of more than 300 percent. Similarly, the value of NFC-based transactions will explode from $27 million in 2010 to $40 billion in 2014.

The report is entitled:  “A View from the Trenches: What Consumers Think of Mobile Transactions.”

Source: Yankee Group.

Mobile Payment Markets: Strategies & Forecasts 2010-2014

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This report provides analysis of the entire mobile payment market providing case studies, vendor comparisons and forecasts for digital and physical goods payments, NFC payments and mobile money transfer & remittances.

For each mobile payment segment, the report provides five year forecasts for gross mobile payment transaction value in eight key regions. Through one-on-one interviews and 22 case studies across the mobile payments market, this report explores many of the live products and services and discusses how the sectors are becoming increasingly blurred as service providers are expanding their product offering.

This report discusses all the key issues affecting the mobile payments industry, including consideration of the impact of the growth of smartphones and mobile apps and how the market is likely to develop over the next few years.

Key Questions Addressed by this Report:

  • What is the size and growth of the total mobile payments market?
  • What are the key factors driving market growth?
  • Which segments of the mobile payments market growing the fastest?
  • What are the regional market sizing trends?
  • What are the strategies of the key mobile payments providers?
  • What are the strategies of key mobile payments vendors?

Key Benefits:

  • A unique analysis of the mobile payment markets including technologies, market characteristics and forecasts.
  • Practical analysis of emerging opportunities for vendors & operators.
  • Unique insight: interviews of leading players with significant experience of the mobile payment markets.

More information: Mobile Payment Markets: Strategies & Forecasts 2010-2014.

Hottest Mobile Payment Startups

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Here’s a preliminary list of the hottest mobile payment startups.  Feel free to add to the conversation:

Carrier Billing

Purchase in App (not billed via carrier)

  • Apple (iTunes)

Contactless / Mobile Contactless:

P2P Transfer

Mobile Checkout

China

  • UMPay
  • SmartPay
  • LianLian

India

  • Paymate

Philippines

  • Globe GCASH

Japan

  • Mobile Suica
  • Edy

Reference: GusFundler

Deutsche Telekom May Purchase Payments Company for NFC Expansion

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Deutsche Telecom AG may buy or partner with a payment processor as it looks to expand into near-field communication transactions using mobile phones.

Deutsche Telekom, Europe’s largest phone company, may “have financial relationships and perhaps own a financial entity” as demand for the transactions and associated services grows, Chief Technology Officer Ed Kozel said in an interview in Barcelona today.

via Bloomberg.

Mobile Operators Call For Openness As Data Load Rises

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The surging data traffic across the globe creates significant opportunities for mobile operators, but the industry also needs to focus on a number of key priorities, including greater openness, a number of operators said Tuesday.

In a keynote speech at the ongoing Mobile World Congress in Barcelona, industry organization GSMA’s Chief Executive Robert Conway said there are likely to be around one billion mobile broadband connections by 2012.

via Wall Street Journal.

Chase Partners with Mitek Systems for Mobile Check Deposit Solutions

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Chase has entered into a strategic agreement with Mitek Systems, Inc., a developer of advanced-image analytics and mobile-document-capture applications, to develop a suite of innovative image-capture solutions across multiple smartphone operating systems.

“Mitek’s Mobile Deposit product helps us deliver on that promise by making mobile check depositing convenient and quick, across a variety of platforms.”

The agreement enables Chase to build on the success of its award-winning QuickDeposit feature by deploying Mitek’s mobile-banking and advanced image-capture and analytics products across a variety of smartphone operating systems. QuickDeposit allows customers to deposit checks anytime and anywhere with a click of their mobile phone camera.

“Customers demand an efficient and reliable mobile-banking experience from Chase,” said Jack Stephenson, managing director of Mobile, Ecommerce and Payments, JPMorgan Chase. “Mitek’s Mobile Deposit product helps us deliver on that promise by making mobile check depositing convenient and quick, across a variety of platforms.”

Mitek President and CEO James B. DeBello said: “At Mitek, we enhance the consumer’s mobile-payment experience with advanced capabilities for depositing checks and paying bills that are accurate, secure and easy to use. We are proud to partner with Chase for the use of our patented software solutions.”

In addition to its QuickDeposit feature, Chase provides consumers with industry-leading mobile banking services, including:

  • Award-winning Chase mobile banking applications for iPhone and Android users.
  • Text Banking: allows customers to request from any mobile phone and receive within seconds their account balances and transaction history on checking, savings, credit card, mortgage and home equity accounts.
  • Instant Action Alerts: text messages are sent the moment a checking account balance falls below a pre-selected amount; the customer can then instantly transfer funds through a text-message reply.
  • Chase QuickPay feature is now available for iPhone users, allowing them to send money to and receive funds from virtually anyone who has signed up for the service with an e-mail address.
  • Mobile Chase.com website, offering standard services for all mobile banking customers.

Source: Business Wire

Nokia Siemens Networks and MoreMagic Solutions Partnership to Provide Mobile Commerce and Financial Services

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Nokia Siemens Networks and MoreMagic Solutions have announced a global partnership to provide mobile commerce and financial services. The jointly developed Mobile Payment Solution enables the delivery of a range of services including money transfer, mobile banking, mobile payments and near field communication (NFC) proximity payments.

The joint Mobile Payment Solution interconnects consumers, mobile operators, financial institutions, retailers, agents and other members of the mobile commerce and financial services value chain to enable seamless monetary transactions. The approach is particularly attractive for developing markets where fewer people have access to bank and credit cards to transfer money.

Rick Centeno, head of charging, billing and care at Nokia Siemens Networks said: “We are very excited about the growth in the mobile payments space in general and about mobile money and NFC payments in particular. Our partnership with MoreMagic provides us with a flexible architecture that integrates very well with our flagship products. The combination of MoreMagic solutions with Nokia Siemens Networks’ integrated Subscriber Data Management, Identity Management and Unified Charging provides a comprehensive set of Mobile Payment Solutions in this innovative market segment.”

Pankaj Gulati, CEO and Chairman, MoreMagic added: “Mobile commerce and financial services present some of the most exciting opportunities available today which are totally revolutionizing the way people interact with cash and manage their finances. We are delighted to be partnering with Nokia Siemens Networks and look forward to the evolution of mobile payment services.”

LPTIC (Libya Post, Telecommunications and Information Technology Holding Company) is trialing Mobile Payment Solutions in close collaboration with Al Madar and Libyana, the two leading mobile operators in Libya. LPTIC plans to extend mobile payments as a service to all mobile operators across Libya as an enhancement to its operations. The Project which is set to run over a period of four months, will provide customers with easy, secure and convenient access to basic financial services which has previously been enjoyed only by a small percentage of the population and access to NFC proximity payments for purchasing anywhere at anytime.

Dr. Samir Elbuni CEO of LPTIC said, “We are delighted to bring state-of-the-art mobile payments technologies to Libya through internationally recognized partners. We believe that the market is primed for such a solution and we expect a huge acceptance in the market by mobile-savvy consumers.”

Source: PR Newswire

Garanti and Turkish Mobile Launch First Nationwide NFC SIM Mobile Payment Program

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Garanti and Turkish mobile network operator Avea recently moved from pilot phase to general commercial availability of their system to adapt existing mobile phones for NFC payments.

VeriFone Systems’ NFC contactless payment acceptance systems are a key interface between merchants and consumers’ mobile phones in Garanti Bank’s first-in-world rollout of a nationwide integrated NFC SIM mobile payment program.

Consumers can purchase and install NFC capable SIM cards that allow them to use their mobile phones for electronic payment at NFC contactless acceptance devices in merchant locations. VeriFone has supplied 10,000 NFC-capable devices to Garanti for merchant use.

“Garanti demonstrated that NFC is now commercially viable,” said Soner Casur, vice president and general manager of VeriFone South East Europe. “The merchant/consumer interface is crucial to success of NFC mobile payment adoption and VeriFone is thrilled to provide key payment acceptance solutions that make it easy to transition to this new era of mobile payments.”

VeriFone is one of the main suppliers of payment solutions to Garanti, with more than 150,000 systems implemented throughout Turkey. For NFC mobile payments, VeriFone’s PINpad 1000SE currently provide merchants and consumers with a field-ready solution for implementation of mobile payments.

VeriFone systems have been in use for Garanti’s existing Bonus Trink contactless payment system, which has provided bank customers with the ability to make payments using a credit card, key fob, watch or the Bonus Trink contactless sticker.

With the new add-on SIM card with antenna from Gemalto and Garanti pre-paid MasterCard PayPass that is loaded in the SIM manufacturing stage, consumers can immediately adapt existing and new mobiles for NFC mobile payments. This product is the first commercial add-on NFC SIM that supports open platform payment system around the world.

Source: Business Wire

Google NFC Mobile Payment System Announcement May Come This Week, Says Analyst

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Susquehanna Financial Group analyst Marianne Wolk believes Google could unveil a mobile-payment system, based on near-field communication (NFC), at Mobile World Congress this week. The conference is being held in Barcelona, Spain from February 14-17, 2011.

“We see several challenges to Google as a mobile-payment platform. Merchant acceptance is critical, and even with a well-connected merchant acquirer such as First Data or GPN, merchants are reluctant to adopt an offering that is not an industrywide standard,” Wolk wrote in a research note Feb. 14, 2011. Google declined to comment.

via eWeek.com.