Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
First Data mBanking Solution Adopted by Texas Banks
American Bank of Texas, Marble Falls, Texas, and Waggoner National Bank, Vernon, Texas, have launched First Data’s Mobile Manager – mBanking solution. The offering is now available to their Internet banking customers following a successful internal pilot period. First Data Corporation is a global leader in electronic commerce and payment processing.
With the First Data Mobile Manager – mBanking solution, financial institutions can rapidly implement mobile banking with robust functionality. This solution integrates seamlessly with First Data’s FundsXpress online banking platform, enabling a consistent experience with the same capabilities as online banking on a mobile device, and only one set of logon credentials to manage.
First Data offers the Mobile Manager – mBanking solution as a fully hosted and integrated service. This results in substantially lower costs for a financial institution than developing a solution in-house. Since launching Mobile Manager – mBanking at the beginning of 2011, First Data has signed 60 financial institutions for the service.
“After piloting this solution internally, we saw firsthand that it had the capabilities our customers are looking for,” said Mark Few, executive vice president, American Bank of Texas. “The implementation was painless – especially considering the complexity of the product – but integration is only the first step. We also feel confident that, because we have chosen First Data for our mobile solution, we will be able to keep pace as the mobile marketplace evolves.”
First Data‘s Mobile Manager – mBanking product enables financial institutions to offer all three modes of mobile banking: SMS, mobile web, and downloadable applications, including a uniquely branded iPhone app available through the App Store online store. First Data plans to roll out the same capabilities for Android phones, with availability in the Android Market during the first half of 2011.
The ability to offer all three modes is key for financial institutions that wish to position themselves for success as mobile banking providers. According to the 2010 Mobile Banking and Smartphone Forecast from Javelin Strategy & Research, consumers who bank with their mobile phones do so using all three methods, yet fewer than half of the financial institutions researched by Javelin offered all three modes in 2010.
“Partnering with First Data has expanded mFoundry’s reach and made our award-winning mobile banking product accessible to an even larger base of customers,” said Drew Sievers, CEO and co-founder, mFoundry. “This relationship results in a powerful solution that offers robust mobile capabilities without the technological hurdles of implementing them – enabling financial institutions that have more limited development resources to meet the challenge of the marketplace.”
First Data’s Mobile Manager service is part of a comprehensive mobile commerce suite that includes contactless cards solutions and a Trusted Service Manager (TSM) platform.
“Mobile banking is an important stepping stone on the path to full mobile commerce,” said Dom Morea, First Data division manager of Mobile Commerce Solutions. “This powerful combination of technology from mFoundry and First Data, along with our high level of client support, creates a scalable solution that enables our clients of all sizes and charters to join in this evolution.”
Source: First Data
BilltoMobile Demonstrates Mobile Payments Via GSMA’s OneAPI Gateway
BilltoMobile, a leading provider of mobile payments for online purchases in the United States, has announced that it has been selected by the GSMA as a demonstration partner to showcase how mobile payments can be made in the United States via the GSMA’s OneAPI Gateway. The demonstration at the GSMA Mobile World Congress this week will illustrate how the BilltoMobile payment gateway can be connected to the GSMA OneAPI Gateway, allowing online merchant sites and developers to enable mobile payments to 65 per cent of all U.S. wireless subscribers.
BilltoMobile’s secure payment gateway is directly connected to the top two U.S. carriers’ billing, authentication and customer care systems. Purchases take seconds to complete, require no pre-registration or special hardware, and have no association with credit or bank cards. Purchases appear directly on the subscriber’s wireless bill, with no interest charges or subscriber fees of any kind.
“We’re very pleased to be working with BilltoMobile to demonstrate how we can expand the reach of the GSMA OneAPI Gateway to include mobile payment capabilities throughout North America,” said Graham Trickey, Senior Director at the GSMA. “BilltoMobile’s low-cost, robust and secure mobile payment gateway has allowed us to extend the reach of the GSMA OneAPI payment service and to enable the services that people really want in a clear, simple and secure way.”
BilltoMobile launched the United States’ first Direct Mobile Billing (DMB) service for Verizon Wireless’ subscribers in May 2010, attracting a number of prominent online game companies, and a wide range of digital goods and services merchants that offer the BilltoMobile payment option on their web sites. In October 2010, BilltoMobile launched its same proprietary DMB service in partnership with AT&T. Today, BilltoMobile is the only mobile payments company in the U.S. with direct-to-carrier billing agreements with two top U.S. carriers —reaching over 180 million U.S. mobile payment-capable subscribers.
Denise Archer, VP Carrier Partnerships, BilltoMobile, said, “We are very proud to be part of the GSMA OneAPI initiative, supporting the organization in reaching its ease-of-access goals, and demonstrating how quickly and easily we can expand the reach of the current GSMA OneAPI Gateway to offer mobile payments to their merchants in the United States.”
San Jose-based BilltoMobile is a privately held U.S. company that is providing Direct Mobile Billing to carriers in North America. BilltoMobile’s strategic partner, Danal Co., Ltd (Seoul, So. Korea), has integrated its financial-grade Direct Mobile Billing service with 14 carriers in Korea, Taiwan and China.
Source: Marketwire
Belgium’s Financial and Mobile Telephone Sectors to Develop New NFC Mobile Payment System
The Belgian financial sector and the Belgian mobile telephone companies—Belgacom, BASE (KPN Group Belgium) and Mobistar—have partnered to launch a new mobile payment system in Belgium. Currently, they are planning to develop a product that will be accessible to the public at large with a launch date in 2011.
The continuous technological improvements, the growing range of mobile telephone functions (telephone calls, SMS messages, pictures/images, internet access, etc.) and the ever increasing user-friendliness have turned the mobile telephone into an indispensable tool for all Belgian citizens. Consequently, the financial sector, which wants to give a new boost to electronic payments in Belgium, and the telecom sector have begun planning new steps forward in the payment systems space.
The aim of the partnership is for these complementary industries to put their experience, know-how and expertise together so as to offer a new standard product for mobile payments in the Belgian market. The plans focus on payments security and user-friendliness of the new product for consumers and merchants alike. The purpose is to make it possible for consumers to swiftly use their mobile as an electronic wallet for the standard payment of small amounts (maximum 25 EUR). The system will be based on the use of SMS and contactless Near Field Communication (NFC) technology.
In practice, this new and fully mobile system will allow consumers to use their mobile for paying their car park ticket, bus fare, drinks and even their online purchases. This technological innovation also creates new opportunities for merchants in the field of payments.
The new system is the result of a close cooperation between the financial sector and the telecom sector. Both sectors are convinced that the development of a standard product is one of the key factors for a fast and effective growth of mobile payments in Belgium. The new payment system is scheduled for launch in 2011.
Source: WebWire
Partnership Between NTT DOCOMO and KT Corp Will Bring Cross-border NFC Services to Japan and South Korea
NTT DOCOMO has partnered with South Korea’s leading telecom operator, KT Corporation, to use near field communication (NFC) technologies to develop cross-border services for mobile payments, mass-transit ticketing, promotional coupons and other NFC applications. The services will launch in their respective markets of Japan and South Korea from around the end of 2012.
Through their joint Business & Technology Cooperation Committee, the two companies are developing NFC common specifications that will be incorporated in devices, networks and billing platforms for seamlessly connected mobile NFC services. Customers travelling between South Korea and Japan will access the services using compatible Android handsets embedded with contactless IC chips.
DOCOMO also plans to submit an outline of the common specifications to global industry associations and standardization bodies, such as the GSM Association.
With the ultimate goal of building an international environment for compatible NFC services, DOCOMO has formed strategic tie-ups with payment technology company brand Visa Inc., NFC chip and mobile handset manufacturer Samsung Electronics Co., Ltd. and SIM card vendor Gemalto N.V. In addition, DOCOMO will collaborate with Sumitomo Mitsui Card Co., Ltd. and bitWallet, Inc. for enhanced cross-border services.
To prepare for the services, DOCOMO and KT will accelerate development of their existing infrastructures, as well as solicit the participation of NFC-based service providers in various industries. DOCOMO has been providing NFC-based Osaifu-Keitai™ mobile-wallet services in Japan since 2004. KT has been operating a post-paid mass transit service in South Korea since 2002.
DOCOMO will demonstrate the envisioned international NFC services at its exhibition booth during Mobile World Congress 2011 in Barcelona, Spain from February 14-17.
Hyunmi Yang, Executive Vice President of KT, said, “Based on our long commercial experience in various financial-convergence services, the NFC collaboration between KT & DOCOMO will contribute to building a sustainable global ecosystem.”
Bill Gajda, Head of Visa Mobile, Visa Inc., said, “Visa has been instrumental in developing the global standard for mobile payments based on NFC technology. We welcome this project and see great value in extending the security, convenience and global interoperability of NFC-based mobile payments to consumers in Japan and Korea.”
“We are delighted to work with NTT DOCOMO by providing competitive NFC IC technology to develop an NFC ecosystem that offers retail and commercial customers a very high degree of convenience, services, interactivity and security on their mobile devices. Thus, we believe this business collaboration will lead to a market-leading solution, new innovation and broad commercial acceptance around the globe,” said Dr. Dojun Rhee, Vice President of the Marketing Team, System LSI Division, Samsung Electronics Co. Ltd.
“Gemalto is delighted to contribute its world-leading NFC expertise for DOCOMO’s deployment of cross-border mobile contactless services,” commented Tan Teck-Lee, President, Gemalto Asia.
Hideo Otsuka, General Manager of the IT Business Dept. of Sumitomo Mitsui Card Co., Ltd., said, “We’ll aggressively collaborate more with DOCOMO so that we could develop new, fascinating cross-border payment services based on NFC technologies.”
Kazumasa Miyazawa, Chief Strategy Officer, Head of the International Business Dept. of bitWallet, Inc., said, “The specifications announced today are an ideal solution for the development of NFC services worldwide. Through their adoption, we aim to introduce seamless Edy services worldwide.”
Tagattitude Reiterates Commitment to NSDT Mobile Money in Nigeria
Mobile payment and security technology company, Tagattitude has reiterated its commitment to mobile money programs in Africa. Mobile payments have skyrocketed, particularly in areas where branch banking is not well developed.
Showcasing the product (called Near Sound Data Transfer or NSDT) at the 2011 Mobile money Remittance summit, at the just concluded 2011 Mobile money Remittance summit, Mr. Femi Akinware, a Tagattitude company director, said the speed at which technology has continued to drive change in the global economy had made mobile payment inevitable in Nigeria, and that Nigerians have no option than to embrace the new mobile payment system that are being offered by modern technologies such as NSDT.
The service was launched for Mobile Payment in June, 2010.
via Vanguard (Nigeria).
Apliman Technologies and Creova team up to deliver Mobile Money to Africell
According to a new report from Juniper Research, the global mobile money transfer market will grow beyond $65bn by 2014. The service mainly focuses on developing countries where users do not have access to banking services and use traditional means of payment instead, such as physically transporting the money or storing cash at home. Mobile Money offers a speedy remittance channel for people to send and receive money efficiently, encouraging circulation of money nationwide.
Apliman Technologies and Creova have partnered to offer a secure and practical mobile money transfer solution to Africell, allowing people to send and receive money, nationwide, to friends and family who themselves may not have bank accounts. Consequently, it brings many unbanked customers under the formal financial system, and enables money transfers to break through rural areas which allows for economic growth in developing economies.
Africell is a mobile telecommunications company serving The Gambia and Sierra Leone. It is a subsidiary of the Lebanese telecommunications company Lintel Holding. Africell has 652,000 subscribers (2q 2009) in the Gambia and 600,000 in Sierra Leone. Africell is the Leading GSM Operator in the Gambia with more than 69% of the GSM market Share. All its core network and radio equipments are supplied by Siemens.
‘Apliman-Creova’ Mobile Money solution is a customizable system that works on a role-based model: Sender, Dealer, Point of Sales Agent, Cashier, and Administrator, to ensure reliable delivery of funds, anytime, from a customer to any other mobile phone user. No special interface is required besides a mobile phone. It is designed to be integrated into the existing mobile network infrastructure, allowing mobile operators and financial institutions to offer a value added service without incurring additional costs. The platform can be further customized to support other payment methods which helps customers and dealers not only to perform paperless money transfer, but also to complete financial settlements in real-time. Fraud reduction is guaranteed with three security levels and extensive set of transaction reports. This simplicity, reliability, and flexibility add to the attractiveness of the service and create exciting opportunities for the mobile money ecosystem.
“Apliman Technologies is proud to team up with Creova, one of the major international players in Mobile Money. We are looking forward to a continuous and prosperous cooperation that will expand this technology into many other African countries, where it is becoming one of the most important money generating VAS services.”, said Mr. Tarek Itani, Executive Director of Apliman Technologies.
“Our solutions are at the forefront of the mobile payments industry,” said Ramzi el Fekih, CEO of Creova. “The Mobile Money service provides an innovative set of low cost financial solutions, proven to increase banking activities and create customer loyalty. It is easy-to-use, accessible, secure, and traceable. Creova is unique in providing innovative technology, managed services, and go-to-market partnership models to ensure success of the Mobile Money service. It will revolutionize the world of mobile telephony and financial services while optimizing and providing alternative choices and freedom to customers. Our rich and completely modular platform design has been developed with the goal of allowing our customers a fast deployment, get a preferred position in the market, and open to future applications according to the needs of customers and the local market(s).”
“We believe Apliman is the right partner for Creova in the region, and our expectations on the current and future projects that will arise from our partnership are very high. This is the first of many more that will surely follow”.
Source: Apliman, Wikipedia
YESpay to Offer Mobile Payments in Europe and North America
YESpay International announces that it will shortly enable smart phone based mobile payments at many of its selected merchants that participate in its web and mobile YESpay-Wallet card payment program, allowing customers to pay for web, mobile and in-store purchases with select smartphones.
YESpay has already launched its YESpay-Wallet service for web-based card payments with many merchants such as YES-secure.com Peer-to-Peer Social Lending web marketplace. These innovative merchants encourage their customers to create personal YESpay-Wallets™ in order to make card payments on their websites.
YESpay is expected to launch its YESpay-Wallet Mobile App for select BlackBerry and iPhone smartphones, and iPod touch. Dr Chandra Patni, CEO at YESpay International said, “Customers of participating YESpay-Wallet merchants will have access to one of the most extensive global mobile payment program that enables the fastest way to pay on the web, on the mobile and in-store. This global program over the next 18 months could include over 3,000 YESpay merchants”.
YESpay regularly processes millions of cardholder payments for its merchants and predicts mobile payment will attract customers and merchants alike looking to experience the speed, ease and convenience of paying with their mobile phone. “Customers can create their individual YESpay-Wallet™ in which they can add details of their credit and debit cards as well as create YESpay Virtual Cards – they can then make card payments at YESpay web merchants or by using the YESpay-Wallet™ Mobile App in-store. This will extend customer experience at potentially all our merchant locations,” said Tasneem Bunglowala, YESpay Mobile App Product Manager. “With mobile payment, the YESpay-Wallet platform with support for Virtual Cards further elevates the customer/merchant experience by delivering convenience, rewarding loyalty and continuing to build an emotional mutual connection.”
To experience mobile YESpay-Wallet payments at participating YESpay merchants, customers just need to download the free YESpay-Wallet Mobile App for select BlackBerry smartphones, iPhone or iPod touch mobile devices. Possibly one-quarter of U.K./USA/Canadian customers of YESpay merchants use smartphones, of which nearly three quarters use BlackBerry smartphone or iPhone mobile devices.
The YESpay-Wallet Mobile App allows customers to manage their virtual and credit cards, check their Virtual Card balances, reload their Virtual Cards with any major credit/debit card, check their Retailer Discount Coupons and Promotions status and find a nearby YESpay Merchant store with the store locator feature. In addition, using the mobile app customers can pay with their smartphone by selecting one of their credit/debit or Virtual Cards in their electronic wallet, holding their mobile device in front of a scanner on the countertop and scan the card Mobile App’s on-screen barcode to make a purchase.
Mobile payment is built on the YESpay-Wallet and Virtual Card platform, which continues to experience significant customer adoption. Mala Chauhan, Marketing Manager at YES-secure.com said, “Our lending members have loaded more than £0.3 million using their YESpay-Wallet just in the first full quarter of operation in Q4 2010. We are now feverishly working on the introduction of the quick and easy YESpay-Wallet Mobile App for greater convenience. A growing segment of our members use smartphones, and through the YESpay-Wallet Mobile App, we can provide them with the fastest way to pay.”
Source: PRweb
LG to Launch NFC European Mobile Payment System in 2012
LG Electronics has announced plans to launch an NFC mobile payment system in Europe in 2012, enabling consumers to pay for products and services using their smartphones. Near Field Communication (NFC) will be the dominant system for mobile phone payments by 2015 according to Frost and Sullivan.
Near field communication or NFC, is a short-range high frequency wireless communication technology which enables the exchange of data between devices over about a 10 centimeters (3.9 in) distance.
The technology is a simple extension of the ISO/IEC 14443 proximity-card standard (proximity card, RFID) that combines the interface of a smartcard and a reader into a single device. An NFC device can communicate with both existing ISO/IEC 14443 smartcards and readers, as well as with other NFC devices, and is thereby compatible with existing contactless infrastructure already in use for public transportation and payment. NFC is primarily aimed at usage in mobile phones.
via LG to launch European NFC mobile payment system in 2012 – Business News – Business Review Europe.
Additional sources: Wikipedia
Jumio Announces Advisory Board of Former Google and Amazon Veterans
Jumio, the soon-to-be-launched payment solution based in Mountain View, California, today announced part of its high profile advisory board, with industry veterans from Amazon, Google, and NASA.
Daniel Mattes, founder and CEO of Jumio, who also started Jajah.com, has invited Internet pioneers Zain Khan (former Google executive), Mark Britto (former Amazon executive) and Maarten Linthorst (former NASA partner).
“We are extremely pleased that our ideas and technology attract such talent. It shows me that we are right on track with our approach to make online and mobile payments easier and more secure,” says Mattes.
Zain Khan, a former Google executive known as the “Ops guy,” built Google’s impressive infrastructure from scratch in 1999. Zain, now turned private investor, says about Jumio: “It’s mainly the technological brilliance and the complexity that lies in this payment solution that excites a tech-person like me. Add a proven team and the product is bound to be successful.”
Board member of Bill Me Later (acquired by eBay) and founder of Accept.com (acquired by Amazon), Mark Britto was responsible for building the main payment infrastructure for Amazon. He sees Jumio as the solution to one of the few remaining Internet problems: “The challenge of fully securing online payments has been an ongoing one. Jumio is perfectly prepared to solve the problem.”
Working with NASA back in 1969, Maarten Linthorst paved the way for the Internet as we know it, interconnecting the first two servers to become the ARPANET. He also developed the X25 protocol, which is used for every credit card transaction worldwide. Linthorst believes that “Jumio will revolutionize the way we think about online payment — both from a technological and a social point of view.”
A former CEO of one of the largest online gambling groups worldwide, Bjorn Evers sees “Jumio as a definite game changer and the answer to online payment fraud.”
According to the company, Jumio’s mission is to make payments simpler, faster, more convenient and — above all — more secure. “$191 billion is the annual cost caused by credit card fraud in the United States, and it’s time to act,” says Mattes. “With our advisory board of brilliant minds, we are well-prepared.”
Source: LaunchSquad
BMW SmartKey Can Act as NFC Electronic Payment Device
BMW Group Research and Technology has developed a multifunctional car key which enables cashless payment and personalized vehicle access, bringing another device–the car key–into the running to be the next cashless wallet.
“As part of our research project we first integrated a security chip into the key casing, which communicates across short distances by radio with a card reader,” says Hans-Jörg Vögel, project manager at BMW Group Forschung und Technik. In future the key could also be used for other transport systems. Indeed, electronic tickets for bus, train and air travel could all be stored on the chip. The credit card function in the security chip allows electronic payments to be carried out quickly, securely and conveniently from the prototype key.
Adding a personalized credit card function to the car key opens the door to a wealth of other mobility scenarios. For example, the holder of the key can enjoy secure in-car access to personal data since the key gives the driver authorized online access to his personalized ConnectedDrive services inside a BMW–not only when he’s traveling in his own car, but also from a BMW hire car, for example. Here, the driver identifies himself using his personal key and the car adopts his individual settings. Access to personal data such as address books, favorite radio stations and personal subscriptions to services and content providers is activated through the multifunctional key.
Because the driver can be identified with total certainty, the key can now–for the first time–be linked to the car owner rather than any particular car. This also makes hiring cars and car sharing, for instance, even easier.
“With the concept of integrating a cashless payment function into a car key, we are working on ways of linking up vehicle technology and lifestyle,” says Prof. Raymond Freymann, Director of BMW Group Research and Technology.