Credit card giant MasterCard and mobile carrier Deutsche Telekom
announced on Monday that they are teaming up for an effort to advance mobile payments across Europe.
The companies aim to "build a comprehensive ecosystem around mobile
payment," allowing Deutsche Telekom's 93 million mobile customers across
Europe to use their mobile phones to pay for goods and services, Thomas
Kiessling, chief product and innovation officer for Deutsche Telekom,
said in a statement. The new system will roll out later this year
starting in Poland, followed soon thereafter in Deutsche Telekom's home
country of Germany.
"This is a huge step on our way to increase mobile payments," Kiessling added.
To begin the effort, Deutsche Telekom will offer payment cards that
come with a near field communication (NFC) chip that can be used to make
a purchase by simply moving it close to a card reader, Bloomberg
reported.
This will be followed in the first half of next year by a true mobile
wallet service, utilizing NFC technology integrated into mobile phone
SIM cards.
The system will also be open to competing banks and carriers. The
companies said the new mobile wallet service will be not only
convenient, but also secure and transparent, as each transaction will be
confirmed via text message.
"The payment space continues to be ripe for innovation, particularly
at a time when we're seeing an accelerating movement away from cash —
driven by technology," Ann Cairns, president of international markets
for MasterCard Worldwide, said in a statement. "MasterCard's heritage is
rooted in the creation of open technology, designed for everyone
wanting to benefit from a more convenient and secure shopping
experience."
The move comes about two months after
MasterCard announced its digital wallet
program, PayPass Wallet, which will let its cardholders and partners
securely pay with phones or online. MasterCard said that the PayPass
Wallet would have three components: an Acceptance Network for
electronics payments online and in stores; the Wallet itself, which will
allow banks to white-label their own wallets; and an accompanying API,
allowing third-party solutions and wallets to tap into the network
itself.
Meanwhile, recent rumors indicate that Apple's next-generation iPhone, expected to be launched this fall,
could include a NFC chip
to enable mobile payments. While mobile payments haven't really taken
off with the masses here in the U.S., some 65 percent of experts
surveyed earlier this year said they think most people will fully adopt mobile payments by 2020. For more, check out:
Are Mobile Payments Ready for Primetime? Square CTO Weighs In.
