Operators to Launch NFC-Based Mobile Payment Services

    - Major Step Towards a Global Interoperable Mobile Payments System

    MACAU, China, Nov. 13 /CNW/ - Over the next several months, 12 mobile
operators will run trials of contactless mobile payment services in Australia,
France, Ireland, Korea, Malaysia, Norway, The Philippines, Singapore, Taiwan,
Turkey, and the U.S. as a precursor to commercial launches. The trials form
part of the GSMA's Pay-Buy-Mobile initiative, which is designed to provide a
single global approach to enabling contactless payments using a mobile phone.
Consumers will be able to use their handsets to quickly, easily and securely
pay for goods and services in shops, restaurants and train stations.
    The Pay-Buy-Mobile Initiative supports the use of the Single Wire
Protocol, which was adopted by ETSI(i) as a standard in October, to link the
Universal Integrated Circuit Card (UICC) contained within the mobile handset
with the phone's embedded Near Field Communications (NFC) chip. The NFC chip
can communicate with existing contactless payment systems to deliver a wide
range of secure, interoperable and transparent services, such as credit and
debit payments. There are 35 operators with 1.3 billion customers
participating in the initiative.
    In a global first, executives from Korean operator KTF have paid for
goods by passing their NFC-equipped handsets by contactless readers in retail
outlets in Korea, Taiwan, and the U.S. in a trial involving real transactions
facilitated by MasterCard. For this trial, MasterCard's Paypass application
and Shinhan Bank's credit card application were downloaded to a KTF UICC
embedded in the mobile handsets, which were provided by LG Electronics and
Samsung Electronics. The retail outlets at the respective locations were
equipped with readers that support the NFC interface and accept MasterCard's
Paypass applications, enabling real transactions in three different countries.
    "Just nine months after this programme was launched in Barcelona, the
first pioneering mobile operators are preparing for the rollout of commercial
services that have the potential to become the foundation of a global,
interoperable mobile payment service," said Rob Conway, CEO of the GSMA, the
global trade association for mobile operators. "Mobile payment services, which
will enable transactions to be completed faster in shops, restaurants and
train stations, will also make it easier for merchants to offer their
customers precisely-targeted discounts and other promotional offers."
    Both consumers and merchants see significant benefits from using the
mobile phone as a payment form factor at point of sale, according to research
carried out by Serrula on behalf of the GSMA. Two-thirds of the 2,574
consumers in 17 countries surveyed said that they expect to begin using their
mobile phone to pay at point of sale within two years of the service becoming
available. Moreover, 50% of the 240 merchants from 10 countries surveyed see
promotional opportunities in using the mobile phone as a payment device.

    Supporting Quotes

    "We are proud to be the first operator in the world to trial this global
payment scheme", said Young-Chu Cho, CEO of KTF, a leading HSPA operator in
Korea, "We have been working diligently to deliver more than mobile values to
our customers and NFC M-Payment is definitely a step forward in realizing our
    "By adopting the global standard, experiences and technology, we aim to
trigger our domestic NFC related industries to align with global standards and
develop more advanced services and products to energize the telecommunications
category. We are glad to join this global payment scheme trial to demonstrate
cross-border interoperability," said Mr. Jan Nilsson, President of Far EasTone
    "Australia is experiencing a wireless revolution with the highest growth
rates in the world. Telstra is working with one of the country's leading banks
and a global credit card provider to make it easier for customers to pay for
goods and services with their mobile phones with a trial to begin early next
year," said Sol Trujillo, CEO of Telstra.
    "In Europe, Orange is a pioneer in promoting high-scale trials in
association with a large number of banks, major financial institutions and key
MNOs to launch interoperable mobile contactless payment services," said
Mung-Ki Woo of Orange, VP Payment and Contactless. "Orange has announced
trials in the UK and a commercial launch in France in 2008, that will include
not only payment but also transport ticketing, football stadium ticketing, and
interactive billboards with key service partners."
    "AT&T was the first carrier in North America to participate in a
large-scale NFC contactless payments trial in 2005," said Mark Collins, VP of
Consumer Data Services at AT&T Mobility. "Even from our early efforts in this
space, we've seen the value of engaging a broad ecosystem to drive standards
and promote the adoption of mobile payment services. We are excited to build
on our early work in this space and to play a role in establishing global
standards for mobile payments."
    "Maxis' participation in GSMA's global Pay-Buy-Mobile trials is a
significant milestone in our overall Mobile Payment strategy, which we
launched as Maxis M-Money in early 2007," said Dr Nikolai Dobberstein, Head of
Products and New Businesses of Maxis Communications, Malaysia's largest mobile
telecommunications operator. "Maxis, currently the only Malaysian mobile
operator participating in the Pay-Buy-Mobile Trial, has already rolled out a
number of mobile payment services, including Mobile International Remittances.
Maxis is also conducting trials for a hybrid multi-payment mobile service for
credit card and prepaid travel payments, incorporating NFC technology."
    "SFR, a leading HSPA MNO in France, has already conducted several trials
in the field of mobile NFC services, focused both on transportation ticketing
and m-payment. SFR is also currently testing multi-applicative NFC services in
Strasbourg, combining a credit card payment application and a transportation
application that customers are able to use in the trams and buses," said
Mireille Poggi, Mobile Payment & M-Commerce Marketing Manager of SFR. "As we
believe strongly that interoperability will be key regarding mobile NFC
acceptance by customers and service providers, SFR is in the meantime an
active member of Pegasus, a global French initiative, including both major
MNOs and banks, aiming at defining an interoperable setup in payment."
    "The popularity of MasterCard PayPass, coupled with the widespread use of
wireless technology has created many payment opportunities far beyond that of
the simple swipe of a card," said Shuan Ghaidan, Head of Product Sales and
Delivery, Asia/Pacific MasterCard Worldwide. "This new NFC-based KTF mobile
payment phone shows innovative use of the latest technology to increase
convenience by giving consumers the ability to use their mobile phones to make
contactless payments anywhere around the world where PayPass is accepted.
MasterCard is pleased to contribute to the establishment of global standards
that will help push the mobile payment market to the critical mass level."

    Notes to Editors:

    The 12 operators running trials include AT&T, Far EasTone, Orange, KTF,
Maxis, SFR, SingTel, Telstra and Turkcell.
    (i)The GSMA has contributed to the adoption of mobile NFC standards by
the European Telecommunications Standards Institute (ETSI) and is working with
other industry groups, such as the NFC Forum and the Mobey Forum, to secure
agreement around a single global approach for enabling mobile payments.
    The GSMA is about to publish two white papers on http://www.gsmworld.com,
one of which sets out several business models that can support a mobile
payment service and one of which sets out version two of the GSMA's technical
guidelines for NFC.
    The Pay-Buy-Mobile initiative builds on the infrastructure of the major
credit card companies, which have developed specifications to ensure global
interoperability between contactless chip cards and point of sale terminals,
regardless of manufacturer, the financial institution and location of
    The GSMA is working closely with leading financial intermediaries and
banks to promote globally interoperable transaction solutions. Both MasterCard
and VISA are supporting the trials with their PayPass and Visa payWave
features respectively, that enable NFC-equipped phones to effect payment
transactions at secure contactless point of sale terminals.
    LG, Motorola, Nokia, Sagem and Samsung are among the handset makers
developing phones for NFC-enabled mobile payment services.
    Gemalto, G&D and KEBT are among the UICC card suppliers supporting
NFC-enabled mobile payment services.
    Vivotech and Harex are among the companies developing NFC-enabled readers
that support NFC-enabled mobile payment services.

    About the GSM Association:

    The GSM Association (GSMA) is the global trade association representing
700 GSM mobile phone operators across 218 countries of the world. In addition,
more than 200 manufacturers and suppliers support the Association's
initiatives as key partners.
    The primary goals of the GSMA are to ensure mobile phones and wireless
services work globally and are easily accessible, enhancing their value to
individual customers and national economies, while creating new business
opportunities for operators and their suppliers. The Association's members
serve more than 2.5 billion customers - 85% of the world's mobile phone users.

For further information:

For further information: Mark Smith or David Pringle, Tel:
+44-78-50-22-97-24, +44-79-57-55-60-69, Email:press@gsm.org

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