14 DAY TRIAL // Following the GSMA's program that was announced last year and aimed to define a common worldwide approach to enabling NFC, the technology used to link mobile devices with payment and contactless systems, the Pay-Buy Mobile initiative is a just the next step for the industry.
Fourteen mobile operators, representing over 900 million mobile phone users, are participating in the initiative. The operators are Cingular Wireless/At&t, China Mobile, KALL, KTF, MCI, MTN, NTT DoCoMo, Roger Wireless, Smart Communications, Telenor, TeliaSonera, Telecom Italia, Turkcell and VimpelCom.
"The mobile phone is now becoming an essential life management tool for mobile users," said Rob Conway, CEO of the GSM Association. "By bringing payment capability into the device, users will benefit from the ability to purchase items in a secure and convenient way from the comfort of their own mobile phones, hailing an end to bulky wallets full of notes and coins."
Several mobile payment trials and services have been announced, but this is the first truly global approach that is meant to introduce mobile payment. Payments will be made by using a SIM/Universal Integrated Circuit Card in mobile phones as well as the NFC technology.
"Contactless technology will be the natural way for payments in the near future. Through this initiative the GSMA is leading the path for the implementation of a sustainable business model, including all stakeholders in the contactless payment value chain, and starting the development of innovative mobile payment services," said Cenk Serdar, Turkcell's Chief Value Added Services Officer.
The GSMA initiative will begin with a business model analysis and will be followed by an end-to-end trial in Korea later this year. The trial will include all key participants such as banks, credit card providers and handset manufacturers. Initially, LG will provide the handsets for the trial. KTF will share the results of the trial with the GSMA's operator community and similar trials will be displayed involving other operators and financial institutions.