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Visa and Nokia to partner on mobile payments

January 11, 2007 | KatrinVerclas
file under:
m-payments, mobile fundraising, mobile payments, mobileactive
tools:

Nokia and Visa announced yesterday a global system to turn mobile phones into wallets for millions of customers.  Reuters reports that "Users can pay for groceries and other purchases by swiping a phone over a reader that electronically communicates with a microchip on the phone. Phone owners confirm the purchase with the push of a button and the deal is complete."

The platform was developed after a number of trials around the world (I heard about some trias in Malaysia last year that were very promising) and enables mobile payments, remote payments, person-to-person payments, and mobile coupons. It also enables mobile fundraising for nonprofit organizations in new ways that have not been possible to date.

Consumers manage their payment accounts and funds from their mobile devices. IBM has also helped to create the mobile payment system.

Visa said in a statement at the Consumer Electonics show that it will use global technology standards which have been selected and developed over the past few years by groups such as the Mobile Payment Forum from the world's major credit card companies, telecoms operators, chip makers and handset vendors.

Reuters reports that the wireless standard "that will link mobile phones with payment systems in stores and elsewhere will be the Near Field Communication (NFC) chip, which will be hidden under the phone cover and makes contact when swiped over a reader."

Visa said its cards and payment systems currently generate more than $4 trillion in sales volume worldwide. The initial version of the mobile payment platform launched on Monday offers contactless mobile payment, personalization over mobile telephony networks, coupons and direct marketing. Subsequent versions of the platform, to be made available later in the year, will include remote payment -- also using mobile telephony networks -- and person-to-person payment.

Until now, mobile payment systems have been restricted to trials, and most test only one or a few services.  Nonprofits need to watch this market closely, especially those that rely primarily on members and donor contributions. The mobile market is growing by leaps and bounds around the world. Western organizations need to pay attention to mobile content and commerce to keep up wioth changing consumer demand and expectations.