mobile payments

PayPal inks p2p deal with Sprint

Tue, 29 Apr 2008 06:59:55 -0400

mFoundry and PayPal have inked a deal with Sprint to offer person-to-person mobile payments. The service from Sprint, called MyMoneyManager, lets PayPal users and Sprint subscribers send money to other persons who have an email address or mobile phone number. When a person receives money they get a message or voicemail to let them know they received funds. To access the funds, however, the person must have a PayPal account.

Sprint's MyMoneyManager is available on some 18 phone models from four manufacturers, including LG, Motorola, Samsung, and Sanyo. Phones must be Java-enabled and support https with 128-bit encryption. The service soft-launched at the end of March, but is now officially available.

For more on the service:
- read about mFoundry in today's Fierce 15 awards
- read this article from Digital Transactions

ALSO NOTED: M-payments trends; Usage-Cancer link? and much more...

Tue, 19 Feb 2008 06:59:50 -0500

> The NPD Group's latest report found that mobile phone sales to consumers in the U.S. reached 146 million units by the end of 2007 with total consumer sales of $11.5 billion, after rebates and promotions. Release

> The Wall Street Journal chronicles the mobile payments trend. Article (sub. req.)

> Another piece from the WSJ Asia that sums up the influence Apple and Google are beginning to exert in the wireless industry. Article (sub. req.)

And Finally... Another study links cancer to heavy mobile phone usage. Article

Mobile banking reality check

Wed, 06 Feb 2008 13:36:31 -0500

If last year was the year of overblown expectations for mobile financial services, then 2008 will be a year of the inked deal but still little progress on consumer uptake, according to senior analyst Emmet Higdon of Forrester Research. Mobile banking and mobile payments are still technologies in search of a problem, which could be just what the industry players are looking to figure out at next week's Mobile World Congress. "People expected mobile banking to take off much more quickly than it has," Higdon said. "People are trying mobile banking services and discovering that it's kind of neat, but it's hard to read transactions on that little, tiny screen."

Carriers and financial institutions are still trying to figure out what consumers are interested in doing financially on their mobile phones. Forrester's polling suggests that customers, themselves, aren't really sure what they want to do with mobile banking. The problem could be a lack of imagination. Right now, U.S. banks are encouraging users to use the exact same services on their mobiles that they can already use online. "That's fine," Higdon cautions. "But it doesn't make it compelling enough to make a large percentage of their customers to try or adopt these mobile solutions. We are still waiting to see how that experience on the mobile could be different. We are still waiting on that killer app for mobile banking."

Of course, European carriers may have a head start when it comes to rolling out mobile financial services. The fragmented carrier market in the U.S. has so far made it near impossible for the financial institutions and carriers to agree on standards for mobile payments and near field communications technology, according to Higdon. Some carriers want to use SMS as the backbone of financial apps while others are pushing downloadable applications and still others WAP.

Technicalities aside: What is that yet undiscovered financial application that will be so compelling that it drives users to the mobile handset? Mitek CEO James DeBello thinks his company's remote deposit application could be just the ticket. Three years ago the U.S. government passed legislation that allows banks to accept an image of a check instead of the paper check itself to transact the payment or deposit. Mitek took that concept and ran with it: Mitek's software allows users to take pictures of checks with their camera phones (if they are 2 megapixels or higher) and send those images to the banks for deposit.

Look for Mitek's representatives and other financial application developers seeking to crack the mobile banking code at Mobile World Congress next week. -Brian

ALSO NOTED: Dell-Google-Android?; Trend: multitouch screens; and much more...

Thu, 31 Jan 2008 06:59:50 -0500

> The rumor mill is abuzz with speculation that Google is partnering with computing firm Dell to launch a mobile phone based on the web services giant's fledgling Android OS. According to MarketingWeek, senior industry sources claim the two companies will reveal their collaboration at February's Mobile World Congress event in Barcelona, although Google insiders deny such an announcement is imminent. Article

> The multitouch trend takes off. Article

> San Francisco's BART train makes use of mobile payments in trial. Article

> Lenovo sells handset unit for $100 million. Article (WSJ sub. req.)

And Finally... Tiffany to start shipping $94,000 phone. Article

Verizon Wireless expands mobile banking services

Fri, 04 Jan 2008 06:59:55 -0500

Verizon Wireless is continuing to leverage Qualcomm's recent acquisition of mobile banking and payments company Firethorn, for mobile banking applications. The carrier now supports mobile banking services from Wachovia, SunTrust, FirstBank and BancorpSouth. The services make use of PIN and device lock-out security measures on top of whatever security the financial institution has built in. Users of the services can check their balances, transfer funds between accounts and pay bills.

For more on the new banking partners:
- read this press release

ALSO NOTED: M-payments to soar; Telstra-iPhone; and much more...

Thu, 01 Nov 2007 07:59:50 -0400

> Mobile payments to soar by 2011 according to Jupiter Research. Article

> Telstra says its in talks with Apple for bringing the iPhone to Australia. Article

> U.S. Congressional Committee votes to recognize wireless mesh technology in new mining regulations. Release

And Finally... Time Magazine names Apple's iPhone the invention of the year. Article

M-Commerce gets real

Thu, 18 Oct 2007 06:59:56 -0400

Since the CTIA Wireless 2007 conference last March, the mobile financial services sector has come of age. Verizon Wireless teamed with peer-to-peer mobile payments company Obopay to launch a mobile payment offering and most of the major banks in the U.S. have launched mobile services whether carrier-specific or agnostic. This year the MFS sector will continue to speculate about the market opportunities that lie ahead, but it will finally be able to point to hard data from real commercial launches.

Pragnesh Shah, CEO of Mobilian and former vice president of product innovation at Sprint Nextel, said that the right ingredients for mobile financial services are "percolating" as mobile carriers explore the various areas of mobile commerce with "real announcements, real services and real deployments."

While mobile banking value proposition is clear, the industry is still weighing the benefits of mobile payments and peer-to-peer services, but Verizon's partnership with Obopay has certainly lent some credibility to the market prospect there. The real question mark for the U.S. market, however, is when near field communications-enabled services like contactless payments will be available.

"We're continuing to see evolving elements around contactless payments," Shah explained. "But that will continue to be a very slow, gradual evolution because the ecosystem, infrastructure and investment required with NFC chipsets, backend systems and point of sale terminals makes for a lot to sort out--not to mention the task of finding a business model that works between banks, carriers and card associations."

Another key issue that remains uncertain is the business model. Both the carriers and the financial institutions want to control the billing relationship. It's a sticky wicket that won't go away soon. Shah's company, Mobilians, which is announcing the launch of its U.S. operations at CTIA next week, aims to solve that problem for mobile commerce. Expect the MFS conversation to get heated next week. -Brian

DoCoMo to make phone swiping obsolete

Wed, 03 Oct 2007 06:59:54 -0400

While the prospects for mobile financial services are just beginning to come to see light in the U.S., Japan has enjoyed NFC-enabled mobile payments for quite some time. Swiping your phone over a turnstile to pay for a subway fare, for example, is common in cities in the country. Now DoCoMo is looking to make that swipe obsolete with a concept phone that lets users pay through their mobile without it even leaving their pocket. The phone has a sensor built by Kaiser Technology that sends electric signals through the human body to transmit data. Payments at the tip of your fingers, literally.

For more on the concept:
- read this write-up over at Textually.org

Post-VZW deal, Obopay raises another $29M in VC

Thu, 12 Jul 2007 06:59:54 -0400

Mobile payments company Obopay has raised $29 million in its third round of venture capital funding since its founding in 2006. The company raised $10 million in its first round back in March 2006 and another $7 million six months later. Obopay, then, has raised $46 million in VC to date.

Richmond Global Cellular, an affiliate fund of Richmond Management, led Obopay's latest round, which also included investments from Qualcomm and Redpoint Ventures. New investors included AllianceBernstein, Citi and Societe Generale. The company plans to use the new funds to reach out to additional consumers and potential partners. Obopay recently announced a watershed deal with Verizon Wireless that will equip Verizon Wireless subscribers with person-to-person money transfer capabilities.

For more on Obopay:
- read this press release

Related articles:
- Amp'd teams with Obopay
- Helio taps Obopay for mobile payments
- Obopay - Top Wireless Company 2007: FierceWireless, Fierce 15

Metric: Mobile payments to generate $22B by '11

Tue, 10 Jul 2007 06:59:54 -0400

According to a recent report from Juniper Research, 204 million mobile payment users will generate about $22 billion by 2011. Juniper predicts that person-to-person payments and near field communications (NFC) will drive the market. Current market barriers include resolving business model issues and revenue share issues, because financial institutions and carriers both want to own the relationship with the user.

"The business model still needs some work but there are positive signals emanating from the industry that will create considerable revenue for all parts of the ecosystem. I am cautiously optimistic for the future success of mobile payments," said the report's author, Juniper analyst Alan Goode.

For more on the study:
- read this article from VNUnet

Belgians claim "first secure" SMS payments service

Mon, 09 Apr 2007 20:01:34 -0400

Gemalto and Banksys have launched an SMS-powered mobile payments service in Belgium, which the companies say is the first ever secure SMS payment service. Banksys developed a technology, called a-banxafe, which works with every major bank in the country. Once a potential user signs up, he or she simply keys a payment request into their mobile phone, the payee receives payment details by SMS and accepts them using a PIN code. Once completed, both parties get confirmation via text. Activating the service requires a "3G" SIM card from Gemalto and a trip to the ATM to green light it. Belgian carrier Base is the first to sign up for the application.

For more on the mobile payments solution:
- see this article from The Inquirer

Visa invests in dotMobi for mobile payments

Tue, 27 Mar 2007 20:01:38 -0400

During this morning's keynote Visa president and CEO John Coghlan announced his company's plans for mobile financial services, partnerships with VeriSign and Ecrio and a strategic investment in the dotMobi initiative. Coghlan said the value proposition for mobile payments had four parts: These new services and devices will attract new wireless subscribers, expand existing relationships by driving ARPU, provide greater convenience for consumers and increase speeds of transactions.

The Visa mobile platform supports NFC point of sale purchases at stores and restaurants, mobile-to-mobile payments, banking services and ticketing or coupons through Ecrio. Visa made an undisclosed investment in the dotMobi initiative, which oversees a top level domain for websites tailored for the mobile browser. Coghlan also announced a deal with Kyocera for an NFC-enabled handset.

Coghlan also cited some interesting internal metrics surrounding mobile payments: 57 percent of consumers with a debit or credit card are interested in mobile payments; 90 percent of those interested in the service said they would pay more for a device with payment capabilities; 64 percent of 18 to 42-year-olds would consider switching carriers for to get mobile payment services and 58 percent of consumers in that age bracket would switch banks to do so. Perhaps most interestingly, by a measure of 5 to 1, those polled would prefer that payments appear on their credit card statement, rather than their mobile bills. That's one metric the carriers might cringe at.

Coghlan concluded: "The mobile device is simply the most promising new form of payment available today." -Brian

Commerce and other hot applications

Thu, 22 Mar 2007 09:29:05 -0400

We expect mobile payments to be a hot topic of discussion next week. Visa CEO and President John Philip Coglan is a keynote speaker and is expected to announce a partnership with one of the smaller handset makers. We expect Visa to launch a mobile payments initiative that will make different mobile payment applications, including smart posters, possible.

The mobile payment debate will also be the focus of a Mobile Payments World conference co-located with CTIA on Monday. Between the Visa keynote and Mobile Payments World, we expect to hear many discussions on whether mobile commerce will finally find a receptive audience in the U.S. after having such a slow start. Mobile device management will also factor into these discussions. Making sure a phone is secure and working correctly is critical to mobile payment’s success.

Also, look for push-to-talk to experience a slight resurgence next week. PTT was a hot topic a few years ago as non-iDEN network operators such as Verizon Wireless and Cingular raced to launch PTT service to compete with Nextel. PTT hasn’t garnered many headlines since 2005, but some operators are focusing more efforts on marketing their PTT service now that Sprint Nextel’s PTT service is languishing. –Brian

Obopay makes mobile payments kid-friendly

Tue, 20 Feb 2007 19:01:35 -0500

Obopay has launched a new "Sponsored Accounts" feature that will enable kids under 18 years of age to easily use its mobile payments application. The feature allows parents to provide their child with an Obopay account linked to his or her mobile phone, which the parents can track and control as they see fit. The new feature also kicks off a refer-a-friend initiative that gives account holders $5 for each successful referral.

For more on Obopay's kid-friendly initiative:
- see this press release

Trend: Mobile banking roundup from CES

Mon, 08 Jan 2007 19:01:34 -0500

One of the many trends coming out of the diaspora of CES is mobile payments and banking: Nokia unveiled a near-field communications handset, mFoundry released its mobile banking product mBanking, and Visa laid out its platform for mobile payments and banking. Here's a quick summary of each:

Nokia's 6131 NFC will enable info sharing, service initiation, payment and ticketing with one tap of the device. Article
mFoundry's mBanking platform can run on nearly 200 North American handsets, but only 120 of them will have the necessary security software to support full-service banking. Support for SMS, WAP, brokerage support, prepaid and stored-value management and peer-to-peer payments will all be introduced in 2007. Article
Visa's platform is a bit vague on the details, but its functions include: contactless mobile payment, OTA personalization, coupons and direct marketing. Release

RELEASE: Obopay receives strategic funding from Wolfensohn and Co.

Fri, 17 Nov 2006 11:35:05 -0500

Obopay Receives Investment From Global Financial Investment Firm Wolfensohn & Company, L.L.C.

Mobile Payments Leader Continues to Expand Consumer Marketing Efforts With New Add-On to Recent Round

REDWOOD CITY, Calif., Nov. 16 -- Obopay, the first comprehensive mobile payment service in the U.S., today announced it has received from Wolfensohn & Company, L.L.C. an add-on investment to the strategic round announced last September.

Obopay will leverage the additional investment to further expand its marketing and operations efforts to more quickly capitalize on the rapidly growing opportunity for mobile payments in the U.S. The company will continue to work closely with mobile operators, merchants and financial institutions to provide consumers with greater options and a seamless experience with the Obopay mobile payment service.

"To receive this kind of support from such a well-known financial leader and global player further validates our leadership in this rapidly growing market," said Carol L. Realini, CEO and founder of Obopay. "We are excited to be working with Wolfensohn & Company whose support and financial industry expertise will go a long way toward the widespread adoption of mobile payments."

With the Obopay mobile payment service, consumers can instantly get, send and spend money using their mobile handset. Obopay accounts can be managed completely from the mobile handset, allowing users to check their balances, request payments from other mobile users and view their transaction histories.

"Mobile phones will be to money what the iPod is to music," continued Realini. "And Obopay is doing much to turn that vision into reality by offering anyone with a mobile phone flexible, affordable, and instant access to money from the palm of their hand no matter where they are."

About Obopay

Obopay is the first complete mobile payment service in the U.S. that instantly lets consumers get, send and spend money directly from their mobile phones to anyone, anywhere, anytime. The Obopay management team is comprised of former executives from Visa International, Microsoft, Yahoo, Expedia, AT&T Wireless, Western Union, First Data Corporation, Norwest Bank and Chordiant Software. Obopay was founded in 2005 and is based in Redwood City, Calif. For more information, please visit www.obopay.com .

About Wolfensohn & Company, L.L.C.

Founded by James D. Wolfensohn in 2005, Wolfensohn & Company, L.L.C. is a private investment firm and an advisor to corporations and governments. Prior to founding Wolfensohn & Company, Mr. Wolfensohn was President of the World Bank Group from 1995 to 2005. Before joining the World Bank, Mr. Wolfensohn was President and Chief Executive Officer of James D. Wolfensohn Inc., an investment firm that advised major international and U.S. corporations.

SPOTLIGHT: EFF says TCG limits customer choice

Sun, 02 Oct 2005 20:01:25 -0400

The Electronic Frontier Foundation (EFF) said the TCG's recent list of phone security standards are designed to tighten vendor control over the use of cell phones. According to the EFF, the specifications will increase vendor control over digital rights management, device authentication, software downloads, mobile payments, and mobile ticketing. TCG says the standards are security measures, while the EFF claims they only curtail consumer choice. Article

SPOTLIGHT: Downloading not popular within mobile content industry

Wed, 14 Sep 2005 20:01:25 -0400

According to a survey by mobile payments firm Valista, 25 percent of those who work in the mobile content industry did not download mobile content in the last month. More than half of respondents had not downloaded mobile content in the last week and 14 percent of respondents had never downloaded mobile content. The survey sampled roughly 100 attendees at this week's Mobile Content World. Article