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Netherlands to have mobile payment system by 2012

Consumers in the Netherlands will be using smartphones as mobile wallets within two years as result of a joint venture between top banks and mobile operators.

By 2012, it should be possible to pay for items at store checkouts, vending machines, parking meters and train stations by holding a mobile phone over a point-of-sale window that will transmit payment wirelessly.

Dutch banks ABN Amro, Rabobank, and ING have teamed up with mobile operators Royal KPN NV, Vodafone Group PLC and Deutsche Telekom's T-Mobile to offer the mobile payment service, the first of its kind in Europe, the firms said Thursday.

The six companies are in the process of setting up a joint venture to ensure the feasibility and the security of the mobile payment system, ING spokeswoman Marie-Louise Oster-Mazel told Dow Jones Newswires Thursday. She said details still need to be finalized and users may still have to authenticate their purchase with a numerical code.

The mobile payment service is based on contactless near-field communication, or NFC, a global standard that allows the transmission of high frequencies over short distances.

Phone makers and operators are extending the range of services they offer as they take advantage of explosive growth in data traffic and move away from traditional voice services where revenue has stalled. Nokia Corp. is set to release NFC-enabled handsets next year, while Apple Inc. has sought various patents related to mobile payments and digital-wallet technology. Internet giant Google Inc., through its Android operating system for mobile phones and its Checkout online-payment service, is also moving into the space.

NFC-based mobile payments are already in use in Japan and South Korea, and are currently being explored by AT&T, Verizon Wireless, the joint venture between Verizon Communications Inc. and Vodafone, and T-Mobile in the U.S.

Источник: Total Telecom

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