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 enable contactless payments using a mobile phone. Consumers will be able to use their handsets to 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 European Telecommunications Standards Institute (ETSI) as a standard in October 2007, 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 mobile operators with 1.3 billion customers participating in the initiative. 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.
