New Zealand mobile operators join effort to bring mobile payments to market
Posted on 2-Apr-2012 10:42
| Filed under: News
Paymark, Vodafone New Zealand, 2degrees and Telecom New Zealand today announced plans to bring the future of mobile payment services to New Zealand.
The four companies intend to form a joint venture to launch a trusted service manager (TSM) which will allow New Zealanders to make secure payments, collect loyalty points and use public transport with their mobile phones.
This initiative will create the infrastructure necessary to enable many of the cards held in a wallet today � bank cards, loyalty cards or transport tickets � to be replaced by applications securely stored in a virtual wallet on a mobile phone.
The service will use near-field communications (NFC) technology, which is the global standard for this type of function, to enable the secure transfer of information stored on the customer�s phone to a retailer�s EFTPOS terminal.
At the check out, customers will be able to make payments by simply holding their mobile phone within a couple of centimeters of an NFC enabled payment terminal. The mobile phone communicates remotely over this small distance directly with the NFC reader to complete a transaction. The payment software is located in a secure part of the customer�s phone and the payment transaction is sent over the banking network the same way it is today.
This landmark collaboration between two significant NZ business sectors will bring together the expertise and technology of New Zealand mobile network operators with payments provider, Paymark.
This collaborative approach to developing the NFC ecosystem will mean quicker development of new and innovative services delivered in a seamless way to customers, while lowering costs and simplifying the process for merchants. New Zealand�s payments industry has a history of successfully building shared infrastructure through collaboration, and this new joint venture plans to emulate that success for the next generation of technology.
Paymark CEO, Simon Tong, says the collaboration between Paymark, Vodafone New Zealand, 2degrees and Telecom New Zealand will result in an effective infrastructure that will benefit all New Zealanders.
�It�s the first time this particular mix of organisations has come together to provide a centralised TSM which will offer world-class, yet low-cost infrastructure � something New Zealand is well-known for around the world. Our priority is to ensure that the technology adheres to the most rigorous global standards so that customers have a great and safe experience with the applications provisioned using the technology,� says Simon Tong.
Based on the collaboration of the four parties, the aim is to create an ecosystem open to all, where banks, mobile operators and others such as loyalty schemes, transport companies etc can take part. The TSM is being built with the intention of providing one, open-access, solution for the New Zealand market, to help encourage wide-spread consumer uptake and avoid customer confusion.
In the telco space, Telecom, Vodafone and 2degrees will continue to compete vigorously for customers by developing their own innovative services on top of the open platform infrastructure provided by the TSM.