Vodafone and T-Mobile hope that other operators will join the system to make it interoperable among networks. Vodafone is the world's largest mobile operator with over 100 million customers in 28 countries. T-Mobile, another leader in the GSM market, is owned by Deutsche Telekom and recently acquired US players VoiceStream and Powertel.
The new payment scheme aims to deliver a secure and easy-to-use payment solution for the purchase of goods and services via a mobile device. Wireless customers simply store their personal details and preferred payment options in a virtual wallet, and then choose which payment instrument they wish to use when making payments via their mobile phone, similar to undertaking a transaction from a conventional wallet.
Multiple payment options will be available including traditional credit and debit cards, making transactions possible with any participating merchant of the scheme. It is also possible, as part of this scheme, that smaller purchases will be billed direct either to the customer's bill, by pre-paid top-up card or using other micro payment mechanisms. The aim of the scheme is to provide an end-to-end experience that is convenient, secure, user-friendly and trustworthy.
Thomas Geitner, Chief Executive, Global Products and Services, Vodafone, said:
"An open, interoperable platform for mobile payments will be a significant enabler of m-commerce, enhancing the array of content, services and commerce options available to customers. Our goal is to bring additional value to customers by turning their mobile phones into convenient wallets. We believe mobile customers should be able to use their devices as a payment tool, much as they use their credit or debit cards or cash today."
Nikesh Arora of T-Mobile added:
"We see a global vision to make the mobile device multifunctional, a phone 'too' approach - consumers using their devices for phone calls, as a games console, a messaging terminal or a virtual wallet."