Contactless Smart Cards, RFID, Payment, Transit and Security

GSMA calls for pay-buy-mobile handsets

Tuesday, November 18, 2008

The Global System for Mobile communications Association, a mobile industry trade group, has called for full NFC functionality to be built into commercially available mobile handsets by mid-2009, so consumers can benefit from mobile payment services as soon as possible.


Meeting in Macau, China, the GSMA board endorsed the single wire protocol’ standard to provide the interface between the SIM card and the embedded NFC chipset. A series of operator trials under the GSMA’s Pay-Buy-Mobile’ initiative have already demonstrated that consumers can use NFC handsets to easily and securely pay for goods and services in shops, restaurants and train stations.

“There is no doubt that there is a huge latent demand for a large variety of mobile transaction services, of which there is universal interest in proximity payments, as trials across the world have already shown,” said Rob Conway, CEO of the GSMA. “We are committed to ensuring that mobile payment services are delivered as efficiently and cost effectively as possible. But this will require device manufacturers to make sure that the vast majority of commercially available handsets incorporate the single wire protocol and near field communications features as standard. Doing so would enable the industry to leverage significant economies of scale, and ensure greater accessibility of NFC services.”

This call for handsets is supported by recent operator trial results, which indicate a growing consumer demand for mobile payment services. Trials are underway across eight countries involving nine mobile operators as part of the GSMA’s Pay-Buy-Mobile initiative. Further pilots are planned across 14 countries by 15 mobile operators. [end] 

The GSM Association has announced that 45 of the world’s leading mobile operators have committed to supporting and implementing SIM-based NFC services.

Chief among these companies are China Mobile and China Unicom, which account for nearly 800 million subscribers throughout China. Other major operators include Deutsche Telekom, KT Corporation, Orange, SK Telecom, Telefónica, Telecom Italia, Turkcell, Verizon, and Vodafone. Click here for a full list.

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Visa, in partnership with Monitise, has launched a suite of new mobile financial services on its revamped Debit Processing Service platform, enabling mobile phone users to check their account history and balances, transfer funds between accounts, and receive real-time transaction alerts.

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Visa Europe has announced that NFC-enabled smart phones from Samsung, LG and Research In Motion have been certified for use with Visa payWave, Visa’s mobile application for payments at the point-of-sale.

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On Track Innovations has received a U.S. patent for adding contactless capability to existing mobile handsets through contactless SIM technology.

U.S. Patent No. 8,090,407, aka “Contactless Smart SIM,” covers the capabilities necessary to turn existing mobile handsets into NFC-enabled devices through the use of a SIM card and a specifically designed antenna, all while keeping the phone and operating system “fully agnostic,” says OTI.

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The European Payments Council (EPC) has published the second edition of its “White Paper on Mobile Payments.”

According to EPC, the white paper focuses on the usage of the mobile payments in the Single Euro Payments Area (SEPA) and explores how m-payment services can be delivered through cooperation between service providers in the payment industry and players within the mobile ecosystem.

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Proclaiming its entrance into the RFID space, Honeywell introduced part of a new product portfolio designed to bring efficiency to the retail industry, the Optimus 5900 RFID mobile computer.

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