Mobile payments becoming a reality
21 June, 2007
category: Contactless, Financial, Transit
The United States is beginning to open its doors to mobile phone payments. Verizon Wireless recently announced the launch of a m-payment application supported by one of their technology partners Obopay. The Strategy Analytics Wireless Media Strategies team is supportive of Verizon’s descision to expand the utility of mobile phones. Mobile payments and mobile commerce applications have been in use for several years, with pioneering approaches in Japan and Korea enabling cashless transactions for train tickets, taxis, soda machines, parking meters and even restaurant bills. Verizon is expectedhopes to to capture the minds of the digital youth and early career segments within the US with their new e-wallet. SprintNextel as well as GSM leader, AT&T, are sure to follow suit.
Leave The Cash At Home – Obopay Will Give Verizon Wireless Subscribers The Option To Shop With Their Phones
Obopay is the First Mobile Payments Service that will be Offered by a Major Carrier
REDWOOD CITY, CA, and BASKING RIDGE, NJ — Verizon Wireless customers will soon have another option when they shop other than just cash or credit – they will be able to pay using their wireless phones. Obopay, the first comprehensive mobile payment service in the U.S., today announced with Verizon Wireless, the leading wireless company with the most reliable voice and data network, they plan to make Obopay’s services available to Verizon Wireless customers in the coming weeks. Obopay is the first mobile payment offering for any major U.S. carrier, and it will allow Verizon Wireless customers to make purchases easily and directly from their mobile phones.
The Obopay service allows users to receive, send and spend money instantly and effortlessly via their mobile phones – whether shopping at their favorite store, going to the movies or dining with friends. Users can immediately access their mobile money using an Obopay prepaid MasterCard®, which can be used at any ATM or retail outlet that accepts credit cards. With Obopay’s user-friendly features, users can also check their account balances, collect money owed from other mobile users, view transaction histories, and invite friends to use the service.
“After a series of industry-firsts, Obopay has once again shown unrivaled leadership by working toward making its services available on the Verizon Wireless network,” said Obopay chief executive officer, Carol L. Realini. “We look forward to working with Verizon Wireless to deliver our mobile payments services to its customers.”
Obopay will initially run on Verizon Wireless mobile phones as a BREW® application that can be downloaded from the Verizon Wireless Get It Now® online catalog. After downloading the application, users will be able to sign up for the service directly from their Verizon Wireless mobile devices or at www.obopay.com. Signing up friends will be easy – users simply send cash to prompt others to sign up or issue mobile alert invites. The service will also be made available as part of Verizon Wireless’ Mobile Web 2.0SM service. Download charges for Get It Now applications vary and airtime charges apply when browsing, downloading and using certain applications. Customers need a Get It Now-enabled handset and Verizon Wireless digital service to access the Get It Now virtual store.
For more information about Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to www.verizonwireless.com.
About Verizon Wireless
Verizon Wireless operates the nation’s most reliable wireless voice and data network, serving 60.7 million customers. The largest US wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, N.J., with 66,000 employees nationwide. The company is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
About Obopay
Obopay, Inc. (www.obopay.com) is the leading service provider for payments over mobile phones. Obopay delivers instant and effortless payment solutions that allow consumers, merchants, banks and carriers to easily embrace the power and convenience of instant mobile payments.
Strategy Analytics: M-Payment Bright Future
Verizon Wireless Leads as US Market Follows Japan and Korea to Mobile Wallet
BOSTON–The Strategy Analytics Wireless Media Strategies team applauds the decision by Verizon Wireless to expand the utility of mobile phones with today’s announcement of an m-payment service enabled as a BREW application from technology partner Obopay.
Mobile payments and mobile commerce applications have been in use for several years, with pioneering approaches from Japan and Korea enabling cashless transactions for train tickets, taxis, soda machines, parking meters and even restaurant bills.
Phil Taylor, Director of the Wireless Media Strategies Service, commented, “In our December 2006 report, we predicted significant activity in the form of payment and ticketing trials towards the end of 2007 and maintain our projected outlook of $36 billion in spending via contactless payment interfaces on mobile phones by 2011. Today’s announcement confirms our belief that significant momentum will develop as other US and international operators jump on the m-payment bandwagon.”
David Kerr, Vice President of the Global Wireless Practice, added, “Verizon Wireless is a trusted brand known for reliability, quality and customer service. Expanding the domain of influence for mobiles beyond voice, SMS and multimedia content is a natural step given their ubiquitous presence in the US. Boasting industry-leading churn levels and a strong stable of innovative offerings from enterprise solutions to Vcast TV to Vcast Music, Verizon Wireless is well-positioned to capture the e-wallet, as well as the minds of the digital youth and early career segments in the US. SprintNextel, which has forged a more positive approach to mobile advertising and alternative network technologies (e.g. WiMax), is sure to follow suit, while GSM leader, AT&T, has a massive national advertising budget and trusted audience who may be receptive to m-payments.
About Strategy Analytics
Strategy Analytics focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless and Intelligent Systems Implementation Strategies. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics offers annual multi-client services, management team workshops and custom consulting engagements.
