The GSMA is asking for full NFC functionality to be built into
mobile handsets by mid-2009. They want to make sure that consumers can benefit from mobile payment services as soon as possible.
At the GSMA's Board meeting this week in Macau, China they saw the need for the ETSI endorsed 'Single Wire Protocol'
standard to provide the interface between the Universal Integrated
Circuit Card (UICC, or SIM card) and the embedded NFC chipset within
the handset.
The NFC chip communicates with existing contactless
readers to deliver a secure credit or debit payments along with other services.
A series of
operator trials - under the GSMA's 'Pay-Buy-Mobile' initiative - showed that consumers can use UICC-based NFC handsets to quickly,
easily and securely pay for goods and services in shops, restaurants
and train stations.
Rob Conway, CEO of the GSMA, said, "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. 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
for mobile users, added Conway."
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.
In Taiwan, in a trial of over 200 users, FarEasTone found that 90%
of people felt positive toward to this new service. 80% of people were
satisfied that the service is secure, and 40% said they would switch
their monthly spending to a mobile credit card service.
Seven banks and four mobile operators - including Orange and SFR -
involved in the "Payez Mobile" trial in France have announced the
results of trials conducted with almost 500 sales outlets and nearly
1000 triallists. Over 90% of triallists said they found contactless
mobile payment convenient, fast, and easy to use. In addition, 94%
declared that they would recommend it to their friends and family.
Merchants welcomed the possibility of offering to their customers an
innovative payment solution, with over 80% saying they appreciated the
speed and cutting-edge appeal of mobile contactless payment.
Equally, in Korea, SKT and KTF found that m-transportation was very
popular with users, and this is likely to translate to other mobile
payment services. Approximately 450,000 users of the "T-money" service
were quick to adopt the service as it is convenient and compatible with
existing readers. According to KTF's survey, 85% of m-transportation
users indicated satisfaction levels were 'very high'. 85% of them
believe that using a contactless mobile phone is much more convenient
than getting their wallet out to use public transportation, and would
continue to use the mobile service. "T-money" attracts users not only
for the public metro and bus, but also for small transactions such as
buying goods from convenient stores by simply tapping on the
contactless readers.
In July the GSMA on behalf of operators issued a detailed Device
Requirement** document to a wide range of vendors and suppliers in the
'Pay-Buy-Mobile' ecosystem. 37 key players responded, giving a clear
picture of the core requirements for any SWP/NFC device.