Deutsche Telekom plans to launch “Mobile Wallet” in 2011
Feb 15, 2011
Mobile phone wallet (“Mobile Wallet”) for mobile payment, tickets and bonus programs
Planned market launch in Germany and Poland in 2011
Roll-Out in the US, The Netherlands and the Czech Republic in 2012
When Deutsche Telekom brings its “Mobile Wallet” to market in 2011, the cell phone will become a virtual wallet. In the future, Deutsche Telekom customers must simply hold their cell phones up to an appropriate reading device to pay for goods, buy tickets for events or regional passenger rail, or participate in bonus programs. A new technology – Near Field Communication (NFC) – makes this possible. No small change at ticket vending machines, and defective magnetic strips on cards both are a thing of the past.
To ensure the security of NFC services, Deutsche Telekom will introduce solutions based on international security standards for payment services. These are coordinated and protected across the device, to the SIM card and to the mobile transmission technology. Also, additional security functions will be included, for example, the locking of applications and data in case of mobile theft or loss.
“Mobile Wallet” will offer future services in the field of mobile payment both for Deutsche Telekom’s own services, as well as those of third parties, such as banks, transport companies and event organizers. Additionally, bonus systems dedicated to individual retailers can be stored in the “Mobile Wallet”.
In the development of contactless services, Deutsche Telekom pursues an international approach. Through Isis, a joint venture with AT&T and Verizon, Deutsche Telekom unlocks the potential for mobile payment in the USA. In Europe, it is planned to start the first NFC services on a common platform in Germany and Poland in 2011. In 2012, NFC services will be introduced in The Netherlands and the Czech Republic, and more countries will follow.
Payment Drives Growth
“The area of payment systems is a major driver of growth for Deutsche Telekom. We have continuously invested in this business, and will continue to expand it – nationally and internationally,” said Thomas Kiessling, Chief Product and Innovation Officer of Deutsche Telekom. After the acquisition of the Internet payment service company Firstgate with its Click & Buy brand in 2010, Deutsche Telekom will successively introduce a whole portfolio of innovative and competitive payment solutions for customers and retailers starting in 2011. Applications include paying over the Internet as well as remote and proximity mobile payment.
This means that new markets for additional services and business models are opening up for Deutsche Telekom. This offer fits into the “Telco Plus” strategy that was presented last year by CEO René Obermann. Thus NFC services allow Deutsche Telekom to develop new business models and generate additional revenue by doing business with third party service providers.
“Mobile payment systems have enormous future potential,” Kiessling added. “Not just mobile operators worldwide are working on solutions, but also Internet companies, banks and transportation companies. Customers, however, will not accept isolated solutions. They want to be able to pay as easily as they would in terms of cash or credit card. And with the “Mobile Wallet” we can offer our customers convenient and secure mobile payment.”
Deutsche Telekom is already working with other mobile operators such as Vodafone and O2 on the joint payment system mpass in Germany. The mobile phone wallet is being driven with various mobile operators and service providers in other European countries as well – a contact free ticket system for stadium access for the European Football Championship in 2012 is being planned. And in The Netherlands, Deutsche Telekom is cooperating with two mobile operators and three banks to bring a joint solution for mobile payment to market.
In the Deutsche Telekom marquee at Mobile World Congress 2011, guests can experience a contact free service demonstration developed in cooperation with Samsung.