Competing German carriers want an mpass
German wireless companies Telefónica Germany, Telekom and Vodafone announced they have signed a letter of understanding to move forward with an NFC mobile payment venture. The new joint venture will be called mpass and may begin operations later this year, the companies said in an announcement.
According to the announcement of the new JV, mpass will concentrate on distribution and marketing activities, as well as developing new products.
"Payment by mobile phone will increasingly feature in our daily lives," said Telefónica Germany Managing Director Michiel van Eldik in the statement. "It has actually been possible for several years. And the first NFC smartphones, with full functionality for all aspects of credit and bonus cards, are already in the stores. I think that even as early as next year, consumers will be leaving their credit cards at home and paying by mobile phone instead."
The mpass JV looks very similar to the Isis network in the U.S. and several other ventures launched by competing wireless carriers in various European countries. Similar ventures have been started by wireless competitors in France and Italy to kick start mobile payments and set standards by pooling resources and subscribers.
"Within the mpass partnership we are not only applying the specific benefits of mobile phones in the payment market," said Christian Illek, director of marketing at Telekom Deutschland, in the announcement, "but, more importantly, we are bundling our customer reach with that of our partners."
"For many years now we have offered an interoperable payment product across all networks with payments via the phone bill," added Dr. Peter Walz, member of the management board and director of wholesale & strategy for Vodafone Deutschland. He said retailers want standardized mobile payment solutions.