Ericsson introduces new mobile money product in Europe
Another player is entering the mobile payments game. Ericsson Money Services, a subsidiary of Swedish telecommunications company Ericsson Group, announced its new mobile money product for consumers in Europe. Ericsson Money allows customers to send and receive funds from prepaid accounts via their mobile phones using SMS text messages.
"To Ericsson, it's logical that as connected consumers in every other part of our lives we should have the same freedom of choice, access and availability in our financial lives," said Semir Mahjoub, Ericsson vice president and president of Ericsson Money Services, in the announcement. "Simply having a friend's phone number, irrespective of where he or she is in the world, will open up access to financial services and mobile money in a new way."
Ericsson Money is available immediately to mobile phone users in seven European countries: the U.K., France, Germany, Italy, Spain, Poland and Sweden. Ericsson said its new service is only the first step in its plans to offer mobile financial solutions globally. It is looking to expand Ericsson Money to the rest of Europe soon and is looking to include bill payments, online shopping and paying at retail locations with its money transfer services.
"It's an exciting time for a new industry, and we are really looking forward to accelerating the pace at which individuals around the world can benefit from globally-connected money services in their everyday lives by making money transfer more like mobile communication," said Mahjoub.
To use the new service, consumers must first set up a mobile wallet through Ericsson Money's website. The wallet account can be loaded using Visa and MasterCard branded debit and credit cards, or through a bank transfer. The Ericsson Money website says that eventually consumers will be able to load mobile wallet accounts using cash through network partners
There are small costs associated with funding Ericsson Money accounts. There will also be a cost to send funds based upon where the receiver is located. However, the Ericsson Money website says fees will be waived for now to encourage people to use the new service.