Nokia invests in Obopay

Nokia invests in Obopay

California-based m-payments outfit Obopay has received a major investment from mobile phone giant Nokia, which it will use to move into new markets.

The size of the minority investment has not been revealed but is believed to be around $70 million. Teppo Paavola, head of corporate business development at Nokia has also joined the Obopay board of directors.

Obopay says it will use the Nokia investment to aggressively extend its product suite and enhance its global presence.

The firm launched its mobile payments service in the US in 2006. Subscribers to the service can check their account balances, collect money owed from other mobile users, view transaction histories and invite friends to use the service.

It has since sought to enter other, developing, markets, moving into India last year and teaming with microfinance pioneer Grameen to launch an initiative that aims to use mobile technology to deliver banking services to a billion of the world's poorest people by 2018.

Teppo Paavola, says: "This investment reflects our belief in the global potential for mobile payments. Obopay has consistently demonstrated its ability to redefine how people spend and send money and has established itself as the leader in a competitive landscape."

"This investment is a landmark in the evolution of mobile payments. It underscores the global potential of mobile money by providing convenient access to money anytime, anywhere," adds Carol Realini, CEO, Obopay.

Previous firms to invest in Obopay include Citi, Societe Generale, Essar, Alliance Bernstein, Onset Ventures, Redpoint Ventures, Richmond Management, Qualcomm and Promethean India.

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