A Finextra member 16 April, 2008, 14:43 0 likes Isn't there a potential problem with theft? Mobile phones are the most nickable items you can have on your person - in London anyhow.

A Finextra member 16 April, 2008, 15:24 0 likes

Theft of Phone is Not Theft of ID with the Right Methodology. 

The other advantage is the average time taken to notice a mobile phone missing is 6 minutes, as opposed to more than half a day for a card. Any other mobile phone will do as a replacement, rather than being issued with a card. One phone can only confirm one ID at a time, it would generally be limited to the owner or a family member if for a minor.

There are also ways to make the phone not only unusable, it could broadcast it's location and even if someone replaced the SIM the phone would secretly transmit the new number to the authorites/owner.

Aside from ID - the Theft Issue

Perhaps if mobiles were used for ID the government could pressure the Telco's to identify and block the stolen phones which are already on their network, approximately 10% of mobiles I believe, and possibly prevent new thefts. After all, they even know who owned them before they were 'lifted'.

The Telco's have the information  to do this, but probably figure that it means 10% more subscribers. One would have to bear that in mind when considering the ethics of a potential transaction partner.

There will of course always be 'rebirthing' of high end phone models. 

By the way I should clarify, that the mobile is used for ID not as ID. 

A Finextra member 16 April, 2008, 16:37 0 likes Ah well it was four hours in my case before I spotted the loss. Seem to remember I'd been drinking. Ahem. And it took forever to get replaced! 

A Finextra member 18 April, 2008, 08:32 0 likes A decent bank might courier you around a cheap $20 replacement mobile and you'd be back at the bar in no time.

A Finextra member 21 April, 2008, 15:56 0 likes

The mobile ID has actually been around some years already in the Nordics. Recently banks has gone together with mobile operators and put the ID into the SIM card.

Lost phones is course a problem but not more problematic than to loose other security devices. I will be back in business in three steps:

1. One phone call to block the SIM and ID
2. Buy a new phone (Which I pay myself).
3. Authenticate myself in the Internet Bank and go through the same online registration process as first time.

The problem here is not if this works or not. Finding business models for mobile operators and bank cooperation was the real challenging part.

A Finextra member 21 April, 2008, 18:54 0 likes

Exactly why you will fail in a global scenario. If you were a global bank or credit product would you want to deal with hundreds of telco's?

An alternative with no telco's in on the deal is bound to be a better business proposition.

The problem for the telco's is that they have to gang up to take on the banks at their own business or make the banks do a deal with them. If the banks were to gang up on the telco's who would win? If the bank gang didn't need co-operative telco's?

Congratulations on your good work Bjorn, but who are your potential competitors? Your system does not seem to be ideal from either a security or a cost standpoint, certainly not with what I can see.

Transaction fees will become very competitive soon and your model may not survive the shakeup. There is the added difficulty of international transactions and clearance, I could go on. Do a little simulation on credit and debit card fees being very substantially lower even cross-border, perhaps a fraction of the present price. Think 10-15 seconds from customer to merchant and their bank to bank - completed transactions.

Think micro-transactions. Think big. 

But perhaps you work for a telco...no telco has the means to win the big prize.

I quite confidently make that prediction. Perhaps the entire GSMA could do it with a lot of help and some of that help from a bank, but no telco alone, no matter how big. 

In case anyone hasn't thought about it, we will probably end up with one global currency. Guess what I think it'll be? Not overnight of course.

By the way - the success of mobile transactions does not sit with the telco, or the bank, but with the consumer and the merchant. Easier, safer, faster, cheaper wins every time. At least in our surveys.