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An article relating to this blog post on Finextra:

Banksys teams with telcos to launch m-payments platform in Belgium

Belgian payments network Banksys is teaming with wireless network operators Base, Mobistar and Proximus to launch a system for consumers to pay for high street purchases via mobile phone rather than b...


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Time trials tax Banksys m-pay programme

For merchants and consumers alike, speed of throughput at the check-out remains the primary incentive for uptake of a new payments format.

This is why SMS-based mobile phone payment programmes such as that promoted by Belgium’s Banksys and wireless operators Base, Mobistar and Proximus, will never make the cut.

It may be cool and funky to pay by cellphone, but consider the long-winded transactional requirements: “Customers using the service will receive an SMS outlining details of a transaction from the merchant. The customer then confirms the payment using a password. Both the merchant and customer receive a text message confirming the transaction.”

Reports back from the early tests suggest an 18-second transaction time. 18 seconds!

NFC-based contactless smartcards such as MasterCard PayPass have succeeded in making inroads at the cash register because of their simplicity and convenience when compared to conventional cash and plastic.

Time trials of contactless technology conducted by Royal Bank of Scotland in Edinburgh found that Maestro PayPass could halve the time taken for a cash transaction, making a payment possible in less than five seconds.

MasterCard - and others - are also looking to embed the wallet app into NFC-equipped mobile devices. See this announcement by Cellular South and Kyocera Wireless of a multi-city trial of technology that enables users to make payments and purchases by simply tapping their mobiles against an NFC-enabled wireless reader

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Comments: (2)

A Finextra member
A Finextra member 03 April, 2007, 14:51Be the first to give this comment the thumbs up 0 likes

Mobile payment transactions on Celpay payment infrastructure in the DRC completes in less than five seconds. It seems that the design of the Banksys system must be considered. Furthermore, mobile payment solutions should rather be utilised in instances where a Point of Sale is not present - like a Person to Person payment, or remote payments, or informal vendors/merchants etc.

Paul Penrose
Paul Penrose - Finextra - London 05 April, 2007, 17:42Be the first to give this comment the thumbs up 0 likes Person-to-person payments via mobile phones would indeed be a killer app. Citibank is partnering with Obopay to trial just such a system in the US. It will be interesting to monitor their experiences.
Paul Penrose

Paul Penrose

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Finextra

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Futuristic Banking

Stuff that's out there in the way out and beyond in banking.


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