DnB Nor and Telenor form mobile payments unit

DnB Nor and Telenor form mobile payments unit

Norwegian banking group DnB Nor and local telco Telenor have disclosed plans to establish a mobile payments venture.

The new mobile payments venture, called Trusted Service Manager (TSM) Nordic, will be a subsidiary of Doorstep - a joint venture owned 50/50 by DnB Nor and Telenor.

The new company will distribute and maintain payment cards and tickets in handsets on behalf of issuers and in cooperation with mobile operators as well as "look into business opportunities", say the partners.

The move comes at the same time as a public trial of near field communications (NFC)-based contactless mobile payments technology by DnB Nor, Telenor and MasterCard.

The pilot utilises MasterCard's PayPass contactless technology, which will enable customers to pay for low value purchases at certain retailers in Oslo city centre by tapping their handsets on a specially-equipped terminal. Customers are also able to pay for and store travel tickets using their handsets.

DnB Nor's Bent Bentsen will become general manager of the company while Hanne Sjursen at Telenor will take on the role of chairman of the board of directors.

"Through the establishment of TSM Nordic, DnB Nor and Telenor demonstrate their interest in securing a position in the market for payment solutions based on new, contactless technology," says Sjursen.

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