24 May 2017
Find out more

Dutch banks and telcos disband mobile wallet joint venture

19 July 2012  |  10857 views  |  2 D600 mobile

Dutch banks and telcos have called time on a joint venture established to introduce a national mobile wallet service.

In a statement released Thursday, ABN Amro, ING, KPN, Rabobank and Vodafone say the initial project plans proved "too costly and too long" to implement.

"Developments in the market now offer capabilities that obviate the need to jointly develop a new business focus," the statement reads.

Initially slated for introduction in 2012, the scheme envisaged the use of NFC-based contactless technology and payment software located in a secure part of the SIM-card in the user's phone.

Last year the consortium, dubbed Sixpack, set back their planned launch date until 2013 as they awaited the outcome of a European Commission investigation into Project Oscar, the proposed mobile payments JV from a group of UK telcos.

In disbanding the scheme, the project partners say they intend to engage in looser bilateral agreements that will be quicker to market. "The first priority remains the introduction of pay at the checkout with the mobile phone," the statement concludes.

Comments: (2)

A Finextra member
A Finextra member | 23 July, 2012, 12:28

"The first priority remains the introduction of pay at the checkout with the mobile phone,"

So that means back to the partnering with the card issuers and using the existing transaction capture/processing rails, putting an Operator branding on the service and maybe adding an Operator Wallet.  Its very hard to improve on the cost dynamics that the incuments enjoy.  iZettle and Square are truly disruptive attempts to do it.  Banks do a good job at protecting their business (for which they have a government issued license) and Operators remain cautious about competing directly with that, since they are also trading partners, let alone the risk management commitment they could get into. 

But micro-billing, under the 20Euro level of transaction, is perfect to add to the Operator Bill rather than from a Credit Card.  Both sources need to be replenished from a bank account (or could be PrePaid), and is good for the un(der)banked consumer.

So - expect a lot of Mobile Operator Wallets to enter and compete with Google, PayPal Mobile, Amex, PingIt etc etc, and for those other wallets to be topped up by Carrier Bill as an option to Credit/Bank.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 25 July, 2012, 14:26

Surely, it isn't as simple as allowing payments up to €20 to go on customer's mobile bill. There is the whole trust issue (do people really trust the MNOs to handle payments) and there will also be a requirement for a fairly substantial dispute resolution process, which the MNOs will need to deploy and which will be more complex given the large number of pre-paid, non-account customers. It will be interesting to see how it develops.

Secondly, does anyone really want a mobile wallet rather than a central wallet accessed via their mobile, as per the existing payment scheme approach.

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EC opens 'in-depth investigation' into UK telcos' mobile wallet plans

EC opens 'in-depth investigation' into UK telcos' mobile wallet plans

13 April 2012  |  8900 views  |  0 comments
UK telcos submit mobile wallet proposals to EU competition authorities

UK telcos submit mobile wallet proposals to EU competition authorities

08 March 2012  |  10759 views  |  0 comments
Belgian m-payments project killed off

Belgian m-payments project killed off

24 February 2012  |  9078 views  |  0 comments
Banks and telcos to debate mobile financial future

Banks and telcos to debate mobile financial future

17 February 2012  |  10813 views  |  0 comments
Dutch banks and telcos push NFC m-payments back to 2013

Dutch banks and telcos push NFC m-payments back to 2013

02 December 2011  |  8111 views  |  1 comments
Swedish telcos form m-payments JV

Swedish telcos form m-payments JV

18 November 2011  |  7919 views  |  0 comments
Hungarian mobile wallet association established

Hungarian mobile wallet association established

26 July 2011  |  8396 views  |  0 comments
French telcos form e-payment JV

French telcos form e-payment JV

03 February 2011  |  11167 views  |  0 comments
Dutch banks and mobile operators form national m-payments consortium

Dutch banks and mobile operators form national m-payments consortium

09 September 2010  |  13787 views  |  0 comments

Related company news

 

Related company information

ABN Amro

Related blogs

Create a blog about this story (membership required)
Visit www.capgemini.com/worldreportsDownload the paper nowvisit www.response.ncr.com

Top topics

Most viewed Most shared
Google and PayPal partner for mobile shopping by fingerprintGoogle and PayPal partner for mobile shopp...
8935 views comments | 27 tweets | 28 linkedin
Time for data-driven banking to come of ageTime for data-driven banking to come of ag...
8880 views comments | 29 tweets | 35 linkedin
Banks must get on AI bandwagon now – new Finextra researchBanks must get on AI bandwagon now – new F...
8772 views comments | 22 tweets | 31 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
8695 views comments | 21 tweets | 24 linkedin
hands typing furiouslyOpen APIs - Leveraging Banking As a Servic...
6754 views 1 | 8 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job