17 October 2017
Find out more

MasterCard and German telcos promise mass-market mobile payments

25 February 2014  |  5678 views  |  2 Frankfurt skykine 3

MasterCard is partnering with leading German telcos Deutsche Telekom, Telefónica Deutschland and Vodafone to develop a mass market mobile payments network covering 80% of handset-owners in the country.

Instead of connecting to individual mobile operators, issuing banks who sign up to the platform will connect to MasterCard's wholly-owned payments processor and Trusted Services Manager Trevica. In this way, banks can gain access to a number of mobile operators with a single integration effort.

Stefano Parisse, group director consumer services at Vodafone says: "We want to enable banks to reach more of their customers with secure NFC. By reducing the cost for banks to integrate and by reducing their time to market, we are confident that we have a model for Germany that will work around Europe."

Pawel Rychlinski, division president Germany and Switzerland at MasterCard, bills the partnership as a 'game-changer' in Germany that will be extended to more European countries during 2014.

"By bringing together the best in banking and mobile, we make mobile payments ubiquitous across all networks, just like messaging today," he says.

The plans are an improvement on the usual proprietary telco offerings to the banking industry, but may be too little and too late given the more attractive possibilities opened up to banks by the recent development of Host Card Emulation and cloud-based payments techniques.
KeywordsTELECOMMS

Comments: (2)

Alexander Peschkoff
Alexander Peschkoff - TEDIPAY - London | 25 February, 2014, 10:39

EMV should make up their mind: if SE-less HCE is fine, why bother with the operators (i.e. SIM cards)?.. After all, ISIS is not going anywhere fast in the US...

One can argue that not everyone has a smartphone, but is someone with a feature phone likely to be an early adopter of mobile payments? What about user experience (i.e. real-life performance of SIM-based NFC)?

 

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 February, 2014, 16:54

Integration effort/cost is one of the barriers to wider adoption. However, the main issue with the business model is still not addressed. Deployments and research so far show that consumers use NFC from factor for everyday small payments. The cost of processing small payments using debit anc credit card products is already too high (either loss for the banks, or fees too high for the merchants), so it is difficult to find room for revenue stream for mobile operators. Unless the cost is addressed with new processing models, NFC is struggle.

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

MasterCard adds in-app payments to MasterPass; buys m-wallet firm C-Sam

MasterCard adds in-app payments to MasterPass; buys m-wallet firm C-Sam

24 February 2014  |  9197 views  |  0 comments | 15 tweets | 18 linkedin
Visa and MasterCard to cut ties binding banks and telcos via Host Card Emulation

Visa and MasterCard to cut ties binding banks and telcos via Host Card Emulation

19 February 2014  |  19655 views  |  12 comments | 45 tweets | 52 linkedin
Volkswagen Bank and Visa Europe embark on NFC iPhone case pilot

Volkswagen Bank and Visa Europe embark on NFC iPhone case pilot

18 September 2013  |  7318 views  |  0 comments | 10 tweets | 6 linkedin
Hackers steal bank details of 2 million Vodafone Germany customers

Hackers steal bank details of 2 million Vodafone Germany customers

12 September 2013  |  10101 views  |  1 comments | 14 tweets | 16 linkedin
BNP Paribas launches digital mobile bank

BNP Paribas launches digital mobile bank

17 May 2013  |  12923 views  |  0 comments | 20 tweets | 15 linkedin
Telefónica brings mobile P2P and NFC payments to Germany

Telefónica brings mobile P2P and NFC payments to Germany

21 January 2013  |  9384 views  |  1 comments | 17 tweets | 10 linkedin
German co-operative banks trial mobile sticker technology

German co-operative banks trial mobile sticker technology

17 July 2012  |  6485 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.capgemini.comRegister now

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14793 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8141 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7462 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6763 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6106 views comments | 8 tweets | 16 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job