Nokia is teaming with German smart card manufacturer Giesecke & Devrient (G&D) to form a joint venture that will develop secure contactless mobile payment applications.
The joint venture will focus on developing applications for use with near field communication (NFC) technology, which enables secure, short-range communication between electronic devices, such as mobile phones, computers and payments terminals via a wireless connection.
Under the deal G&D will take a 57% stake in the new company, with Nokia holding the remaining 43% share.
Nokia says the JV will develop, implement and operate an 'over-the-air' platform to manage transactions made with NFC-enabled devices. The service platform will be operated on a white-label basis and will include interfaces to m-commerce providers.
The companies say the platform will allow firms - such as mobile operators, transport operators, retailers, banks and credit card companies - to offer their services and applications to consumers' that have NFC-enabled mobile phones.
Dieter May, vice president and head of Nokia's ventures organisation, says: "The new company will play an important role, as its services will be available to all stakeholders looking to introduce NFC enabled mobile services to their customers in an easy-to-use and secure way."
The new venture is expected to commence operations in the fourth quarter 2006.