Japanese operator finally launches true mobile wallet service
April 28, 2005 - source: BWCS
Following its recent foray into the travel-cards-in-phones business, NTT DoCoMo has joined with Sumitomo Mitsui Financial Group, Inc, Sumitomo Mitsui Card Co, Ltd. and Sumitomo Mitsui Banking Corporation to launch its fully-fledged mobile wallet service. The new system will enable Japanese mobile users to pay for goods and services at retail outlets by waving their mobile phone in front of a specially adapted RF reader.
Japan's major mobile operator plans to pour Yen100 billion (US$945 million) into the venture and will acquire 34% of the shares in Sumitomo Mitsui Card. DoCoMo says it will introduce a new brand for the service, whose platform will be jointly developed by the operator and Sumitomo Mitsui Card.
At the time of the service launch, DoCoMo will issue a new, conventional, plastic credit card that can be used in conjunction with the Sumitomo Mitsui Card. This card will carry an internationally recognized brand.
Sumitomo Mitsui Card says it will use its expertise as a general credit card company to establish the necessary infrastructure to enable the mobile credit-card payment system to spread across Japan. This will include the installation of terminals at member retail shops nationwide to enable customers to make payments with their so-called mobile-wallet handsets. In addition SMC says it will promote mobile-wallet services by merging them with existing services.
The companies hope to build on the experiences DoCoMo is gaining in this sector through its recently announced collaboration with East Japan Railways and Sony Corp. In February of this year, the trio announced the launch of a new mobile proximity payment service that will enable Japanese commuters to use their mobile phones to pay for tickets on the hugely popular commuter services offered by the rail company.
Currently around 10 million travelers regularly use the Suica contactless payment cards which East Japan Railways introduced some three years ago. Suica uses Sony's Felica integrated chips. Until recently however, the Suica system, which also allows users to pay for goods and newspapers at many stores, had not been fitted into mobile phones.
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