Visa has launched a mobile platform for testing new
applications that will open the way to make payments using a mobile
phone or similar device.
Once established, the technology could give businesses a new
e-commerce channel in which to sell goods and services securely and
conveniently.
Patrick Gauthier, senior vice-president for innovation at
Visa International, said mobile payment had
been made possible by the advent of 3G networks and smartphones,
and is already partially in use, as smartphone users can use web
browsers on their phones to make payments.
But Gauthier said that, in most cases, "The experience for the
cardholder is not convenient and [such methods of payment] have not
been optimised for security."
He said Visa would start testing and running pilot roll outs
with mobile providers in 2007.
"The key to mobile payment is to have an environment with a
consistent payment mechanism, which offers simplicity, convenience
and security," he said.
To this end, Visa has created a platform comprising technology
tools and applications, security standards, and business models to
enable Visa issuers and mobile operators to run trials and
commercialise mobile payment services.
The platform has been developed in partnership with Nokia, IBM,
Verisign, Inside Contactless, ViVOtech and mFormation
Technologies.
The initial version is designed to support contactless mobile
payment, where the device is placed near a reader, similar to the
way an Oyster card is used to pay for public transport in
London.
Later this year the platform is expected to be updated to
support more sophisticated services such as account management
services.
Mary Ann O'Loughlin, senior vice-president of consumer practice
at Ovum, said Visa was "leading the charge to simplify and
jump-start the development of innovative mobile payment
services".
But others warned that hurdles still remain. Analyst group
Datamonitor said the success of mobile payments depends on
interoperability between mobile operators. "There are few signs
that this has happened on a large scale. This remains a key barrier
to the take-up of mobile payments, and casts doubt on the business
case," it warned.
Visa and Apacs grilled over online crime
M-payment circus rolls into town
Comment on this article:
computer.weekly@rbi.co.uk