HOW DOES IT WORK?
Payment via mobile phone is particularly developed in countries such as Japan and Korea. Europe and the U.S., compared with Southeast Asia, are very late. The issue is not the number of users. The mobile phone penetration inEurope is the highest in the world. It is therefore surprising that efforts to pay over the phone are taking so long.
Once implanted in a country, the payment system via mobile phones has many uses: it can be used to pay at the corner store in an Internet commerce or service station, also in the drinks machine in the office, in the meter, on the bus, and may even pay taxes or lottery bet early.
HOWDO MOBILE PAYMENTS WORK?
If you are going to charge the phone bill, would be sufficient to contact the operating company gives telephone service to discharge the system. Once the phone is enabled to make payments, the user can for example buy drinks in a vending machine.
PingPing and Coca-Cola Enterprises have concluded a partnership agreement on Near Field Communication (NFC) for Belgium andthe Grand Duchy of Luxembourg. After launching a pilot project in April 2009, the two companies concluded a partnership agreement to equip 5,000 automatic vending machines in those countries with the PingPing payment solution.
Implementing the machines with a compatible NFC reader will start at the end of 2010. This will make Belgium the first European country to be equipped with a contactlesspayment solution.
To buy a cold beverage, customers will simply hold their tag (a sticker on their mobile phone) or PingPing card in front of the machine’s reader. If everything works correctly, the confirmation of payment will appear. The exchange of messages between the telephone operator and telephone customer uses the USSD protocol, similar to SMS messages, but more secure and instant. Themessages are not stored, and cannot reach someone by mistake. In the near future, the NFC technology used by PingPing will be directly integrated into mobile phones via the SIM card.
Stijn Vander Plaetse, vice president of Innovation at Belgacom (News - Alert), said, "After the success of contactless payment in the mobility field, this partnership with the major player in the beverage sector againdemonstrates the soundness of our innovative strategy which aims to transform the mobile phone into an electronic wallet. We are convinced that PingPing can offer a simple, efficient solution for small, daily purchases."
TOO MANY CONDITIONS?
All these operations require a commercialagreement with the telephone operator and the company that offers the payment system (credit card). To make matters worse, the service user charges a fee for each transaction. Also, if the charge is charged to the credit card, the payment media entities charged the commission usual, which does not exactly help the implementation of these systems
WHERE DOES IT WORK?
Mobile phone payments are commonpractice in Southeast Asia. Thanks to the market of credit cards were not much implemented, and a culture very interested in new technologies.
The Japanese operator NTT DoCoMo is known for delivering the most advanced mobile services in the world. Just five years ago, while in Europe began to talk about the third generation of mobile phones in Japan iMode system already had millions of customerswho enjoy their mobile high-speed Internet, video games, transfer photos, personal contacts and videoconferencing.
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