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News
Issue #2002 - 19
(May 2002)
(Updated May
22, 2002)
TECHNOLOGY
German Banks Suspicious of Mobile
Payment
Even though mobile payments
are expected to play a huge role in the emerging mobile
Internet-based services market, German banks are reluctant to
closely align themselves with mobile operators, according to a study
published by German management firm Mummert & Partner.
Of the 100 banks surveyed, only 28 said they intend to co-operate
with mobile operators within the next three years.
Currently, operators bill customers for phone usage via the SIM
chip. Some operators are also dipping into mobile commerce, allowing
customers to purchase products and services via their phone. All
charges appear on the customer’s phone bill.
Convenience is at the heart of mobile commerce; so operators are
eager to offer customers the ability to direct mobile payments for
goods and services to their credit card number or bank card number.
Essentially, mobile operators want to see a credit card feature
integrated in the SIM.
But operators are meeting resistance from the vast majority of
banks, according to Rohland Heintz, a spokesman for Mummert &
Partner. "The banks are very protective of their debit and
credit card business and are worried that mobile operators could
take ownership of their customers," he told CW360°.
Bankers want to see mobile devices equipped with a slot to slide
credit cards through, similar to most retail credit/debit card
equipment used today.
Most German mobile operators agree that if the banks wouldn’t
cooperate, they will bet them on their own turf by establishing
their own financial services.
Perhaps the banks will reconsider their position when they read
that of the 11,000 end users surveyed, about 70 percent said they
would use their mobile phones to pay for goods and services and
perform other financial transactions.
For more information: http://www.mummert.de/
(Additional source CW360°)
MobileInfo.com’s Comments & Advisory: We have
stated on several occasions that there will be turf war between the
banks and mobile operators. While banks are legitimately concerned,
the consumers would rather deal with the operators for
micro-transactions. Banks do not have the mindset to handle
inexpensive m-commerce micro-transactions for a few pennies. We would
like to see both options. There is no need to have a credit card
reader on mobile phones. It will just increase the cost. There are
other ways of entering credit card information (through SIM card, for
example) in those cases, where the buyer wants to use his/her credit
card.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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