News
Issue #2002 - 36 (September 2002)
(Updated October 2, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

Vodafone expands M-Pay billing solution

24 September 2002 -- - Vodafone has announced an enhancement to its M-Pay billing service, allowing customers to pay for goods using a debit or credit card. The current M-Pay Bill service only supported micro-transactions up to certain value, which were charged to the user's Vodafone bill. 

M-Pay now enables third party content providers and merchants to generate revenue from their mobile services. Vodafone licenses these content providers to use M-Pay logo and indicate that they support payment via the Vodafone's payment system.  As far as customers are concerned, they register their personal information once with Vodafone and can then use a PIN code to purchase services and goods from any site supporting M-Pay. Vodafone supports both WAP and traditional web-sites. 

MobileInfo Comments and Advisory: No doubt that wireless providers are trying to get into the payment settlement business in competition with banks. Both have different motives. The wireless providers want to increase the use of wireless minutes and make money from this increased utilization. Banks provide a pure payment settlement service and want to charge the merchants (2-4% of the value of the purchase) for this service. Most Internet merchants find this charge exorbitant in this day and age of Internet-based and low-cost computing. Banks will have to trim their fat overhead expenses to support micro-transactions. This fight will take its own course to settle down. We, on behalf of the consumers, Internet merchants and wireless Industry, like the looming competition rather than the duopoly of Master Card and Visa or shall we say, tripoly of Master Card, Visa and Amex.  

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.