German payments processor GZS has teamed up with mobile operator E-Plus to launch a joint venture company, Payitmobile, for delivering wireless payment services to the handsets of German and European consumers.
The Payitmobile service provides an interface between mobile handsets and the GZS payments network and is expected to begin trials in the middle of the year. E-Plus, Germany's third largest mobile phone operator, and GZS have recruited Dortmund-based e-business software provider Materna and consultancy Accenture, to participate in the roll-out and establishment of the service.
Payitmobile aims to develop a universal system for using a mobile phone to make cashless payments alongside eurocard and credit cards. Customers will be able to use it to pay for their groceries in supermarkets or to transfer money between bank accounts. The same applies to goods ordered by telephone via the Internet and, in future, multimedia content called up direct via mobile phones.
Customers identify themselves the network when turning on their mobile phone by entering their mobile phone number. In addition, they use a PIN code supplied by Payitmobile for each payment transaction.
Within the next three to four years, ten million customers from all the networks in Germany should be able to make mobile payments for products and services via Payitmobile, forecasts GZS.
The new payment system can be integrated for mobile phone providers within two months says GZS, which is inviting other German mobile phone network operators, service providers and banks to join the initiative. In addition, the partners are looking for franchisees in a bid to expand the concept internationally.