MasterCard and German telcos promise mass-market mobile payments

MasterCard is partnering with leading German telcos Deutsche Telekom, Telefónica Deutschland and Vodafone to develop a mass market mobile payments network covering 80% of handset-owners in the country.

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MasterCard and German telcos promise mass-market mobile payments

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Instead of connecting to individual mobile operators, issuing banks who sign up to the platform will connect to MasterCard's wholly-owned payments processor and Trusted Services Manager Trevica. In this way, banks can gain access to a number of mobile operators with a single integration effort.

Stefano Parisse, group director consumer services at Vodafone says: "We want to enable banks to reach more of their customers with secure NFC. By reducing the cost for banks to integrate and by reducing their time to market, we are confident that we have a model for Germany that will work around Europe."

Pawel Rychlinski, division president Germany and Switzerland at MasterCard, bills the partnership as a 'game-changer' in Germany that will be extended to more European countries during 2014.

"By bringing together the best in banking and mobile, we make mobile payments ubiquitous across all networks, just like messaging today," he says.

The plans are an improvement on the usual proprietary telco offerings to the banking industry, but may be too little and too late given the more attractive possibilities opened up to banks by the recent development of Host Card Emulation and cloud-based payments techniques.

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Comments: (2)

A Finextra member 

EMV should make up their mind: if SE-less HCE is fine, why bother with the operators (i.e. SIM cards)?.. After all, ISIS is not going anywhere fast in the US...

One can argue that not everyone has a smartphone, but is someone with a feature phone likely to be an early adopter of mobile payments? What about user experience (i.e. real-life performance of SIM-based NFC)?

 

A Finextra member 

Integration effort/cost is one of the barriers to wider adoption. However, the main issue with the business model is still not addressed. Deployments and research so far show that consumers use NFC from factor for everyday small payments. The cost of processing small payments using debit anc credit card products is already too high (either loss for the banks, or fees too high for the merchants), so it is difficult to find room for revenue stream for mobile operators. Unless the cost is addressed with new processing models, NFC is struggle.

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