"Once implemented, consumers will be able to use their mobile devices to choose their preferred payment mode for almost any desired service.
July 30, 2001 / News Archives
Telecom Operators Team Up To Develop Mobile Payment Platform
By asia.internet.com staff
Singapore is one step closer to making mobile commerce a viable reality for the more than four million people on the island Republic. At the Infocomm Development Authority's (IDA's) behest, MobileOne (M1), SingTel and StarHub - the three mobile operators in the city state - will work together with industry partners to develop a nationwide mobile payment platform that will firmly place Singapore on the global m-commerce map.
"This partnership reflects the openness and maturity of the three local mobile operators and redefines the competitive landscape for m-commerce. 'Co-opetition' is key to creating more value for the consumers and new opportunities for the industry players," said Chan Kin Hung, vice-president of StarHub Mobile.
Singapore's IDA had announced slightly more than two months ago that it was taking proposals to develop mobile payment systems, a vital component of a mobile commerce infrastructure, that will be easily implemented by mobile operators, vendors and merchants alike.
"Once implemented, consumers will be able to use their mobile devices to choose their preferred payment mode for almost any desired service. Vendors and merchants will also enjoy a more conducive environment from which new and innovative services can easily be built and integrated. We believe this initiative may be one of the first in the world," Chan added.
The initiative will see the three jointly evaluate, test and ensure the operational, commercial and technological viability of proposed mobile payment solutions. Evaluation criteria include the provision of an open standard, security, scalability, end-to-end solution and payment in multiple ways.
The shared mobile payment platform will make it unnecessary for merchants to invest in separate integration systems with each mobile operator, and will eventually grow the customer base for both operators and merchants to tap into in the near future. IDC Asia Pacific foresees the value of m-commerce transactions to be worth at least US$200 million in Singapore alone.
Said Neil Montefiore, chief executive officer of M1, "We regard the creation of a common mobile payment platform as fundamental to harnessing the full potential of m-commerce for all parties involved in the process. It will also contribute to a positive customer experience and that, ultimately, will determine the degree of success that m-commerce will enjoy in Singapore."
Added Lucas Chow, chief executive officer of SingTel Mobile, "This initiative will re-characterize the mobile competitive field and benefit mobile users in Singapore. Our effort will focus on working with partners who are committed to simple, secure and inexpensive solutions that exceed customer expectations."
Mobile payment solution providers are free to form consortiums to offer an end-to-end solution covering payment mechanisms, financial arrangements and merchants in their proposals. Proposals are due in August 2001, and subsequent trials are expected to begin in October of the same year.
