Telecom companies Everything Everywhere, Telefónica UK and Vodafone UK have teamed up to build a standalone m-commerce joint venture (JV).
The companies hope that the first-of-its kind partnership in the UK will bring together the expertise and technology of the UK’s leading mobile operators, and facilitate the rapid development and delivery of new mobile marketing and payment services. This will enable consumers to transfer their entire physical wallet into a new secure, SIM-based wallet regardless of which Near Field Communications (NFC) enabled mobile device, or mobile network they are using.
The new entity will provide a single point of contact for advertisers, marketing partners, retailers and banks looking to create m-commerce products and services.
Everything Everywhere CEO Tom Alexander said the groundbreaking new business will unlock the true potential of commerce in the wire-free world.
Alexander said, "The benefits will be felt across the whole industry, allowing people to manage their money and make payments using their handsets, helping advertisers reach their customers on the move, and helping banks provide their clients with an easy and convenient way of making payments."
"And for partners operating in these industries, having a one-stop shop to deal with will make things quicker, easier and more efficient. This Joint Venture will further reinforce mobile as the essential 21st century device at the heart of people’s daily lives."
Everything Everywhere, Telefónica UK and Vodafone UK have said that they will provide start-up investment in the JV, which will be available to all industry participants and aim to maximise benefits to consumers.
Telefónica UK CEO Ronan Dunne said, "The mobile marketing and payments market is extremely fragmented. By creating this new business we will underpin this nascent market, providing real size and scale, allowing consumers to benefit from new and innovative services, like the mobile wallet, and giving them more of the things they value, through offers and deals that are truly relevant to them. At the same time business customers will reach a vastly increased audience, utilising a single platform for sales, delivery and payment.
"This is not just something that is unique in the UK, but a JV that will create a model that many countries around the world could follow."
The new entity will allow companies, banks and organisations to create secure mobile versions of their transaction-based products, such as credit cards, loyalty cards and mobile tickets. Consumers will be able to use their mobiles or PC to pay for goods, services and travel using NFC.
Vodafone UK CEO Guy Laurence said, "Currently people take their mobile, wallet and keys when they leave home. In the near future, people will now start leaving their wallet at home, and in the mid term their keys may also be integrated into their mobile as NFC allows the mobile to act as a digital access card. The joint venture is the next phase in realising that ambition."
However, the three companies in the JV will continue to develop their own competing products and services.
The JV is subject to competition clearance and is expected to launch before the end of the year.
