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Future of mobile payment hinges on bank and mobile operator collaboration, claims Atos Origin


Paris / London, 6 July 2007 - Banks and mobile operators must collaborate to secure the long-term future of mobile payment, according to a new whitepaper from Atos Origin. The report, entitled Breakthroughs in the European Mobile Payments Market, asserts that only through co-operation and joint initiatives will banks and mobile operators be able to offer consumers a compelling, secure and easy-to-use solution. The paper argues that stakeholders will also be able to offset the significant product development and marketing costs by pooling resources.

“Despite many initiatives and projects undertaken to develop mobile payment solutions, nothing compelling has emerged, until now,” said Cees de Jong, senior vice president, global markets development and operations at Atos Origin. “Thanks to technological advances and new regulations, the time is now right. “Consumers are changing in their attitude to what a mobile phone can do, and mobile phones are changing to make those things easy to do. Our latest white paper states that the opportunities in the mobile remote payment market are there for the taking not just for mobile operators, but also for the internet giants, banks and other new entrants.”

Short term outlook – remote mobile payment
In the immediacy, opportunities in the mobile remote payment market are there for the taking – not just for mobile operators, but also for the internet giants, banks and other new entrants. Revenue opportunities exist beyond mobile content; remote payment can be used for other applications, such as pre-paid top-up, electronic bill payment, mPOS, international fund transfer and for making online payments.

Mid-term outlook – remote/proximity mobile payment convergence
The report also outlines how, in the mid term, convergence will have a significant impact on mobile payment, and explains how and why mobile remote payment technology and near field communication (NFC) proximity technology will be soon be complementary. A good example of this is mobile ticketing: using a remote mobile payment service, consumers will be able to buy and download an m-ticket on their mobile phone, before gaining entry by swiping the handset over an NFC-enabled gate or barrier.

Long-term outlook – NFC contactless technology
However, it is NFC contactless technology, and collaboration between banks and mobile operators, that will really determine the long-term future of mobile payment.
NFC contactless payment is a huge prospect because it addresses both the cash and cards payment markets. However, it will take some years before it becomes a reality – standardisation and business model issues need to be resolved. This can only be achieved through strong collaboration between stakeholders, including mobile operators, banks and retailers. Without this collaboration, rival solutions and technologies could proliferate, which could inhibit the adoption of mobile payment solutions.

Collaboration or Competition?
The paper also highlights the strategies that could emerge and disrupt the development of mobile payment. These could come from telecoms companies, which could provide a quintuple play service – m-payment plus Internet, telephony, TV and mobile.

Non-telecoms companies, such as banks or retailers, which already offer financial/loyalty cards and mobile services to their customers through MVNO agreements, could offer a ‘killer bundle’, including a mobile handset and m-payment tools.

Conference call
Atos Origin is also hosting a Breakthroughs in the European Mobile Payments Market conference call, taking place on 6 July at 10am UK/11:00h CET. If you would like to register for the conference call, please contact Malini Majithia on +44 20 7386 4863.

About Atos Origin
Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company’s annual revenues are EUR 5.4 billion and it employs 50,000 people in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors. Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Euronext Market Solutions, Atos Worldline and Atos Consulting.

Atos Origin is one of the key players in the European Telecom and Finance arena with revenues in these sectors of more than €1.6 billion and over 20 years experience. Through the expertise of Atos Worldline, a major European player in the processing of large-volume electronic transactions, Atos Consulting and the systems integration and managed operations capability of Atos Origin, the company helps over 350 customers around the world with complex telecom and finance projects.

For more information, please contact:

Carrot Communications
+44 20 7386 4863

Atos Origin
Jose de Vries
+31 6 30 27 26 11


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