5-3=4
It looks like the drive to push mobile wallet technology has gone up a gear, in the UK at least. Vodafone UK, Telefónica UK (O2) and Everything Everywhere (Orange and T-Mobile UK) have announced they're forming a joint-venture to accelerate the development of m-commerce and mobile wallet technology in the UK.
This is a clear acknowledgement of the challenges faced in getting regular punters to warm to the concept of paying for stuff with their mobile phones. Not only are there fears about security and general unfamiliarity, there's also the challenge of convincing people they need this technology and developing the infrastructure to make it viable.
"The JV will provide a single contact for advertisers, marketing partners, retailers and banks making it far easier to create m-commerce products and services," said the announcement. "The JV will be open and available to all industry participants, maximising benefits to consumers."
Except Three, it seems. The remaining, and smallest, UK operator - which specialises 3G mobile data technology - has been excluded from this particular club, much to the chagrin of its UK boss Kevin Russell.
"Directionally, this is a good move on taking m-commerce forward," said Russell. "As the leader in the adoption of mobile internet services in the UK we would want and expect to be at the heart of a cross-industry development like this and are more than a little concerned that - as a core competitor - we have been excluded from this joint venture. The crucial test of the openness of this initiative will be our ability to launch services for all UK mobile consumers simultaneously."
It will be interesting to see what the real story behind this exclusion is. Was Three even approached? If not why? The joint-venture is subject to competition clearance, and the exclusion of Three will presumably be a consideration in making that decision.
While this is a supposedly ‘open platform infrastructure', covering both technology and commercial matters, the various operators will develop competing offerings based on it. Here are some quotes from those who are invited to the party.
"Currently people take their mobile, wallet and keys when they leave home," said Guy Laurence, CEO of Vodafone UK. "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."
"The mobile marketing and payments market is extremely fragmented," said Ronan Dunne, CEO of Telefónica UK. "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."
"This groundbreaking new business will unlock the true potential of commerce in the wire-free world," said Tom Alexander, CEO of Everything Everywhere. "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."
