Nokia has announced a new mobile payment service, under the name Nokia Money.
The service is targeted mainly at countries with a limited bank infrastructure. Argumenting that there are 4 billion mobile phones worldwide, compared to only 1,6 billion bank accounts, Nokia considers the mobile phone as the perfect device to facilitate a payment or a money transfer.
Nokia will be using the tchnology of Obopay, a company they acquired recently. To use the Nokia Money service, one must have an Obopay account on which money has been transferred.
The service will be available in certain markets early 2010.
It sounds very interesting, so I did a quick search to find out more. The official Nokia press release:
Nokia Money has been designed to be as simple and convenient as making a voice call or sending an SMS. It will enable consumers to send money to another person just by using the person's mobile phone number, as well as to pay merchants for goods and services, pay their utility bills, or recharge their prepaid SIM cards (SIM top-up). The services can be accessed 24 hours a day from anywhere, meaning savings in travel costs and time. Nokia is building a wide network of Nokia Money agents, where consumers can deposit money in or withdraw cash from their accounts.
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The Nokia Money service will be operated in cooperation with Obopay, a leader in developing global mobile payment solutions, which Nokia invested in earlier this year. The service is based on Obopay's mobile payment platform, with unique and newly developed mobile elements. Nokia intends the service to be open and interoperable with other payment services as well.
"Obopay shares Nokia's vision for bringing mobile financial services to millions of people worldwide. We're excited that Nokia has chosen Obopay's platform. Nokia's leading market position, strong brand recognition and global distribution channel, using the Obopay platform with uniquely developed mobile elements, means the Nokia Money service is well positioned to bring the next generation of mobile payment services to the world," said Carol Realini, Founder and CEO of Obopay.
Nokia Money is the result of a powerful collaboration Nokia is forging between different partners in different markets around the world. It is designed to work in partnership with mobile network operators and financial institutions, involving distributors and merchants in a dynamic ecosystem to seamlessly provide the new services.
I then also came across this blog post, from the Nokia Blog:
I checked out Obopay’s site briefly to see how their system works. I assume Nokia Money will work the same way. It is basically like Paypal, which most of us are already familiar with. We initially either add our bank accounts and/or credit cards then add funds we can use for the payments. The Nokia Money agents should be very useful for those who don’t have bank accounts.
It will be interesting to see how it all turns out with Nokia Money. It sounds very promising and hopefully this will be the start of widely successful mobile payment services.