Japan McDonald's Mobile-Payment System May Lead Others To Follow, Analyst Says

The ongoing pilot of a mobile-phone electronic-wallet coupon and payment system at McDonald's fast-food restaurants in Japan lends credibility to mobile payments, Red Gillen, senior analyst at United States-based Celent LLC, tells CardLine Global. McDonald's and NTT DoCoMo, Japan's largest mobile-network operator, are testing the system in 175 McDonald's restaurants in Tokyo. DoCoMo subscribers download an application and register on McDonald's Japan's mobile Web site. Subscribers receive digital vouchers on their mobile phones that consumers can redeem by tapping phones against contactless readers at the counters of participating restaurants. Customers keep track of their coupons on their phone bills. Gillen says other large Japanese merchants may start to follow McDonald's lead with this system. "If McDonald's is doing something, it will get a lot of attention," he says. Mobile payments in Japan mostly have focused on transit, but Gillen says merchants near train stations may start to take advantage of the technology. McDonald's Japan plans to expand the program to a total of 3,800 stores by 2009, according to a published report.