IMGCAP(1)]
Though short on specifics, the mobile-payment partnership announced last week by Orange UK and Barclaycard in the United Kingdom is perhaps the most important declaration to date of plans by major telecommunications and banking-industry players to launch mobile payment using Near Field Communication technology, observers tell CardLine Global sister publication Cards&Payments. "It has a huge impact on the market," says Péter Párkányi, head of research and development for Hungary-based Stolpan, a European consortium working on NFC business issues. "It's not just for NFC only, (but) for mobile commerce." The partnership demonstrates that a major telco and bank can work together on NFC, he says, meaning they have apparently worked out a business case. That could involve earning revenue through cobranding of applications both on mobile phones and contactless cards. Questions about the business case for rolling out NFC have delayed commercial launches, and that is one reason NFC handsets remain scarce. Backers says NFC one day will bring mobile payment, ticketing, couponing and other m-commerce services to the masses. Besides mobile payment at the point of sale, the Orange-Barclaycard partnership will work on mobile ticketing, peer-to-peer funds transfers and loyalty programs, a Barclaycard spokesperson says. Orange and Barclaycard appear unlikely to launch NFC service for a year or two. Barclaycard plans to issue a cobranded contactless card with Orange before that. Many observers expect NFC commercial launches to begin worldwide next year. Barclaycard, the credit card issuing and acquiring arm of UK-based Barclays bank PLC, is passing over
