Networks to launch new mobile wallet
THE three main UK network operators yesterday announced a plan to create a new “mobile wallet” joint venture.
Vodafone, Everything Everywhere and O2 held a joint briefing yesterday in which they said the service will provide a single point of contact for advertisers, banks and retailers.
The wallet will take the form of a smartphone app and will enable contactless-payments through partner banks, as well as send users offers and vouchers from advertising clients.
The three networks said the venture could be ready to offer services in time for the Olympics next year.
Smaller rival 3 said yesterday it was “concerned” it was not consulted in the plans. This could potentially pose a problem for the scheme, which still requires competition clearance. However, O2 boss Ronan Dunne said he does not believe this will be a major issue and said 3 is welcome to join as a customer.
Vodafone, Everything Everywhere and O2 will each own an equal share of the as-yet-unnamed company and will split the associated costs.
The new company will negotiate advertising deals for all of the networks. The scheme seems designed to ensure the networks get a slice of the rapidly expanding mobile advertising market. The sector grew 118 per cent between 2009 and 2010 to reach £100m. By 2015 the UK mobile ad market is expected to hit £1bn – around a fifth of the total online ad spend.
It will also act as a conduit for operator specific offers such as Everything Everywhere’s Orange Wednesdays.
The service will go head-to-head with m-commerce apps being developed by rivals including Google, which recently announced a tie-up with MasterCard.
Dunne told City A.M. the new scheme stands apart from Google and other rivals as the wallet is stored on a Sim card, meaning customers can easily change phones and networks can remotely disable the services if a user loses their phone.
He said he believes the venture can become the predominant mobile wallet in the UK. Vodafone’s UK boss Guy Laurence added he thinks the mobile wallet could soon supercede physical cards and even keys.