Business telecoms: Phone companies enter into platform talks

15/12/2011

Three of the largest UK telecom operators are set to enter into informal talks with Three about involving their rival in their proposals for a joint mobile payment platform.

Plans will be submitted to European regulators next month to provide businesses and domestic users with a one-stop shop for mobile payments and marketing for mobile phone users in the UK, the Financial Times reported. 

However, Three complained that it had been excluded from the venture begun by Everything Everywhere, Vodaphone and O2.

As a response, the network called on the European Commission to block the proposals, claiming that its exclusion would be anti-competitive, despite the larger companies inviting Three to be a customer of the scheme.

Providing customers with a mobile payment platform is a major step forward for business transactions and will allow phone users to utilise their mobile as a wallet that can be swiped to pay for goods.

The phone companies are anxious that the technology will be made available before the launch of Google Wallet, a mobile application that will allow consumers to use their phone as a credit card by paying for and redeeming offers by scanning mobiles.

However, many businesses may have security fears that will prevent them from making use of the new technology.

According to research by Halifax, over two million phones get stolen every year in the UK, which could lead to a widespread crime crisis if phones were able to make purchases.

Despite concerns, mobile payment platforms are emerging as a lucrative market across the globe, with Paypal and Visa also vying to get a piece of the action.

Paypal is currently negotiating with retailers to allow them to accept payments from its mobile internet service, according to the Financial Times.

Visa is also preparing to launch its own platform in 2012.

Posted by Tom Barnett