Dutch Banks and Telcos to Move Forward on M-Payment Project

Jul 8 2010

Three major Dutch banks and three mobile operators have decided to move forward with planning for an NFC mobile-payment launch in the Netherlands, NFC Times has learned.

The three Dutch banks, Rabobank, ING and ABN Amro; and three telcos, believed to be KPN, Vodafone Netherlands and T-Mobile Netherlands; gave the project the green light at a meeting June 28, following months of discussions, NFC Times has learned. The approval clears a major hurdle for the initiative and means the parties intend to move forward to lay the groundwork for a likely launch sometime in 2011–probably in the latter half of the year, sources told NFC Times.

UPDATE: Rabo Mobiel was earlier reported as a member of the group, though sources say T-Mobile Netherlands is the sixth member. Rabo Mobiel will probably join later. In response to a request for comment from NFC Times, a representative from T-Mobile Netherlands confirmed the telco was “participating in the technical and commercial feasibility study” related to the project. END UPDATE.

But the parties are not releasing any details until they announce their plans, expected in a month or two. Representatives from KPN, Rabobank and ING, believed to be the most active members of the group, along with T-Mobile Netherlands, all issued nearly identical statements to requests for comment from NFC Times about the mobile-payment project. 

“We are currently looking into the technical and commercial feasibility of such a service; we have nothing to say until this study is concluded,” said a statement from KPN.

The statements are the first public acknowledgment by the parties of the project. As NFC Times reported last week, the three banks and three telcos, dubbed the “Six Pack” by project organizers, have been engaged in secret talks for months about the possibility of offering customers contactless payment supporting Visa payWave or MasterCard PayPass on NFC phones. 

The parties had planned to make a decision around April, but delayed it. The banks and telcos are not only wrestling with the question of the business model, that is, how to share revenue, but also how to jump-start the rollout of contactless point-of-sale terminals in the Netherlands to accept payWave or PayPass applications on NFC phones and possibly other contactless-mobile devices and cards. The contactless-payment infrastructure is almost nonexistent in the Netherlands.

"You need NFC phones and POS terminals to make NFC payment (work); both are not yet there, but if you would have the major banks and telcos in the Netherlands in a joint project, that should give the project enough power to make that happen," said Tonnis de Boer, senior management and technology consultant for Netherlands-based e-payments consulting firm Innopay, when told of the project by NFC Times.  

As NFC Times reported earlier, the banks and telcos would also likely set up a national trusted service manager, or TSM, which they would co-own, to download and manage the payment applications on SIM cards or other secure elements in the phones. SIMs will likely be the preferred secure elements in the phones.

HEADLINE NEWS

Consulting Firm: Not Sure Whether Contactless Card Deployment Will Help or Hurt NFC Wallets

NFC TIMES Exclusive Insight – With U.S. banks planning to renew tens of millions of their EMV credit and debit cards this year with an added contactless interface, industry observers are naturally considering how the rollouts will affect adoption of NFC mobile wallets.

Rio de Janeiro Metro Launches Open-Loop Payments with New Visa Transit SAM

NFC TIMES Exclusive Insight – The Rio de Janeiro Metro has launched its planned open-loop payments service, one of the first Latin American transit systems to accept bank cards–in this case, Visa credit cards­–directly for payment of rides.

In-Depth: Major Pays Wallets Accelerate Support for Closed-Loop Transit Ticketing

NFC TIMES Exclusive – One of the key battlegrounds for Apple, Google and Samsung as they seek more users for their respective Pays wallets is transit ticketing–with all three tech giants targeting both open-loop payments and–perhaps surprisingly–also closed-loop transit cards. (See table below).

Report: Will Deployment of Contactless EMV Cards in U.S. Drive Growth of NFC Mobile Payments? Conclusions Hard to Draw

NFC TIMES Exclusive Insight – With U.S. banks finally beginning to issue dual-interface EMV cards in significant numbers this year and more U.S. merchants accepting contactless and NFC payments, a key question becomes whether contactless card payment will help or hurt the prospects for what has generally been considered as disappointing take-up of NFC wallets.

Half of Face-to-Face Visa Transactions Outside of U.S. Expected to be Contactless Soon

NFC TIMES Exclusive Insight – Half of all domestic face-to-face transactions with Visa-branded cards globally–outside of the U.S.–are expected to be contactless within the next two months, with Visa reporting that contactless technology is maturing in numerous countries worldwide, mainly in Europe and Asia.

Analysis: Canadians Increasingly Pay with Contactless Cards, Although Cash Continues to Play Key Role

Apr 22 2019

NFC TIMES Exclusive Insight – Contactless transactions in Canada topped 50% of all in-store card transactions for the first time ever during the first quarter of this year, said the country’s largest payments card processor, Moneris, this week.

Contactless Card Transactions Could Overtake Taps from NFC Phones ‘Quickly’ in the U.S.: Industry Veteran

Apr 23 2019

NFC TIMES Exclusive Insight – Transactions from contactless bank cards in the U.S. will “quickly surpass” those from NFC phones by the end of 2020, despite cards being rolled out much later than NFC-enabled wallets, industry veteran Randy Vanderhoof, head of the Secure Technology Alliance industry trade group and the affiliated U.S. Payments Forum, told NFC Times.

Samsung's Deal with Taiwan’s EasyCard is Latest in Global Push by Pays Wallets to Support Transit Payments

NFC Times Exclusive Insight – Samsung Pay is the first of the major NFC Pays wallets to announce it is working with Taiwan’s large closed-loop transit and retail payments service EasyCard, as it seeks to differentiate itself in a crowded and fast-growing mobile-payments market on the island nation.

In-Depth: Garmin Pay Provisioning Company Fit Pay Hopes to Build on Early Lead with Spin-Off, but Larger Competitors are Gearing Up

NFC TIMES Exclusive Insight – U.S.-based Nxt-ID disclosed late Thursday that the spin-off of its payments unit, Fit Pay, which provides bank card provisioning for Garmin Pay, would again be delayed, as it waits another couple of weeks for the closing of a nearly $17 million loan it needs to move forward with the new company.

In-Depth: Australia’s No. 2 City Shuns Open-Loop Transit Payments, Sticking with Closed-Loop Mifare for Launch of Mobile Service

Apr 10 2019

NFC TIMES Exclusive Insight – While Australia is the top market worldwide for use of contactless bank cards at retail, any hopes for those same open-loop cards and card credentials on NFC phones being used as part of a nationwide, interoperable transit payments service have been dashed for now. 

Analysis: Apple Announces Breakthrough with Apple Card, but is It Mostly Slick Marketing?

NFC TIMES Exclusive Insight – With typical style and élan, Apple introduced its new credit card, Apple Card, at a product launch event this week, one of several new services the tech giant is counting on to provide growth as its iPhone sales slip.

In-Depth: Nxt-ID Gets Much-Needed Financing, Clearing Way to Spin Off Its Payments Wearables Provisioning Unit Fit Pay

Apr 5 2019

NFC TIMES Exclusive Insight – U.S.-based Nxt-ID, whose Fit Pay unit provides payment card provisioning for Garmin Pay, has announced a closing date for a $16.5 million loan it will use for working capital and to refinance an existing loan.