Mobile networks team up over 'wave and pay'

The rise of UK shoppers paying for goods with a wave of their mobile phones is set to accelerate after the three largest operators teamed up to launch a mobile commerce venture.

Vodafone, O2 and Everything Everywhere (EE), the parent of Orange and T-Mobile, announced yesterday that they had teamed up to form a partnership – the first of its kind – that would help users abandon their wallets in favour of their mobile phones.

"Wave and pay" technology has dominated the mobile phone industry this year with companies including Nokia and Research in Motion announcing plans to include Near Field Communications (NFC) technology in their new phones. Google then launched its "mobile wallet" to great fanfare in May.

Tom Alexander, the chief executive of EE, said it was a "crucial stage in the development of this technology. The customer expectations are there now".

The "m-commerce platform" will develop the technology behind the mobile wallet and provide a single point of contact for advertisers, marketing partners, retailers and banks to come together to create mobile versions of their products. Ronan Dunne, head of Telefonica UK, said the news could be "a landmark" for the industry. Fred Huet, the managing director of Greenwich Consulting, said that the collaboration of rival operators meant "the jigsaw pieces were being put in place".

The platform is also aiming to attract advertisers, who can use the NFC technology to book marketing space as well as offer coupons, loyalty cards and other deals to people on the move.

Shaun Collins, the founder of CCS Insight, said: "This is a long-overdue co-operation between the operators that means contactless payment has a chance of finally being deployed." He continued: "Up until now it was seen as a good idea but the market place was far too fragmented."

The joint venture will head to Europe for regulatory clearance, which could take up to six months, although the companies are confident they will launch before the end of the year.

They said the venture is open to all industry participants. Yet the fourth operator in the UK market was left fuming yesterday, as it was left out of proceedings. Kevin Russell, the chief executive of Three, said that "directionally, this is a good move on taking m-commerce forward," before adding he was "more than a little concerned, as a core competitor, that we have been excluded from this joint venture."

Earlier this year Orange teamed up with Barclaycard to offer the first commercial contactless payments in the UK. Mr Collins of CCS said that in five years "most people will use their phones to pay for anything under £30".

Mobile ad revenues to soar

The revenues from advertising on mobile phones are set to more than double this year to $3.3bn. Global ad revenues hit $1.6bn in 2010, and research group Gartner predicts that will rise to $20.6bn in four years, driven by the adoption of smartphones and tablets.

This would mark a rise of importance for the market from 0.5 per cent last year to more than 4 per cent of companies' total advertising budgets. The biggest growth is seen in the US and Western Europe, whose combined revenues are expected to account for more than half of those around the world. Gartner researchvice- president Andrew Frank said that in 2011: "We are finally seeing some important drivers fall into place."

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Brendan O'Carroll as Agnes Brown in the 2014 Mrs Brown's Boys Christmas special
tvCould Mrs Brown's Boys have taken lead for second year?
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
news
Sport
Chelsea midfielder Cesc Fabregas
footballChelsea vs West Ham live kicks off coverage of all 10 of Boxing Day matches
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
i100
Arts and Entertainment
Jack O'Connell stars as Louis Zamperini in Angelina Jolie's Unbroken
film review... even if Jack O'Connell is excellent
Arts and Entertainment
Madonna is not in Twitter's good books after describing her album leak as 'artistic rape and terrorism'
music14 more 'Rebel Heart' tracks leaked including Pharrell Williams collaboration
News
news
Arts and Entertainment
Wolf (Nathan McMullen), Ian (Dan Starky), The Doctor (Peter Capaldi), Clara (Jenna Coleman), Santa Claus (Nick Frost) in the Doctor Who Christmas Special (BBC/Photographer: David Venni)
tvOur review of the Doctor Who Christmas Special
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all