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."

PROMOTED VIDEO
Life and Style
Sainsbury's could roll the lorries out across its whole fleet if they are successful
tech
Arts and Entertainment
tv
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmHe was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
Arts and Entertainment
'Old Fashioned' will be a different kind of love story to '50 Shades'
film
Life and Style
fashionHealth concerns and 'pornified' perceptions have made women more conscious at the beach
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
Tracey Emin's 'My Bed' is returning to the Tate more than 15 years after it first caused shockwaves at the gallery
artTracey Emin's bed returns to the Tate after record sale
Arts and Entertainment
Smart mover: Peter Bazalgette
filmHow live cinema screenings can boost arts audiences
Environment
Neil Young performing at Hyde Park, London, earlier this month
environment
News
i100
News
Prince Harry is clearing enjoying the Commonwealth Games judging by this photo
people(a real one this time)
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

Project Manager (HR)- Bristol - Upto £400 p/day

£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...

Graduate / Trainee Recruitment Consultant - IT

£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...

HR Business Partner - Banking Finance - Brentwood - £45K

£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

PA / Team Secretary - Wimbledon

£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
Countries that don’t survey their tigers risk losing them altogether

Countries that don’t survey their tigers risk losing them

Jonathon Porritt sounds the alarm
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz