Pay-Buy Mobile - DoCoMo inside

KTF will pioneer GSMA's "Pay-Buy Mobile" initiative in Korea this summer, a couple of weeks after SK Telecom's launch of a service with Visa International (30,000 3G subscribers from April on).

PBM combines NFC (which should please Nokia) with SIM/Cards techno (which should please operators), and the initial casting of 14 operators from 3 continents looks strong : overall, AT&T; China Mobile; KALL; KTF; MCI; MTN; NTT DoCoMo; Rogers Wireless; Smart Communications; Telenor, TeliaSonera; Telecom Italia; Turkcell, and Vimpelcom claim 900 millions subs.

Yet, don't look for a SK Telecom, a Orange, a Telefonica or a Vodafone out there. The Sympay syndrom ? The fear NTT DoCoMo might steal the show and try to make PBM converge with its own initiatives (FeliCa and EDY through BitWallet) ?

Don't look for a bank either. At this stage.

What I do see though, is a transcontinental initiative with a GSMA label. And only a crosscontinental move could force a change in Europe, GSMA's birthplace. Up to now, a lobbying deadlock has been preventing operators and financial institutions from reaching an agreement and m-payment from progressing towards standardization. No-one wants to lose ground on one's home turf (mobility, financial services), and no-one wants a competitor to succeed (ie banks blocking deals between cellcos and more reactive players like Visa or Amex).

Should this G14 federate a few institutions across - say - Asia and North America, things may change. No financial institution will want to lose the face on that one for too long.

DoCoMo did put a few coins in AT&T and KTF. An expensive dime at a not always relevant time. We are about to know if they were just playing with one-armed bandits or really expecting some payback.

PayPal m-pilots and 90s revivals

Bango didn't wait one day and the beginning of the Mobile Content World forum to announce their implementation of PayPal. The M-content enabler had to surf on the other news of the day (eBay putting their hands on Skype).

A couple of months ago, operators would pull the plug on Simpay (analyze this : pulling the plug on a wireless project) and now, in a weird late nineties revival, mobilecos are talking next gen networks and fearing for their golden geese (screaming to the top of their lungs they might lose their dear voice ARPU) while ambitious dotcoms are splashing headlines with megabuck megamergers. The same dotcoms with about the same indecent market caps (eBay, Yahoo!, Google...), followed by the same usual suspect (Microsoft).

But this time, they're not only using paper which may end down the drain : they're laying actual greenbacks from actual profits. Even better : consumers are using their mobile payment solutions.

mobile payment : hibernation is over for the Near Field Communications forum

Showtime for FeliCa Networks : the DoCoMo-Sony JV will provide chips for all Japanese MNOs. KDDI signed the agreement last September and Vodafone KK just joined suit right after one more lousy month (their market share is not likely to improve dramatically until they replace that problematic 2G of theirs with a reliable and comprehensive 3G service). Just to remain one step ahead, DoCoMo announced at the same moment a deal with East Japan Railways around this mobile payment enabler developped by Sony Corp but with a specific branding ("mobile suica").
When 3 fierce competitors on a major W-CDMA vs cdma2000 market decide to use the same solution for such a key entry point, one can expect a big boost for mobile commerce. We're talking about Vodafone, DoCoMo (who as usual insists on the packaging of the solution with i-mode), and KDDI (a relatively small player but the herald of the CDMA Development Group in a huge market).
This surely is bad news for such competitors as Moneta (time will tell whether they can make it abroad as a solution as well as as a business model), but this goes far beyond the mobile players' arena : the likes of DoCoMo and Vodafone don't want Procter & Gamble / Procter & Gilette dictating them the way mobile payment will work (remember RFID ?), and Sony are just pleased to open a real new biz opportunity to brighten their IR slides. Yet in Japan Sony is much more than the Sony you know and the conglomerate just reorganized their financial businesses' organisation around Sony Life Insurance Co., Ltd., Sony Assurance Inc. and... Sony Bank Inc. Because Sony is also a bank and because SK Telecom is almost a bank, reproducing the successes of mobile payment overseas will certainly not be a walk in the park (the French MNOs know very well you cannot make mobile payment happen without involving big banks).
To know where the wind is blowing, watch out for potential changes of memberships in the various m-payment fora : will Sony or FeliCa join the Mobile Payment Forum (the only cross-industry m-payment forum) ? will DoCoMo join simpay (the operators' forum where Vodafone has a seat) ? or will Vodafone simply let his KK collect some Ks on its own in Japan ? will all these players keep staying away from the Mobile electronic Transactions forum ?
Even better lads : along with many other organizations, that MeT forum and the Mobey Forum (the one meant for and by the big banking institutions) just announced they joined the NFC Forum as non profit members. Yeah, the very forum I was mocking at the other day because of the abandon of its website released a bombshell on february the 24th. Sony happens to be a founding sponsor member of this forum, along with Nokia and Philips (LG and RF Micro Devices being non sponsor members and Korea's ETRI a non profit member). So in their first press release in ages, the NFC Forum announced a potentially disruptive conference at CTIA Wireless 2005 next month and an impressive cast of new members : Microsoft, Visa International, MasterCard International, Samsung, Motorola, NEC, Texas Instruments and Panasonic / Matsushita Electric Industrial Co become both new sponsor members and members of the board (just to make sure you know both where and how hard the wind is blowing), and Gemplus, Logitech, Smart System Technologies Inc, Skidata AG, Cetecom Spain, Giesecke & Devrient, JCB Co Ltd, 3ALogics Inc join as non sponsor members.
Well. Nice crowd, but still no MNO to be seen.
So you thought Vodafone & DoCoMo were wise enough to chose the same solution in Japan ? They're just about to realize that while their US counterparts (Verizon Wireless, T-Mobile, Cingular, Sprint-Nextel) demonstrate the advantages of wireless retailing in New Orleans, LA, the whole industry will signify their independance in the same Ernest N. Morial Convention Center.