Ericsson and VISA announce strategic partnership to promote mobile e-commerce
Date: Wednesday, November 17 1999
Ericsson and Visa International have signed a Memorandum of Understanding to
develop secure payment solutions for the purchase of goods and services over
the Internet via a mobile terminal.
The partnership will develop mobile e-commerce and drive open standards for
payment transactions over wireless networks. Ericsson and Visa will cooperate
on providing a variety of payment solutions leveraging open standards such as
the WAP, Bluetooth, SET Secure Electronic Transaction and EMV protocols to
address different market requirements.
An area of cooperation will be developing a payment solution for mobile
e-commerce using Ericsson's Bluetooth enabled wireless wallet. The wireless
wallet, which can serve as a conventional wallet for bills and coins, contains
multiple smart card readers. A smart card inserted into the wallet can
communicate with a Bluetooth enabled mobile terminal. The mobile phone can be
used for Internet shopping using the smart card in the wallet for payment.
Bluetooth is a short-range radio frequency protocol that allows devices to
interact remotely. It means the wallet can stay in the pocket of the user
while interacting with the mobile phone.
Other joint activities undertaken by Ericsson and Visa will include
participation on standards committees, market testing of prototypes and
payment solutions, joint business development activities, and the development
and adoption of other secure payment solutions, such as the SET Secure
Electronic Transaction protocol, to a mobile environment.
Industry studies predict that within the next ten years, consumers will
increasingly rely on non-PC devices, e.g. mobile phones, to access the
Internet. This partnership will ensure that Visa member banks will be able to
offer cardholders secure payment solutions for the purchase of on-line goods
and services with a mobile phone.
"The advent of mobile phones which can access the Internet and receive
messages over the air has provided Visa member banks with a whole new
opportunity to offer convenient and exciting services to cardholders on the
go," said Philip Yen, senior vice president of Internet and Access Channels
at Visa International.
An example of a new service made possible by this technology is the targeted
promotion of concert or theater tickets. This service will make it possible
for mobile phone subscribers to be notified of an event before the tickets are
sold out. The user can purchase the tickets immediately over the Internet
using a WAP enabled mobile phone. The tickets are then sent electronically to
the phone and are stored on the smart card residing in the wireless wallet.
The user can arrive at the theater and present the smart card containing the
"Ericsson is continuously exploiting the full market potential of mobile
commerce, and within the solutions created through our partnership with Visa,
we will open up new business opportunities for our customers, the operators.
Merchants as well as the banking and finance industry will also be able to
generate increased revenues," said Jan Lindgren, Vice President and General
Manager for Wireless E-Solutions at Ericsson. "We look forward to working in
collaboration with Visa to expand secure, mobile e-commerce solutions."
Ericsson is the leading provider in the new telecoms world, with
communications solutions that combine telecom and datacom technologies with
freedom of mobility for the user. With more than 100,000 employees in 140
countries, Ericsson simplifies communications for its customers - network
operators, service providers, enterprises and consumers - the world over.
FOR FURTHER INFORMATION, PLEASE CONTACT
James Borup, Ericsson Corporate Communications
Phone: +46 70 590 9261; E-mail: [email protected]
Jean-Louis Siegwald, Business Development
Ericsson Business Unit GSM Systems
Phone: +46 70 345 2728; E-mail: [email protected]
Colin Baptie, Visa International
Phone: +1 650 432 4671; E-mail: [email protected]
About Visa International
"As the 'World's Best Way to Pay', Visa is the leading payment brand and the
largest consumer payment system worldwide with more volume than all other
major payment cards combined. Visa plays a pivotal role in advancing new
payment products and technologies to benefit its 21,000 member financial
institutions and their cardholders. Visa has more than 80 smart card programs
in 35 countries and on the Internet, with 23 million Visa chip cards,
including over eight million Visa Cash cards. Visa is pioneering SET Secure
Electronic Transaction programs to enable and advance Internet commerce.
There are more than 880 million Visa, Interlink, PLUS and Visa Cash cards,
which generate nearly US$1.4 trillion in annual volume. Visa-branded cards are
accepted at more than 18 million worldwide locations, including at over
530,000 ATMs in the Visa Global ATM Network.
Note to Editors:
Bluetooth is a low cost, short-range radio transmission protocol between PC
motherboards, mobile phones and other portable devices. A "Bluetooth Special
Interest Group", consisting of leaders in the telecommunications and
computing industries, is driving development of the technology and bringing it
to market. Version 1.0 of Bluetooth specifications should be published spring
Wireless Application Protocol (WAP) is an open global standard for
communication between a digital mobile handsets and devices and the Internet
or other value-added Service. WAP -based technology enables the design of
advanced, interactive and real-time mobile services, such as mobile banking
and electronic commerce. WAP specification enables solutions from various
suppliers to work consistently for end-users on the digital networks. For more
information about WAP, see http://www.wapforum.com
SET Secure Electronic Transaction was developed by Visa and other payment
industry and technology companies as an open, global standard for secure
electronic commerce. It is based on encryption technology developed by RSA
Data Security. It means cardholders and merchants use special encoding and
identification software called digital certificates, to authenticate
themselves to each other and to allow cardholders to safely send card details
over the Internet. Partners in this project included MasterCard, Microsoft,
IBM, NetScape, SAIC, GTE, Terisa Systems and VeriSign. More information
provided at http://www.SETCO.org
EMV stands for Europay-MasterCard-Visa - a joint industry working group
created to facilitate the introduction of chip technology into the
international payment systems environment by developing joint specifications
for Integrated Circuit Cards (ICC) and terminals for Payment Systems. EMV' 96
serves as the global framework for chip card and terminal manufacturers