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To: Eric L who wrote (8885)	1/20/2001 4:28:55 PM
From: Eric L	Respond to of 34857

Part 7 of GSMA January 2000 AP Workshop - Applications and M-commerce >> Applications and M-commerce Stella Penso Marketing Manager Turkcell The speaker opened her presentation defining M-commerce as inter-sector roaming (connections with banks, retailers etc.) - this is a change from the traditional "roaming" that cellular operators provide giving the ability to use a phone on multiple networks. In order to be successful M-commerce must overcome many issues including: · Customer Ownership / Branding · Who has the billing relationship? · How are services charged for? (Per minute? Per Packet? What currency etc.) Ultimately operators want customers to widely adopt m-commerce services but to do this there need to be some key factors resolved: · Simple processes (Service, UI (user interface) and Payment on a range of phones and platforms) · Choice in Payment method and units · Security · Compatibility in a roaming environment (big hurdle to overcome) In addition there will be different solutions required for difference customers (Prepaid, Postpaid and Corporate users). Examples of M-commerce solutions are Mobilepay (Sonera), Movilpay (Telefonia), Paybox (Germany), Dual slot (France Telecom), GISMo (USA) - clearly this fragmented market needs to be consolidated to provide the roamed services that will be required for the ubiquitous adoption of m-commerce. The reality of the situation is that multiple parties seem to be playing in the m-commerce field - the challenge for the network operators is to fulfil the role of the mediator in the billing relationship enabling application developers to harness the power of m-commerce in a simple, uniform manner. << also: Applications and M-commerce Eckhard Ortwein Paybox Despite the previous presentation that suggested that operators should play the role of the "billing" engine for m-commerce, Paybox believe that "Business models don't work with operators" and that application providers need to find an independent solution for payment (and ultimately revenue). Paybox is a payment platform providing fast and secure payment for mobile applications and was recently voted "start up of the year" in Germany. Founded July 1999 with 70 employees, Paybox's vision is to become the global payment standard for mobile devices. The global payment network they use is provided by Deutshe Bank giving global reach similar to Citibank / HSBC. The service does not require any special terminal / handset, does not require the involvement of a network operator and does not require protocols such as WAP or security such as PKI as it currently uses voice technology. In the future Paybox plan to support WAP via GPRS and PKI, but not until they are widely commercially available. Paybox has relationships with over 500 web shops and 2000 mobile merchants (e.g. taxi drivers) and provide the payment mechanism for AoL, Lufthana, eBay, HP etc. Following Germany, Paybox will launch services in Austria, Spain, Sweden, the UK and Netherlands. The service uses a Java pop-up when payment is requested. A mobile number is entered as an ID and the mobile (user) is then called (on their mobile phone) by an IVR and a pin number is requested. If this is correctly entered the transaction is approved and a direct debit is taken from customer's bank account. Currently the services is being used by Debitel to support pre-pay top up, person to person payment (money transfer), WAP content, Internet shopping, eBay auctions, vending machines etc. Below is a summary of the "sign-up" process that customers go through to join the service: · Referral (e.g. by Debitel) · Sign-up (on-line / off line) · Scoring and Risk assessment · Account obtained and transaction authorised · Money clearing managed from customer's back account Paybox also manage the marketing and customer care for the payment system allowing the application provider to focus on their services rather than having to worry about payment issues. Merchants (application providers) are paid on a bi-monthly basis by Paybox once they have signed up and been accepted on the Paybox network. Benefits for operators are: · First mover advantage with a Co-branded service offered - E.G. "Debitel Paybox service" (Paybox insist their brand is included in any service name). · Usage of an open payment platform that can then be used for operator's own services such as top-up vouchers, WAP content services, applications revenues etc. · Reduction in churn as the payment method is intrinsically linked to the mobile handset and it can also generate network traffic. The key strengths of the service are: * A clear business model * Usability with ALL handsets * The service is very simple * There is a rapid time to market advantage << - Eric -