Feeds

Bankers plot telco bypass for payments

Tight margins not to be shared with operators

The essential guide to IT transformation

The Payments Council has been explaining its plans for a mobile payment platform: one that doesn't leave a cut for the network operators but keeps the revenue for the bankers.

The council's head of innovation has been talking to NFC World about how the platform will work, and being quite explicit that telcos won't be invited to share the cake.

The organisation, which counts all the significant UK banks in its membership, is putting a tender together for the development of a standard backend architecture to handle payments made on mobile phones, regardless of the handset technology used.

"Some may go for NFC, and some may use browser-based systems or SMS methods, it's up to them", Richard Martin of the Payments Council told NFC World, but he also explained that operators shouldn't expect to make any revenue from the wallet replacements:

"I wouldn't say the new platform will necessarily cut mobile operators out of payment services ... [but it's] not something that telcos have traditionally been set up to work around."

Martin doesn't dismiss revenue opportunities for telcos, suggesting that they might gain from additional data usage, but fortunately the UK's network operators already have a plan in place to make money from NFC without taking a cut of every payment.

That plan involves creating a standard advertising platform, enabling an advertiser to sign a single deal to provide an NFC application (such as a loyalty or identity card) which will be usable by customers of any network operator – except Three, which was inexplicably left out of the deal.

Elsewhere in the world, operators are still hoping to make money by charging payment services for space in their NFC handsets, or by running their own payment systems and taking a cut of every transaction, but in the UK it seems banks will make money from money while operators will make money from advertising, and consumers just have to get used to it. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?