Telecom providers join forces to create digital wallet

Living in Denmark must become easier and safer. This is why the four telecom providers TDC, Telenor, Telia and the telecom provider 3 are joining forces to realise the vision of the digital wallet. Cash, social security card, debit cards and membership cards – everything that we physically carry around in our wallet or purse today will soon be stored digitally on our SIM card as ordinary mobile phone functions.

SIM card will be our wallet, access card and key bunch
The hub of the digital wallet is the mobile phone’s SIM card. Via the mobile networks of the providers, the individual customer’s SIM card can be updated with the specific functions desired by the customer.

This could range from buying petrol using the discount card stored digitally on the mobile phone, to borrowing books using the library card and making our many everyday small purchases at the baker’s, in the supermarket or in the workplace canteen. In principle, any type of payment can soon be made using the SIM card in our phone.

In the slightly longer term, we can anticipate automatically receiving warranty certificates on our mobile when we use it to pay for e.g. furniture or electronics. We will receive the electronic key card to our hotel room or summer cottage when we book our holiday or receive the access card to our new workplace via our phone. In short, the mobile phone will become our individual key to the digital as well as the physical world.

Technology in place
All that is required to use the digital wallet is a mobile phone that supports the so-called NFC technology (Near Field Communication). The first NFC mobiles have already hit the market, and from autumn 2011, virtually every new mobile phone will support NFC. The four telecom providers therefore estimate that the digital wallet will be used by the general public within a few years.

Safety for all
Finally, safety also plays an important part. Shop owners accepting mobile payment will receive their money instantly and will not have to deal with bothersome and risky cash handling that invites robbery. The mobile customers are assured safety through the well-known and safe encryption of the telecom providers, ensuring that only the individual user has access to his or her mobile phone. The same, high safety requirements as we are used to from today’s plastic cards will apply to PIN code issue.

Joint company – joint platform
To ensure safety, user-friendliness and user comfort, it is vital that only one mobile payment system is developed across all mobile networks. Specifically, the partnership consists in the four telecom providers forming a joint company which, under one joint brand, will ensure safe and trouble-free use of the digital wallet, regardless of your provider affiliation. As a customer, you should therefore not experience the slightest change in your use of the digital wallet if you change telecom provider.

The four telecom providers are pleased that this new collaboration will ensure easy access to the digital wallet for end customers as well as for all shop owners wanting to offer mobile payment solutions.

Eva Berneke, Senior Executive Vice President of TDC:
“It is important for us as an industry to only develop one joint mobile payment platform. A platform that facilitates getting started on mobile payment for businesses as well as consumers. We want to avoid the scenario from other countries where mobile customers end up having four different text message codes for a simple payment.”

Jon Erik Haug, CEO of Telenor Denmark:
“Even today, the use of mobile phones is widespread among Danes for bank transactions and buying bus fares. The digital wallet is the natural next step, and I am confident that in a few years, we wouldn’t dream of returning to the confusion of cards and coins that we all carry around with us today.”

Søren Abildgaard, CEO of Telia:
“It is imperative to us that consumers can feel safe and trust the digital wallet. It must therefore be easier and safer to use the digital wallet than to carry around your money in your pocket or bag.”

Morten Christiansen, CEO of the telecom provider 3:
"“3 is pleased that it was possible to unite the industry in creating a joint standard for the mobile payment system of tomorrow. This opens up new opportunities and, above all, will make life convenient for our customers.”