Three large mobile phone operators are joining together to launch a mobile phone payments system in Hungary.
According to the Wall Street Journal, T-Mobile, Telenor Magyarorszag and Vodafone Hungary are the mobile phone dream team members that have merged to formulate the “Hungarian Mobile Wallet Association.” The alliance will be launching a trial to test a new NFC mobile payment solution that is expected to last for six months. The service will allow consumers to pay for goods and services and collect loyalty points with their mobile phones. The mobile firms made the decision to develop this payments system in an effort to help rebuild Hungary’s broken economy and fragmented communications.
The mobile network alliance is partnering with MasterCard, OTP Bank and the local loyalty card company, Supershop, to facilitate the payments pilot, called “MobilTarca” digital wallet. The wallet is virtual and allows users to store credit card, debit card and loyalty card data.
NFC World reported that OTP Bank will provide debit card accounts for consumers’ SIM cards. Merchant locations with installed MasterCard PayPass and Maestro PayPass will allow customers to make payments by tapping NFC-enabled phones.
Mobile carriers announced they would issue the SIM cards for free to trial customers. NFC World also reported that NFC phones would be free or sold at a low price during the pilot period.
The Hungarian Mobile Wallet Association is entering the mobile payments market in a timely manner. The Wall Street Journal cited that 80 percent of smartphones sold will have NFC-capabilities by the end of 2014. The research also indicated that most consumers were more likely to leave wallets at home instead of leaving their mobile phone.
The pilot has gone live at selected locations and 2,000 customers are already using the new payments system. Others are being encouraged to sign up online to take part in the pilot. The smartphone penetration rate in Hungary is on the rise, however NFC payments have not yet become common in nearby countries such as the Czech Republic, Hungary and Slovakia. The country’s full-forced mobile strategy may not be enough to encourage mass adoption amongst Hungarians.
To read the full story at The Wall Street Journal click here, or to read the story at NFC World click here.
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