buy metformin online

Turkcell to Expand Mobile Wallet to non-NFC Payments after ‘Slow’ NFC Adoption

Oct 9 2012 (All day)

Turkish mobile operator Turkcell, one of the first telcos to commercially launch NFC, is introducing a new mobile wallet that includes a PayPal-like service enabling consumers to pay for purchases by entering their phone numbers on point-of-sale terminals.

The new Turkcell Wallet will continue to enable users to tap to pay if they have an NFC-enabled phone and SIM, as with the telco’s previous wallet. And the new wallet also will offer separate e-commerce payments with just a phone number, along with person-to-person funds transfers, airtime top-ups and coupons and offers.

But the face-to-face payments service, designed to enable users to make physical-world payments with their phones, is an acknowledgement by Turkcell that the telco’s NFC rollout is not taking off as expected. Still, Turkcell's mobile wallet product manager, Ergi Sener said the telco is not backing off of NFC.

UPDATE: “Because of the slow adaption of NFC payments and still lack of NFC awareness, face-to-face payments will be introduced,” he told NFC Times. “But we will continuously invest in NFC SIM cards and NFC handsets.”

He added earlier that the “advantage of this service is any Turkcell subscriber can benefit from this easily at the physical point of sale.”

Turkcell has not yet introduced the face-to-face payments service as part of the wallet, but plans to do so “very soon,” said Sener. Terminals controlled by Garanti Bank would be converted with a software upgrade. The telco was not promoting this service yet on its Web site as part of the mobile-wallet launch. END UPDATE.

With the system, consumers would enter their phone numbers on the POS terminal, then they would receive a pop-up message on their phone screen. They would choose their credit card from their wallet and enter a PIN code. According to Sener, the user would enter the PIN on the handset keypad. There is apparently an option for subscribers to use a prepaid card instead of a credit card for payment. 

With PayPal’s in-store service, users can enter their phone numbers and PINs on the POS terminals, and the purchase is then debited from their PayPal accounts in the cloud. PayPal has signed up home improvement chain Home Depot, with about 2,000 locations, and a few other merchants in the U.S. The new system is PayPal’s first attempt to expand its e-commerce payment service to the physical point of sale. The system also includes the option of plastic cards issued to PayPal account holders.

As with PayPal, a major challenge for Turkcell will be signing up enough merchants to accept the payments triggered by phone number entry in POS terminals. This requires some upgrade to the terminals, as well. Unlike Turkcell, PayPal does not also support NFC in its rollout.

NFC Early Adopter
Turkcell commercially launched NFC in April of 2011 and in July of that year introduced its first branded NFC phone, made by China-based Huawei, called the T20, and known elsewhere as the Huawei U8650NFC. It followed that in January of this year with the ZTE-made T11 NFC model and in July of 2012 with the ZTE-made MaxiPLUS5. All are affordable Android models.

Turkcell also introduced the wallet with the BlackBerry 9900, and sells other NFC phones that don’t support the wallet.

Four Turkish banks are offering NFC applications on the telco’s SIMs, Yapı Kredi, Garanti Bank, Akbank and Denizbank–the latter with a prepaid PayPass application. The operator plans to add two additional banks to the NFC service this year, Sener told NFC Times.

There is also a contactless-mobile toll-collection service available on the Turkcell-branded phones, and plans have called for mass-transit ticketing and loyalty and couponing applications. Turkcell also introduced NFC tags embedded in refrigerator magnets with its last self-branded NFC phone.

Cenk Bayrakdar, Turkcell’s chief new technology business officer, told Mobile Europe that while NFC hadn’t taken off as expected, Turkcell will also invest in larger NFC SIMs. Sener confirmed to NFC Times that the telco would launch a 512-kilobyte SIM card that would support both Visa payWave and MasterCard PayPass. Turkcell has used 256K SIMs for its NFC wallet.

To date, all NFC payment applications on Turkcell’s SIMs have supported only PayPass, and the MaxiPLUS5 is the first Turkcell-branded NFC phone that MasterCard has certified.

Still, it’s clear from the new wallet launch that Turkcell is seeking to expand the reach of its mobile-payment and m-commerce services, which it does not believe it can do only with NFC.

The operator would provide the wallet application to run on Android phones and soon on the iPhone. Subscribers could use the wallet with a SIM-based menu on other phones.

Besides NFC services, Turkcell has also offered a network-based funds transfer service in the past. It will bring both of these together in the new wallet, along with the soon-to-be launched face-to-face payments service and bill payment feature, as well as a new e-commerce service and offers.

The telco said e-commerce payments would be done in a similar way to the planned face-to-face payments service. Users would enter their mobile phone numbers while shopping online at participating Web sites. They get the pop-up screen on their mobile phones, and choose their payment card from the Turkcell Wallet, then enter a PIN. UPDATE: At launch there will be 30 Web merchants equipped to handle the e-commerce payments using subscriber phone numbers. END UPDATE.

Turkcell is working with large Turkish financial institution Garanti Bank to “realize all the payment functions” and plans to expand to other banks. Garanti is serving as acquirer and owns the POS terminals for the launch of face-to-face payments.

HEADLINE NEWS

OTI Reduces Growth Estimate and Pushes Back Positive EBITDA Prediction

Israeli-based NFC and contactless company On Track Innovations pushed back its prediction for positive adjusted EBITDA back to the third quarter of 2015 and reduced its estimate for 2014 revenue growth to 10%, down from the 30% it had predicted previously, the company reported in its quarterly earnings call.

DeviceFidelity Acquired by mPOS and Reader Component Supplier Kili

Canada-based Kili Technology, which supplies hardware modules, firmware and IP for mobile point of sale, readers and other payment-acceptance devices, has acquired NFC-accessories vendor DeviceFidelity.

Subway Eschews Exclusivity, Supports Multiple Mobile Wallets

NFC Times Exclusive: LAS VEGAS, Nev. – While a number of major U.S. merchants have pledged to only accept one mobile-payments service, that is not the case for giant Subway sandwich chain, which has now introduced at least three major options for its customers to pay with their smartphones.

AmEx and Discover Weigh In On HCE, Tokenization and Acceptance

Las Vegas, Nev. – No single mobile payments provider or platform will dominate the market in the long run, so card networks should adopt a flexible approach, CEOs of two major payment networks, American Express and Discover Financial Services, told attendees at this week’s Money 2020 conference.

Softcard Touts Rewards to Increase Wallet Activations; Insists it Will Support Wallet on iPhone SIMs

LAS VEGAS, Nev. – Softcard CEO Michael Abbott was selling the value of rewards in the telco-owned mobile wallet today during a keynote address at the Money 2020 conference in Las Vegas.

Despite Talk of NFC and BLE, QR Codes Expected as Main Technology for MCX Launch

Although Dekkers Davidson, CEO of the big MCX mobile-commerce consortium in the U.S., said the group is working on Bluetooth low energy and NFC, the main technology MCX is expected to launch with next year will still be QR codes.

MCX Weighs in on Exclusivity Clause as Merchant Group Battles Apple Pay

The MCX Merchant group has confirmed what most insiders already knew: That it has an exclusivity clause for members to only accept mobile payments from its own payments platform.

Taiwan’s NFC Banking Joint Venture Gets Set to Launch TSM Service Amid Crowded Field of Platforms

Nov 18 2014 (All day)

NFC Times Exclusive: More than 25 Taiwanese banks have signed up to potentially launch NFC mobile-payments services using a TSM platform being launched by a joint venture of three domestic processing and interbank groups.

Small Issuers Sign Up for Apple Pay but Want to Keep Customers Using the Issuers' Own Applications

NFC Times Exclusive: Small financial institutions want their members to be able to use Apple Pay, but would prefer to keep transactions in their own branded mobile applications instead, sources at participating credit unions have told NFC Times.

NXP Reports NFC Sales Soar on Shipments to Apple

NXP Semiconductors reported a big jump in sales from its emerging ID unit in the third quarter, thanks to shipments of NFC chips and secure elements to Apple for the tech giant’s new iPhones.

Amid High-Profile Win with Apple, NXP Quietly Loses NFC Business for Samsung’s Galaxy Handsets

NFC Times Exclusive: While NXP Semiconductors won the coveted contract to supply NFC chips and secure elements to Apple for its new iPhone models, it has been cut out of the recent business for Samsung Galaxy handsets, including the Note 4.

NFC Booster Chip in New iPhones One Key to Apple Pay Performance, Though Not Yet Standardized

NFC Times Exclusive: In what is believed to be one of the first uses for NFC booster technology in NFC phones, the new iPhone 6 and iPhone 6 Plus feature an amplifier chip enabling a unique antenna design by Apple for its Apple Pay service that launched Monday.