First Data Corp. yesterday signed a partnership agreement with a Korean company to provide mobile payments services in the first quarter of 2011, said Chris Cox, vice president of mobile product development.
First Data, the world’s largest merchant acquirer, has partnered with SK C&C USA, the American subsidiary of SK C&C Co. Ltd., that has provided mobile payment services in South Korea to 20 million people since 2002, Cox said.
SK C&C USA, which in April opened its headquarters in Atlanta, is integrating its mobile payments product into First Data’s Trusted Service Manager platform.
The Trusted Service Manager is designed to facilitate adoption of Near Field Communication services by creating a transparent mobile payments platform. The platform brings multi-account services to different mobile devices that are accessed through a variety of proprietary networks.
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The SK C&C Trusted Service Manager platform will enable First Data’s merchant customers to securely issue credit, debit, prepaid and gift cards to their mobile phones.
“First Data wants to sign up merchants to accept mobile payments, and this [The Trusted Service Manager] builds out the infrastructure,” said Aaron McPherson, research director for payments at Financial Insights in Framingham, Mass.
Mobile commerce is a way of life in Korea, said Shin Bae Kim, president and CEO of SK C&C Ltd.
“Our partnership with First Data will expedite the widespread adoption of mobile commerce and evolve it to the next level by bringing a feature-rich mobile commerce experience to the U.S. market,” he said.
With mobile payments, customers using a mobile phone equipped with microSD card, a SIM card or embedded chip card can hold their mobile phone near a contactless point-of-sale terminal to pay for purchases. Smart-phone owners also would be able to download coupons onto their phones to pay for purchases.
“We’re replacing your leather wallet with your mobile phone,” Cox said.
First Data announced its partnership with SK C&C USA the same week Bank of America, U.S. Bancorp, Wells Fargo & Co. and Visa Inc. launched their mobile payments pilot in New York City. The pilot is scheduled to last to the end of the year.
