News

UK initiative to bring ATM functionality to mobile phones

September 17, 2003

LONDON - Mobile phones will gain some of the abilities of ATMs -- although not cash withdrawals -- if a discussed partnership between the Link ATM network and MChex, a subsidiary of IT services group Morse, comes to fruition.

The venture, known as MobileATM, is reportedly in talks with several mobile phone companies and hopes to have a service in place by Christmas, according to a report in The Guardian.

MobileATM, which uses technology modeled on existing ATM standards, will allow owners of mobile phones to use their existing PINs to access a range of services.

Initially customers will be able to check their balance as if they were in front of an ATM. In the longer term, MobileATM may offer a range of transactions, such as the capacity to top up mobile phone pre-paid cards.

The involvement of Link, which operates the UK's network of ATMs, sets the plan apart from some of the previous attempts to turn mobile phones into transaction devices because it gives MobileATM a direct link with the country's banking network.

According to the Guardian, other so-called m-commerce initiatives have asked customers to remember new PINs or enter credit card details on a Web site.

MobileATM director Alastair Lukies said the proposed service will give mobile commerce the security of the ATM network.

"Imagine if you're out on a date and about to pick up the bill but unsure whether you have enough cash in the bank. Rather than risking the humiliation of having your bank card rejected, you can check if your balance will cover the bill with MobileATM," he told the Guardian.

The fledgling partnership marks a major shift in strategy for Morse, which is looking to beef up its intellectual property assets and move away from the pure IT services market.

Morse shares have gained more than 50 percent so far in 2003 as technology stocks have returned to favor. In August Morse said it was entering its new financial year with a "cautious and conservative approach" -- but analysts pointed out that with more than £75 million (about $121.4 million U.S.) of cash, it has plenty of room for new investments.