STRATEGIC PARTNERS
May 22, 2002
SINGAPORE -- Visa International and SK Telecom (SKT) have signed an agreement to implement wireless payments that incorporate smart cards and infrared technology, in a move to allow consumers to conduct transactions using Visa debit or credit payments over mobile phones.
According to a news release, both companies will collaborate to implement a solution that integrates two major global specifications from the payments and wireless industries: the EMV (Europay-MasterCard-Visa) global smart card standard and IrFM (Infrared Financial Messaging), the global interoperable standard for infrared transmission.
The idea is to allow Visa cardholders and SKT subscribers to pay for goods and services by beaming an infrared signal from the mobile phone to a small infrared receiver located at point-of-sale terminals, vending machines, subway stalls, tollgates, buses and other payment locations. The cardholder's payment details are stored on an EMV chip within the handset.
Speaking at the ceremony announcing the partnership at SKT's headquarters in South Korea, Mark Burbidge, senior vice president and general manager of e-Visa Asia Pacific, said, "Our partnership with SKT combines the convenience of mobile phones with the wide acceptance of Visa cards."
Since April, SKT has been piloting a chip-based payment service using an infrared-enabled mobile phone. The pilot is being conducted at SKT's headquarters and by 20 merchants at the Seoul Finance Center. Later this year the program will be rolled out to more than 30,000 merchants in Korea. Two million infrared-enabled handsets will also be distributed by end of this year, according to the release.
Mobile and online shopping in Asia Pacific has grown rapidly during the past few years. The International Data Corporation (IDC) predicts the market for mobile commerce in Asia Pacific will reach US$36 billion by 2004. The Visa and SKT initiative directly caters for this burgeoning market and is just part of Visa's efforts to offer greater flexibility and convenience to its cardholders.
