BARCELONA - Deutsche Telekom, the parent company of T-Mobile, will launch a near-field communication (NFC) service known as "mobile wallet" in Europe this year, with a planned roll-out in the U.S. and beyond next year, the company announced here at Mobile World Congress.
With NFC, cell phone users can turn their devices into a virtual wallet. The technology encrypts data for short-range transmissions; usually a few inches. The idea has been in the works for years, but got a boost last year in the states with the introduction of ISIS, a national phone payment system spearheaded by T-Mobile, Verizon, and AT&T.
It will be through ISIS that Deutsche Telekom brings its "mobile wallet" service to the U.S. via T-Mobile, the company said today. It will launch in Germany and Poland in 2011, and in the U.S., the Netherlands, and the Czech Republic in 2012. In Germany, Deutsche is working with Vodafone and O2 on the joint payment system known as mpass, which will be used for ticketing during the European Football Championship in 2012, among other things. In the Netherlands, Deutsche is working with two unnamed operators and three banks on mobile wallet.
NFC phones will be available from Apple, Samsung, Research in Motion, and LG this year, according to Phonescoop.
"Mobile wallet" will allow for payment on Deutsche services, as well as those from third parties, like banks, travel companies, and event organizers. Buy a coffee, subway pass, or tickets to a concert without every pulling out your physical wallet.
"Customers will not accept isolated solutions," Thomas Kiessling, chief product and innovation officer at Deutsche Telekom, said in a statement. "They want to be able to pay as they could in terms of cash or credit card. And with the 'Mobile Wallet' we can offer our customers convenient and secure mobile payment."
On the security front, Deutsche promised solutions that are protected across the device - to the SIM card and mobile transmission technology. There will also be the option to lock apps and data in the case of theft or loss.
For Deutsche, the move comes after the company's 2010 acquisition of Internet payment system Firstgate.
Also on Monday, Deutsche Telekom announced that it will offer a flat-rate data roaming package in the European Union. Customers access the Internet throughout the region for 1.95 Euros per day or 14.95 Euros per week starting this summer.