Everything Everywhere, O2 and Vodafone have announced plans to create a standalone m-commerce joint venture in the UK.
The new entity, the first of its kind in the UK, will bring together the expertise and technology of the operators, which they say will accelerate development and delivery of new mobile marketing and payment services.
The as yet unnamed joint venture is subject to competition clearance but is aiming to launch before the end of the year.
It will provide a single contact for advertisers, marketing partners, retailers and banks, making it easier to create m-commerce products and services. It will be open and available to all industry participants.
The joint venture said it will deliver the technology required for the 'speedy adoption' of mobile wallet and payments. It added that 'this will enable consumers to transfer their entire physical wallet into a new secure, Sim-based wallet regardless of which NFC enabled mobile device, or mobile network they are using.’
The new business will also provide a single contact point for advertisers, media agencies and retailers looking to reach consumers on their mobile phones. It will enable them to book advertising space and create campaigns as well as provide offers, coupons and loyalty cards which can be stored on the phone and redeemed in shops.
Meanwhile, consumers will be able to receive discounts and offers from brands that are relevant to them.
Everything Everywhere, O2 and Vodafone will continue to develop their own competing products and services tailored to their own customers, which will be based on the open platform infrastructure provided by the joint venture.
Everything Everywhere CEO Tom Alexander said: ‘This groundbreaking new business will unlock the true potential of commerce in the wire-free world.
‘The benefits will be felt across the whole industry, allowing people to manage their money and make payments using their handsets, helping advertisers reach their customers on the move, and helping banks provide their clients with an easy and convenient way of making payments.
‘And for partners operating in these industries, having a one-stop shop to deal with will make things quicker, easier and more efficient. This joint venture will further reinforce mobile as the essential 21st Century device at the heart of people's daily lives.’
O2 CEO Ronan Dunne said: ‘We are seeing an explosion in the m-commerce market. Mobile advertising spend alone has more than doubled in two years as consumers embrace marketing on their handsets because it is now relevant to them and provides a great customer experience.
‘The mobile marketing and payments market is extremely fragmented. By creating this new business we will underpin this nascent market, providing real size and scale, allowing consumers to benefit from new and innovative services, like the mobile wallet, and giving them more of the things they value through offers and deals that are truly relevant to them. At the same time, business customers will reach a vastly increased audience, utilising a single platform for sales, delivery and payment.
‘This is not just something that is unique in the UK, but a joint venture that will create a model that many countries around the world could follow.'
Vodafone CEO Guy Laurence said: ‘Since Vodafone made the first ever call just 26 years ago, mobile phones have transformed people’s lives. Along the way, the mobile phone has become the one item people really cannot be without. It is the first thing they reach for in the morning and the last thing they check at night. Over recent years it has integrated new gadgets such as digital cameras and music players as they have become popular. The new generation of smartphones is even taking on desktop PC by providing internet on the move and removing the need to be in the home or office.
‘Currently people take their mobile, wallet and keys when they leave home. In the near future, people will now start leaving their wallet at home, and in the mid term their keys may also be integrated into their mobile as NFC allows the mobile to act as a digital access card. The joint venture is the next phase in realising that ambition.’
Editor: Kate Oflaherty