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Press Release
SK Telecom Enters Full Cooperation Agreement with Visa International for Commercializing 3G-based Financial Services.
2007.02.08 PrintA large-scale commercial service for issuing a USIM chip-based credit card via a wireless network will be launched in Korea by the first half of this year.
This service will also be available in foreign countries such as the U.S., Malaysia and Taiwan.
Overseas cooperation activities will include efforts to establish global standards for OTA personalization based on the platform being utilized in the SK Telecom -Visa program.
A traditional credit card is no longer required. SK Telecom customers are now able to make payments through a mobile phone, in place of a credit card, while abroad.
Today SK Telecom and Visa International (CEO: Kenneth Sommer, www.visa.com) announced plans to launch what they expect to be the world’s first contactless payment application on a Universal Subscriber Identify Module (USIM) card which is personalized ’over-the-air’ (OTA). A ceremony for establishing a strategic partnership between the two companies will take place during the 3GSM World Congress 2007, in Barcelona , Spain .
SK Telecom and Visa International will implement this large-scale commercial service in Korea with an OTA solution based on Visa’s recently announced mobile platform. The two companies also agreed to jointly develop new business models and seek business opportunities overseas, by enlarging the OTA-based USIM service. Overseas cooperation activities will include efforts to establish global standards for OTA personalization based on the platform being utilized in the SK Telecom - Visa program.
Using SK Telecom 3G phones, the launch is planned to initially involve only SK Telecom subscribers. They will be able to install the Visa contactless payment application directly onto their handsets via OTA without having to visit their bank. The user simply sends a message to the bank requesting a Visa payment application. The bank then sends the application through the mobile internet into the secure USIM chip. While the payment application resides on the subscribers’ USIM card, they will not be restricted to making payments only from that device. SK Telecom 3G subscribers who wish to change to a new handset need only move the USIM card to the new device.
This service will be available in foreign countries such as the U.S., Malaysia and Taiwan where the Visa contactless payment-reading devices are installed. Thus, SK Telecom subscribers will be able to enjoy streaming video calls and wireless Internet service as well as credit card service through their mobile phone, while abroad. By introducing this service SK Telecom plans to promote 3G USIM-based financial transaction services in the domestic mobile payment market, as well as 2G IC chip-based mobile financial services.
SK Telecom and Visa International have agreed to jointly develop a mobile payment standard that will enable users to issue a USIM chip-based credit card via a wireless network, and establish it as a global standard through cooperation with international standard organizations such as the GSM Association and ’Global Platform’.
"This strategic alliance has great significance because a mobile operator and an international financial firm have entered into a full cooperation agreement that promotes the USIM chip-based mobile payment services. Our work with Visa International has already generated a great deal of experience in mobile payments. "We plan to extend the mobile financial service to all the financial transaction areas such as stock trading and banking, as well as make strong entry into the global financial market.” said Joo Sik Lee, senior vice president of SK Telecom. “This service will certainly be a success story that creates value through the combination of mobile communications services with payment services” said Young Jong Kim, president of Visa Korea.
To date, a total of 50,000 contactless payment-reading devices have been installed in E-marts, Shinsegae Department Stores and the Kyobo Boo Center in Korea. About 150,000 devices will be installed in other stores by the end of the first half of 2007.
Today SK Telecom and Visa International (CEO: Kenneth Sommer, www.visa.com) announced plans to launch what they expect to be the world’s first contactless payment application on a Universal Subscriber Identify Module (USIM) card which is personalized ’over-the-air’ (OTA). A ceremony for establishing a strategic partnership between the two companies will take place during the 3GSM World Congress 2007, in Barcelona , Spain .
SK Telecom and Visa International will implement this large-scale commercial service in Korea with an OTA solution based on Visa’s recently announced mobile platform. The two companies also agreed to jointly develop new business models and seek business opportunities overseas, by enlarging the OTA-based USIM service. Overseas cooperation activities will include efforts to establish global standards for OTA personalization based on the platform being utilized in the SK Telecom - Visa program.
Using SK Telecom 3G phones, the launch is planned to initially involve only SK Telecom subscribers. They will be able to install the Visa contactless payment application directly onto their handsets via OTA without having to visit their bank. The user simply sends a message to the bank requesting a Visa payment application. The bank then sends the application through the mobile internet into the secure USIM chip. While the payment application resides on the subscribers’ USIM card, they will not be restricted to making payments only from that device. SK Telecom 3G subscribers who wish to change to a new handset need only move the USIM card to the new device.
This service will be available in foreign countries such as the U.S., Malaysia and Taiwan where the Visa contactless payment-reading devices are installed. Thus, SK Telecom subscribers will be able to enjoy streaming video calls and wireless Internet service as well as credit card service through their mobile phone, while abroad. By introducing this service SK Telecom plans to promote 3G USIM-based financial transaction services in the domestic mobile payment market, as well as 2G IC chip-based mobile financial services.
SK Telecom and Visa International have agreed to jointly develop a mobile payment standard that will enable users to issue a USIM chip-based credit card via a wireless network, and establish it as a global standard through cooperation with international standard organizations such as the GSM Association and ’Global Platform’.
"This strategic alliance has great significance because a mobile operator and an international financial firm have entered into a full cooperation agreement that promotes the USIM chip-based mobile payment services. Our work with Visa International has already generated a great deal of experience in mobile payments. "We plan to extend the mobile financial service to all the financial transaction areas such as stock trading and banking, as well as make strong entry into the global financial market.” said Joo Sik Lee, senior vice president of SK Telecom. “This service will certainly be a success story that creates value through the combination of mobile communications services with payment services” said Young Jong Kim, president of Visa Korea.
To date, a total of 50,000 contactless payment-reading devices have been installed in E-marts, Shinsegae Department Stores and the Kyobo Boo Center in Korea. About 150,000 devices will be installed in other stores by the end of the first half of 2007.