Sign in Subscribe
Telecommunications equipment industry

Motorola Announces Field Trial of Mobile Phones with MasterCard's PayPass Technology

Strategic Insights

— 1 min read

Motorola is set to conduct a field trial of mobile phones equipped with MasterCard's PayPass technology, a new contactless payment option. This innovative solution aims to simplify and speed up transactions using mobile phones as a convenient, fast, and secure method of payment. The phones will feature a range of security measures to protect financial data, ensuring a secure financial transaction experience for consumers. According to Art Kranzley, executive vice president and chief e-Business officer at MasterCard International, this technology will provide consumers with a unique way to pay using their mobile phone, which they carry with them wherever they go.

Key Takeaways:

  • Motorola will conduct a field trial of mobile phones enabled with MasterCard PayPass technology, allowing consumers to make contactless payments using their mobile phones.
  • The phones will incorporate a range of security features to protect financial data and ensure secure financial transactions.
  • The technology will enable consumers to use their mobile phones as a contactless reader, paving the way for various marketing and promotional applications.
  • Applications can be loaded into the secure area of the phone "over the air," offering operational savings and revenue opportunities to card issuing financial institutions and wireless network operators.
  • The feature is based on Near Field Communications (NFC) technology, which enables devices to run multiple proximity applications, including payment.
  • The Motorola phones are expected to be trialed by the end of 2004 in various locations in the U.S.
  • The field trial aims to test the convenience, speed, and security of the PayPass technology in everyday life.
  • The technology has the potential to be lifestyle-changing, enabling consumers to use their phones as a wallet, keychain, and ID.

Statistics:

  • MasterCard consumer research showed that 70% of consumers found contactless payments to be extremely appealing (Source: MasterCard International).

*Consumer research also showed that mobile phones, based on convenience and uniqueness, are the preferred form factor for PayPass technology (Source: MasterCard International).

  • The MasterCard Priceless advertising campaign is seen in 96 countries and 47 languages, giving the MasterCard brand a global reach (Source: MasterCard International).
  • Motorola's sales in 2003 were US$27.1 billion (Source: Motorola, Inc.).

Sources:

  • Motorola, Inc., "Motorola Creates Innovative Technological Solutions, Beyond Mobile Phones" (press release), issued 2004.
  • MasterCard International, "MasterCard Priceless: Advertising Campaign Launched" (press release), issued 2004.
  • MasterCard International, "About Us" (webpage), accessed 2004.
  • Motorola, Inc., "About Us" (webpage), accessed 2004.

Read more