StarHub to pilot NTT’s Osaifu-Keitai m-wallet service

Singapore's StarHub has signed a Memorandum of Understanding with NTT DOCOMO to explore an m-wallet concept similar to Japan's renowned Osaifu-Keitai wallet (MPW 70, 81, 91) for future implementation in Singapore. Singapore is the first market outside of Japan to commence an official study and eventual pilot of this service.

Osaifu-Keitai means mobile wallet in Japanese. It is a trademark of NTT DOCOMO, which launched this service in Q3 2004, whereby the mobile phone is integrated with a contactless chip to offer m-payment and transaction services. These include electronic money, identity card, fare card for bus and train rides, credit card and loyalty card. This m-wallet application is also supported by other mobile service providers and accepted at more than 640,000 stores, making it the de facto standard for m-wallet service in Japan.

"Osaifu-Keitai is a powerful end-to-end system that has revolutionised mobile payment and commerce in Japan. It enhances customers' lifestyle by combining the functions of different types of smart card services in the mobile phone and bringing it to the users' fingertips," explains Takeshi Natsuno, senior VP and MD, multimedia services department, products and services division, NTT DOCOMO.

"Singapore has the right pieces in place to enable the mobile wallet feature - factors such as high mobile penetration rate, the presence of a powerful contactless payment infrastructure as well as savvy consumers. We are confident that this strategic collaboration will bring multiple synergies for both companies as well as accelerate the adoption of contactless services and applications in mobile markets globally.”

StarHub has been actively following the trends and developments in m-wallet, with the view of enhancing its current mobile offerings to customers. The m-wallet can provide more convenient services to the user than physical smart cards. For example, it can automatically provide the latest information such as loyalty points. It can also be used as a ticket for an event such as a movie or concert, by downloading an electronic ticket. The user can choose to install multiple applications, each equivalent to a different card, and carry with him at all times in a mobile phone.

"StarHub has been in the forefront in the development of contactless services and applications in Singapore. Together with EZ-Link, we have recently completed the largest user trial of Near Field Communications that has involved 1,000 participants to tap and pay for public transport, check balance enquiry and download information from smart posters," comments Ms Chua Siew Ling, head of payment and transaction services, StarHub. "We are delighted to be the first mobile operator outside Japan to test and pilot the Osaifu-Keitai service. We believe that this will help us to rapidly develop a premium infrastructure for contactless services and applications in Singapore and create a mobile wallet offering that will appeal to our customers.”

Currently, StarHub is in talks with EZ-Link to explore the integration of the EZ-link purse in the m-wallet service (MPW 105, 107). The EZ-link purse is a contactless smart chip with a pre-paid function that is able to transact quick, secure and exact payments at over 20,000 readers and terminals on Singapore's MRT, LRT, public buses and at retail locations such as McDonalds Restaurants and 7-Eleven stores across the nation.