Big four networks team up for mobile payments

T-Mobile, Orange, O2, and Vodafone have teamed up on mobile payments and advertising.

The operators have created a standalone joint venture to develop a single system for mobile payments as well as advertising, letting retailers go through a single company to reach the firms' customers, regardless of the device they're using.

The joint venture will come up with the standards, technology and interfaces to run mobile payments, as well as create a centralised sales division to work with retailers and advertisers.

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The system won't actually process payments, but will provide the necessary platform to banks and retailers to let consumers shop with their phones.

"This venture is not taking a banking licence," explained Ronan Dunne, CEO of O2-owner Telefonica. "It will be enabling the payments systems that work today. Any bank can enable its physical products to be virtualised onto mobile wallets, rather than have to do it individually to all the operators."

While smaller rival Three is the only UK mobile operator not in on the project, that doesn't mean its customers will necessarily be left out.

"There will be opportunities for other players, for Three, or Virgin or other MVNOs, to buy the services off this entity, as our companies will," said Tom Alexander, CEO Everything Everywhere - the parent company of T-Mobile and Orange.

Alexander admitted it was unusual to have "arch rivals and competitors" teaming up, but said it was necessary to move the technology forward.

The joint venture is hoping to launch by the end of the year, subject to regulatory approval.