Sony, NTT DoCoMo team on mobile payments

Sony and NTT DoCoMo have agreed to develop a new system that will enable mobile phone users to enjoy services currently available only with integrated circuit (IC) cards.

The new company, FeliCa Networks Inc., will be established in January 2004 to launch the new services, which will combine Sony’s contactless IC card technology called FeliCa and NTT DoCoMo’s mobile multimedia expertise.

NTT DoCoMo will begin the new services on a trial basis in December using some 6,000 cell phones.

Announcing the agreement at a press conference, NTT DoCoMo President Keiji Tachikawa said the joint project will “diversify the use of mobile phones.”

Sony Chairman Nobuyuki Idei said the new services will “make life more convenient.”

Under the agreement, the new company will have a start-up capital of about 6 billion yen and undertake the development, manufacturing and sales licensing of mobile FeliCa IC chips as well as operation of the new services’ platform.

Sony will own a 60% stake and NTT DoCoMo the remainder.

The two companies said they will continue to finalize the details of the joint venture.

The new services will provide customers with mobile phone IC card services such as transport system payments, electronic money and personal identification security, Sony and NTT DoCoMo said.

In addition, they envision using the telecom infrastructure for mobile phones to provide new capabilities such as the direct downloading of prepaid money and content-based data.

Potential applications of the technology could include electronic ticketing and online credit, which would provide convenience and added value for both providers and customers, they added.

Sony began developing the FeliCa technology in 1988. It became widespread after being introduced in transport systems in Hong Kong, and services using it include East Japan Railway Co.’s Suica system and the Edy electronic money service.

Source: Kyodo News