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October 04, 2007

LogicaCMG to Pilot Mobile Phone Payment System in Dutch Supermarket

By Anuradha Shukla, TMCnet Contributing Editor

LogicaCMG (News - Alert) has announced details of a pilot project at a branch of the Dutch supermarket, C1000 in Molenaarsgraaf, near Rotterdam. The six-month pilot will enable 100 customers to pay for their shopping by mobile phone. This open innovation initiative is spearheaded by LogicaCMG and Schuitema, owners of the C1000 supermarket chain, in close cooperation with Rabobank, KPN, NXP Semiconductors (News - Alert) and RFID Platform Nederland.



 
The convenient payment system is one of the first European mobile payments applications that is directly linked to online debit accounts. Customers can simply take their mobile phone and no longer have to carry cash or debit cards to pay for shopping.
The solution utilizes the existing online PIN payment infrastructure. The debit card is replaced by a mobile phone, which is equipped with NFC technology (Near Field Communication) supporting contact-free exchange of information, such as payments, over a short distance. 
 
Customers participating in the pilot can pay for their groceries by simply holding the mobile phone next to the NFC reader at the checkout and entering their individual PIN. Bottle deposit refunds can also be stored on the phone.
 
“We are on the verge of a revolution in how we will use our mobile phones going forward in Europe,” said Gerben Mak, innovation director from LogicaCMG in the Netherlands in a statement.
 
Mak said that they have gained momentum due to a combination of increasingly mobile savvy generations, emerging technological advancements such as NFC, and a timeframe of crucial developments in banking infrastructure across Europe such as the Single Euro Payments Area. He added that the ability to pay by mobile phone is not in itself revolutionary, but what it paves the way for will be.
 
 
 
Anuradha Shukla is a contributing writer for TMCnet covering call centers, CRM and information technology.
 


 







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