Nokia buys $70 million stocks in Obopay

Nokia Corp. has bought a stake in the payments technology company Obopay Inc. According to Obopay "this investment is a resounding endorsement for Obopay's ongoing innovation in mobile money technology." Obopay has also named Teppo Paavola, vice president and head of Corporate Business Development at Nokia, to its board of directors.

"This investment is a landmark in the evolution of mobile payments. It underscores the global potential of mobile money by providing convenient access to money anytime, anywhere. Given Nokia's position as the leader in mobile communications, we could not have asked for a better investor," commented Obopay CEO Carol Realini. 

The seize of the investment was unclosed neither by Nokia nor by Obopay but according to the published reports it could make up about $70 million in preferred stock. Obopay is going to use this investment for aggressively improving their product suite and enhancing their global presence.

"This is a big deal for financial institutions," said Richard K. Crone, the founder of Crone Consulting. "If somebody else is provisioning the application before it gets to the consumer, that affects how the bank can provide its suite of services."

"Fund transfers and person-to-person are only niche markets," he said. “The point of sale is "where these companies are going to make their money."