Mobile payments to be offered by O2 and Vodafone

German mobile operators O2 and Vodafone are introducing a new mobile payment service to be branded as mpass. The newly offered service will include the proven direct debiting scheme along with an SMS payment confirmation on the mobile phone.

It will work this way. A customer will be able to order an item in the Internet shop or via mobile portal. He/she should enter the mobile number and an mpass PIN of their choice.

The system will be subsequently sending the customers an SMS which should be confirmed, after which the amount is debited from the customer’s bank account automatically.

O2 and Vodafone state that the payments made through their communications media will be secure as long as there will be no need in entering sensitive and personal data like bank details and credit card numbers.