Smartphone-based secure payments in pipeline
Mobile banking startup, MoBank has taken on board another round of funding to develop a smartphone-based mobile commerce gateway for secure access to a range of personal banking, ticket booking and pay-as-you-go download services.
The company, which has been set up by former executives of online financial services pioneers First Direct and Egg, will launch in February 2009. The first offering will be a proprietary transactions service that lets people buy and pay for products from retailers, via a mobile phone.
MoBank’s CEO Steve Townend said that the investment will be used to continue developing the service through 2009. Mobile banking and money manager services will follow the launch offers.
Eventually, the service could be used by subscribers to buy cinema and train tickets, download music and other types of premium content, to pay bills, or to transfer money between specific banking accounts.
It works by connecting a smartphone user directly with a secure payments system. A PIN number is punched into a mobile to pay a bill or to buy goods or services, without any need for the usual 16-digit credit or debit card number to validate every transaction.
MoBank has explained that because no personal account numbers or card details need to be stored on the mobile, the system is secure as well as quick and easy to use.
MoBank services will be available first on iPhones and soon after that on Java, Google and Blackberry phones.