In an aggressive move, telecom giant Vodafone is deploying its m-payment service throughout Europe. The Vodafone Wallet, which launched is Spain earlier this month, comes to Germany in the next few days, followed by the Netherlands, U.K. and Italy in the spring.
The London-based carrier plans to roll out the system to its entire European footprint. Dr. Jae Chung, president and CEO of CorFire, which is supplying the wallet’s mCommerce platform, called it “one of the largest mobile wallet deployments in history.”
Vodafone Wallet allows customers to use their smartphones to make contactless purchases at stores, redeem offers and purchase transportation tickets. The wallet is based on the SmartPass app, which Vodafone co-developed with Visa, and includes both Near Field Communication (NFC) and non-NFC technology. Customers who don’t have an NFC device can still download the app and apply for an NFC tag to attach to their handset.
“The new Vodafone Wallet will give our customers a convenient, simple and secure way of managing a range of everyday transactions with their smartphone,” said Christian Wirtz, Vodafone’s mCommerce director, in a press release.
Vodafone appears to be getting the jump on many major m-payment competitors in Europe, where services such as Google Wallet are not yet available. The telecom will face competition in some markets, however, such as in its home base of the U.K. where rival operator EE has already launched a similar service.
Consumer interest in mobile payments is growing globally, according to a recent report by the market research firm yStats. This year, mobile payments are predicted to reach more than €150 billion (approximately $206.3 billion) worldwide, and double-digit growth is forecasted for the next four years.
The European market has been problematic this year for Vodafone. The telecom noted in its half year earnings report that its European operations continued to experience “intense macroeconomic, regulatory and competitive pressures during the period.”
Still Vodafone is planning to invest heavily in the region with a planned $4.8 billion spending plan through its Project Spring initiative to expand 3G coverage and capacity and accelerate development of its 4G network.
