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Visa and SKT Launch First Wireless Payment System

5/23/2002

Singapore - 23 May, 2002 (PRN):Visa International and SK Telecom (SKT) have signed an agreement to implement wireless payments that incorporate smart cards and infrared technology, in a move to provide consumers with greater convenience to conduct transactions anytime, anywhere using Visa debit or credit payments over mobile phones.

Both companies will collaborate to implement an innovative payment solution that integrates two major global specifications from the payments and wireless industries: the EMV (Europay-MasterCard-Visa) global smart card standard and IrFM (Infrared Financial Messaging), the global interoperable standard for infrared transmission. The solution allows Visa cardholders and SKT subscribers to pay for goods and services by beaming an infrared signal securely from the mobile phone to a small infrared receiver located at retail point-of-sale terminals, vending machines, subway stalls, tollgates, buses and other payment locations. The cardholder's payment details are stored securely on an EMV chip within the handset.

This partnership between the two market leaders was signed on Monday at a signing ceremony held at SKT's headquarters in Korea.

Speaking at the ceremony, Mark Burbidge, Senior Vice President and General Manager, e-Visa Asia Pacific, said, "Our partnership with SKT combines the strengths of the payments and mobile worlds with the convenience of mobile phones with the wide acceptance of Visa cards. The payment industry is undergoing a major transition from the use of magnetic stripe cards to EMV smart cards. These provide greater security and give customers a wide range of new payment functions. Visa and SKT are using the extra capabilities of smart cards to enable Visa cardholders to make payments with their mobile devices easily and securely."

SKT is the first company in the world to implement EMV-based infrared technology for wireless payments. Since 8 April 2002, SKT has been piloting a chip-based payment service using an infrared-enabled mobile phone. The pilot program is being held at SKT's headquarters and by 20 merchants at the Seoul Finance Center. Later this year the program will be rolled out to more than 30,000 merchants in Korea. Two million infrared-enabled handsets will also be distributed by end of this year.

Mobile and online shopping in Asia Pacific has grown rapidly during the past few years. The International Data Corporation (IDC) predicts the market for mobile commerce in Asia Pacific will reach US$36 billion by 2004. The Visa and SKT initiative directly caters for this burgeoning market and is just part of Visa's efforts to offer greater flexibility and convenience to its cardholders.

Visa International

Visa is the world's leading payment brand. Visa-branded cards generate more than US$2 trillion in annual volume and are accepted at more than 24 million physical locations around the world, including more than 750,000 ATMs. The Visa organization plays a pivotal role in developing innovative payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce -- the ability to conduct commerce anywhere, anytime, and any way. For more information, visit www.corporate.visa.com.

Visa Asia Pacific

In Asia Pacific, Visa has a greater market share than all other brands combined with more than 56 percent of retail sales volume. During 2001, a total of US$480 billion was spent in Asia Pacific using Visa cards, a growth of 70 percent over the previous year. Visa Asia Pacific's Internet address is www.visa-asia.com.

About EMV

EMV stands for Europay-MasterCard-Visa, a joint industry working group created to facilitate the introduction of chip technology into the international payment systems environment by developing joint specifications for Integrated Circuit Cards (ICC) and terminals for Payment Systems. EMV serves as the global framework for chip card and terminal manufacturers worldwide.