Telecom, Vodafone, 2degrees cut credit cards out of picture with pay-by-mobile plan

"Payforit", based on a system already operating in the UK, allows online purchases to be added to your phone account, cutting credit card companies and banks out of the picture - although initially it's restricted to maximum payments of just $10.

Telecom, Vodafone and 2degrees reached their "Payforit" consensus through the Telecommunications Carriers Forum (TCF), which has developed what is officially known as the  developed the Payforit Trusted Mobile Payments Framework.

A Telecom spokesman told NBR Payforit is available to retailers now.

So far, none of the three telcos have named any participating retailers, although the service is live for content and apps purchased through the Telecom-Yahoo TWorld download service, the spokesman said. (Vodafone had no immediate comment.)

The TCF's Clare Dobson told NBR "The other carriers are working through their own timelines and I am not yet aware of when they are expecting to launch their service."

While the $10 limit is essayed on the Payforit official website, Ms Dobson said, "The minimum or maximum payment will be at the discretion of the Operators depending on their service product.

"In the UK some of the operators are already expanding into other areas having a joint relationship with another retail organisation," Ms Dobson said.

For example, one operator has joined with Dominos so their customers can order a pizza and it will be charged to their mobile phone."

RAW DATA: The TCF's release:

New framework allows customers to “Payforit” by mobile phone

New Zealand’s mobile phone operators have agreed to a framework that will make it possible for customers to purchase applications and digital content through a safe payment environment on their phone and have the charge added to their phone bill.

2degrees, Telecom, TUANZ and Vodafone are members of the Telecommunications Carriers’ Forum (TCF) Working Party, which has developed the Payforit Trusted Mobile Payments Framework to provide another safe and trustworthy environment for customers to make low-cost purchases using their mobile phones.

TCF CEO David Stone says that by proactively adopting the Payforit scheme, New Zealand’s mobile operators will continue to ensure a consistent transparent and user-friendly experience for customers making purchases by mobile phone.

“We anticipate that this will encourage consumer confidence in paying by mobile for content and services, and in turn generate repeat business and growth in conversion rates for content providers.”

Customers using Payforit do not need a credit card or bank account to use the service, nor do they need to sign up or register any details. The whole process can be done using their phone and purchases are charged back to their mobile account.

The framework is based on the British Payforit service which was introduced in 2006. It allows customers to purchase content and have the charge added to their phone bill or, in the case of pre-pay customers, taken off their account balance. The payment process is managed by Accredited Payment Intermediaries (APIs).

Mr Stone says that APIs who want to participate in the New Zealand scheme must adhere to the standards and guidelines laid out in the framework. One of their key responsibilities will be presenting on-screen payment pages, which includes the PayforitNZ logo, to the end users. The content on these pages clearly detail particular information which must be the same across all APIs and participating mobile networks.

This information that APIs provide and the appearance of the “PayforitNZ” logo, will indicate to customers that they are operating within the Trusted Mobile Payments Framework environment.

For information about the Payforit Trusted Mobile Payments Framework, go to: www.payforit.org.nz