UK Networks Team Up for NFC System

NFC might not be all the rage just yet, but mobile manufacturers, wireless operators and retailers want to be ready when it is.

Over the last few months, NFC payments have been a major topic of discussion in the smartphone space. Google just recently announced an NFC trial (Google Wallet), and both Amazon and Apple are also rumoured to be working on mobile payment services. Here at home, Orange and Barclaycard kicked off their own small service just last month and this week, the country’s major carriers announced they're teaming up for a joint NFC venture.

Vodafone, O2, and Everything Everywhere (which owns both T-Mobile and Orange) have announced plans to develop a mobile payments service that will be compatible across all of their networks regardless of the device a customer is using. The venture will serve as a one-stop-shop for businesses, advertisers and banks that want to enter the mobile payments arena.

"This groundbreaking new business will unlock the true potential of commerce in the wire-free world," said Tom Alexander, CEO of Everything Everywhere.

"Currently people take their mobile, wallet and keys when they leave home," said Vodafone UK Chief Guy Laurence. "In the near future, people will now start leaving their wallet at home, and in the mid term their keys may also be integrated into their mobile as NFC allows the mobile to act as a digital access card. The joint venture is the next phase in realising that ambition."

While Vodafone, 02 and Everything Everywhere are palling up in the corner, 3UK isn’t happy it was left out of the equation. The network told ZDNet in no uncertain terms that it would have loved to have been a part of the venture but wasn’t asked. ZDNet contacted O2 to enquire about 3UK’s exclusion and was told that "it is felt that Telefonica UK, Everything Everywhere and Vodafone were the right companies to bring into the full standalone [joint venture]". The spokesperson for O2 added that 3UK was welcome to join the venture as a customer.

The proposed venture will have to obtain all the necessary regulatory approvals before being allowed to proceed.