Union Mobile Pay (UMP), China’s largest mobile phone-based banking
and payments service supplier, has deployed the US technology
developer’s M-Wallet mobile banking and payments solution. Included
in the deployment is Motorola’s back-office management platform
providing interoperability between mobile network operators (MNO),
banks and merchants.
For consumers, Motorola’s M-Wallet provides banking functions
such as money transfers, bill payments, utility payments and
account inquiries. In addition, M-Wallet facilitates electronic
ticketing and business-to-consumer solutions for merchants such as
electronic coupons and prepaid cards.
For its M-Wallet solution, Motorola adopted Java-based
technology, shunning more widely used-and-proved technologies such
as short message service, unstructured supplementary service data
and wireless application protocol.
“Motorola’s M-Wallet solution provides enhanced user interface
with secure and reliable service as compared to existing
technologies,” Motorola claimed in a statement.
Struggling with a slumping share of the global mobile phone
market, Motorola will be hoping its claims hold up given the huge
clout UMP has in China’s fast-growing mobile banking and payments
UMP was established in 2003 as a joint venture between China
UnionPay, China’s only card organisation, and China Mobile
Communications Corporation (CMCC).With 400 million subscribers,
CMCC has a market share of about 66 percent.
UMP has the only mobile payment platform with a direct
connection to CMCC and covers 14 out of the country’s 16 major
banks. UMP’s mobile payments platform ended 2007 with 50 million
registered users, according to Motorola.
The UMP deal comes at a time when Motorola finds itself under
severe profit pressure, warning in early-January it would report a
net loss for the fourth quarter of 2008. Motorola also announced
the layoff 4,000 workers in addition to the 3,000 laid off in 2008.
Staff cuts are aimed at generating cost savings of $1.5 billion in