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Ericsson in cooperation with Eurocard AB in Sweden to test Bluetoothtm based wireless payment
Posted: 05-Apr-2001 [Source: Ericsson press release]

[Testing to be conducted involving wireless payment method between R520m incorporating the virtual Eurocard and a store's cash register.]

Ericsson's R520m mobile telephone, which incorporates Bluetooth wireless technology, will be tested for wireless payment in Swedish stores. In May, selected Eurocard customers will test the method of paying for purchases using a virtual Eurocard in their Ericsson R520m.

Bluetooth makes it possible to transmit wireless data over short distances, quickly and free of charge - in this case, between the purchaser's Ericsson mobile phone, which incorporates the virtual Eurocard, and the store's cash register.

"The attempt is based on an Ericsson-developed payment platform for financial transactions using Bluetooth. It is an example of how the new wireless Internet technology can be used for users' everyday tasks," says Orvar Parling, vice president, Ericsson Sverige AB.

Eurocard AB in Sweden wants to determine whether customers experience payment via mobile phone as simpler, faster and more convenient than other payment methods such as cash and cards.

"For the customer, paying for purchases using a Bluetooth equipped mobile phone will enable them to pass through the store check-out much faster. If there is a line-up, the wait will be shortened considerably which benefits both customers and stores. Payment by Bluetooth equipped mobile phone can shorten the payment procedure by half. Customers can also be informed of any special offers the stores may have at the particular time via their mobile telephones," says Synnove Trygg, president of Eurocard AB in Sweden.

"For the stores, payment by mobile phone with Bluetooth enables them to serve more customers in shorter time. Since purchases are confirmed using PIN codes, there is no need for the stores to check customers' ID," says Synnove Trygg.

Eurocard AB in Sweden's tests are unlike other wireless-payment methods that use mobile phones in that they involve Bluetooth technology. Other ongoing attempts use the regular GSM network and often involve one or several SMS services, which creates costs for the consumer and longer transaction times.

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