70 million banking customers can use the payment system

Düsseldorf/Munich, 25 January 2008 A new payment service that is being launched by O2 and Vodafone means secure online payments by mobile phone or PC from spring onwards. It delivers maximum payment security to over 70 million bank and mobile phone customers in Germany. The new payment system for home or mobile online payments isn't just available to Vodafone and O2 customers, but to all mobile phone network users.

People who shop online want a simple and secure method of payment that can be used in as many online shops as possible.

Lutz Schüler, Director Marketing & Sales at O2 Germany said, "The popularity of mobile internet is growing. Our payment system satisfies the requirements of this new trend. It enables the some 13 million Vodafone and O2 contract customers to make simple, fast and secure payments from their home PC or mobile phone."

"Not only does Vodafone and O2's innovative service satisfy customer requirements, it also delivers many benefits to retailers, such as more efficient payment processing and the extension of their customer base as a result of new business from people who were previously sceptical about online payments," said Frank Rosenberger, Vodafone's Marketing Director. "Mobile phones are like keys and wallets. People don't leave their homes without them and they'll be even more important items in future when they incorporate functions such as mobile payments."

The new payment system works according to a very simple concept. It combines the tried-and-tested direct debiting procedure with a text message confirmation to the mobile phone. In practice, this means that customers order products via mobile portals or online shops and pay by entering their mobile phone number and a password. Then a text message is sent to their mobile phone. All they have to do is confirm it and the amount is direct debited from their account. Prepaid customers, customers with company mobile phones and customers who use other providers' networks have to register once to use the online payment service free of charge.

The fact that payments are transacted via two independent communication media make them considerably more secure because the payer doesn't have to disclose bank details or a credit card number.

Source: Vodafone