Nokia has invested heavily in mobile money experts Obopay, in a move that shows the corporations confidence in the future of mobile banking. The exact details of the investment are unknown, but more than one source has noted that Obopay made a regulatory filing this month for sale of up to $70 million in preferred stock this month.
Obopay operates in the US and India and allows customers to move money by mobile, via SMS or mobile application. Obopay creates secure accounts for users to transfer money through, and gives the option of tying these accounts to existing bank accounts.
From the release:
Teppo Paavola, Nokia Vice President and Head of Corporate Business Development, said “This investment reflects our belief in the global potential for mobile payments. Obopay has consistently demonstrated its ability to redefine how people spend and send money and has established itself as the leader in a competitive landscape.”
“This investment is a landmark in the evolution of mobile payments. It underscores the global potential of mobile money by providing convenient access to money anytime, anywhere,” Obopay CEO Carol Realini said in a statement. “Given Nokia’s position as the leader in mobile communications, we could not have asked for a better investor.”
What we think?
With many people sceptical about the future of NFC (near-field communications) as the future of mobile payments, it’s looking like good old SMS might win out again. While Obopay do allow the use of their service via mobile apps, it’s in developing and emerging markets that this service will be most used. But it’s not like SMS wouldn’t be just as handy in the West. Being able to use a shopping-comparison service on your mobile, and then arrange the sale through a quick text to a shortcode, is useful in any country.
If the speculation that Nokia has sunk 70 million dollars into this is true, then it shows a huge amount of confidence in the service. Especially considering how much work Nokia has put into NFC solutions.
