M-Net, NBK, and MTC-Vodafone lead mobile payment evolution

The announcement, which concluded a six-month testing phase comprising 120 users and 48 points-of-sale through various merchants, establishes Kuwait as just the fourth country globally to have widely accessible mobile payment services.

Mobile payment (also referred to as m-payment or micro-payment) allows customers to conveniently pay at various points-of-sale using only their mobile phones. It also allows retailers, service providers, restaurants, and home delivery services to be 'always connected' to their customers, ultimately offering the widest possible choice and flexibility of payment.

'We are extremely excited about our new service and what it means for customers, merchants, and Kuwait,' said Vice Chairman of the Board Mr. Ibraheem Al-Khuzam in a speech during today's press conference. The press conference was attended by Board Member Mr. Adel Al Majed, M-Net's General Manager Mr. Hussam Al Roumi, and members of the local and regional press.

Al Khuzam said, 'M-Net was established in 2003 with a mission to bring added convenience and security to the payment processes customers undergo on a daily basis for goods and services.

'Our goal was always to empower people to efficiently manage their day-to-day expenditures, and to connect merchants to their customers' rising demand for convenience and security in purchasing. Our dream was to achieve this by employing widely-accessible and cutting-edge new technologies.

'Today, almost two years later, we turned our dream into a reality by launching the first widely accessible mobile-payment services. We could not have evolved this far without our strong strategic partnerships with some of region's leading businesses, such as M.H. Alshaya Co., the National Bank of Kuwait (NBK), Mobile Telecommunications Company (MTC-Vodafone), and Al Roudhan International Group.'

Merchant network
M-Net General Manager Mr. Hussam Al Roumi said, 'we have a strong network of merchants that includes retailers, restaurants, delivery services, and service providers. Starting today, customers can start ordering flowers from Al Jarrah Florists and pay for their orders directly through mobile phones from the office, work, or home. Customers may also benefit from the convenience of paying for dinner at the exclusive Le Notre restaurant or the trendy Casper & Gambini's restaurant without the need to carry cash, or even a wallet.'

Al Roumi elaborated, 'the response we received from out test users during the trial phase was phenomenal, given the fact our network was growing during trials, they continued to pay though M-Net and ultimately registered 1000 payment transactions worth KD 5000.

'Today, we have already secured market leading merchants and we will continue to grow our merchant network until we have mobile payment available in every retail store, coffee shop, delivery service, service provider, and restaurant in Kuwait,' he said.

Proven technology and security
M-Net's mobile payment technology is run on a secure platform with a proven global track record that was tested and operated in Europe. The technology was further developed in Kuwait by banking and I.T. experts, so that each transaction is executed through both Kuwait's highly secure banking network and the internationally-encrypted GSM network.

'We have invested in the latest technology platform to not only meet, but exceed the high expectations of trust and security people expect for handling their money. We took every necessary step to make sure that the M-Net platform interacts with merchants using secure connections. As a result, we have developed a method of payment that is technologically advanced, secure and easy to use', said Board Member Adel Al Majed.

'This is achieved by connecting customers' mobile phones directly to their National Bank of Kuwait (NBK) account, while ensuring that payment is only authorized when customers use their M-Net registered mobile-phones and enter their unique M-Net PIN number,' he said.

Person-to-person money transfer
In addition to enabling customers to shop without cash and to pay without being physically at the point of sale, M-Net also enables users to transfer funds from one M-Net enabled bank account to another M-Net enabled bank account through their mobile phones while on-the-go.