Alkor PayCash Teams-Up on Contract to Specify 3G Mobile Payment System Requirements That Will Be Used in Standards For the Russian Federation


October 25, 2004, Marlborough, Massachusetts-PayCashMobile Inc., provider of the global electronic payment solution, PayCash™, announced today that sister company, Alkor PayCash of St. Petersburg, Russia will participate in the project to specify 3G mobile payment system requirements that are planned to be used in Russian Federation standards.

 

In September 2004, a contract was signed between Third Generation (3G) Telecommunication Networks Operators Association and NIIR Payment Systems Co. (NIIR, Russian National Scientific Institute of Radio Research) and jointly will utilize Alkor PayCash's research entitled: "Development of an electronic payment platform for use in networks of cellular communication". This research can be put into execution as the basis for standardization of mobile payments systems in the 3G network of the Russian Federation.

 

In the most of the countries in the world, there is no cheap and easy way for cellular phone subscribers to use their cell phone to purchase goods and services, sending payments to the mobile commerce (mCommerce) merchant in real time. Also, there is no effective method for cellular service providers to profit from mCommerce even though ultimately, they are responsible for the quality of service and conditions that permit mCommerce to thrive. The cellular service providers play a key role in the implementation of electronic payment systems, which can function separately from bankcard and credit card systems. For cell phone users, this wireless payment function will provide a convenient and highly secure way to effect payments using their cell phones. With this wireless payment system, service providers can automatically deduct a portion of the payment based upon agreements with the mCommerce merchant.

 

Considering the vast potential of transactions in the 3G mobile systems, and the mCommerce opportunities as a result of the new payment technology, it is necessary to set an electronic payment standard in the 3G networks. A partnership between the service provider and the mCommerce merchant is encouraged, as their joint effort is necessary to generate revenue from the cell phone transactions and usage. The new wireless payment technology, along with the mCommerce opportunities will attract new subscribing customers for the cellular service provider.

 

Merchants of goods and services can also benefit from this wireless payment system because it serves as means to extend their retail presence to the community of wireless subscribers. It is an additional advantage for the merchant because the cell phone in the possession of the cell phone subscriber and is usually turned on. This allows the merchant to stay in connection and communicate with his customer.

 

The collaborative effort of Alkor PayCash, 3G and NIIR Payment Systems will in turn create and implement the technology to enable a cell phone to function as a payment vehicle or "electronic wallet". To equip a cell phone with this capability, the demonstration systems to be developed under the contract will rely on the existing PayCash™ technology. PayCash is the global leader in secure electronic payment solutions and has been in use for several years in Russia. PayCash's US headquarters, PayCashMobile, has been in existence since 2000.