Submitted by Mike Grenville on Wed, 27 Apr 2005 16:52

NTT DoCoMo and Sumitomo Mitsui Financial Group (SMBC) are to jointly promote a new Credit-Payment Service using Mobile-Wallet Handsets

The credit-payment service will use DoCoMo "Mobile Wallet" phones equipped with smart-card functions for cashless payments.

DoCoMo will introduce a new brand for the service, whose platform will be jointly developed by DoCoMo and Sumitomo Mitsui Card. At the time of the service launch, DoCoMo will issue a new credit card (conventional plastic card with an international credit card company's brand) that can be used in conjunction with the Sumitomo Mitsui Card.

Sumitomo Mitsui Card will use its expertise as a general credit card company to establish infrastructure for mobile credit-card payments ranging from small to large amounts, including the installation of terminals at member retail shops nationwide to enable customers to make payments with mobile-wallet handsets. The company will promote mobile-wallet services by merging them with existing services.

SMBC, meanwhile, will develop ATMs compatible with mobile-wallet handsets to offer customers enhanced convenience through its ATM networks.

As part of the tie-up, DoCoMo plans to acquire 34% of Sumitomo Mitsui Card's common shares for approximately 98 billion yen, including new shares to be issued by Sumitomo Mitsui Card.

Sumitomo Mitsui Cards is Japan's second-largest credit card company with 12.8 million cardholders while DoCoMo's has 49 million subscribers.

The move further erodes the boundaries between industries and it will be interesting to see if other operators follow suit with similar tie ups.