Nokia Takes Minority Stake In Mobile Payments Provider Obopay
Handset giant Nokia (NYSE: NOK) has invested an undisclosed amount for a minority stake in Obopay, the Redwood City, California-based mobile payments provider. Obopay said it would use the funding, which comes directly from Nokia itself, and not its venture capital fund, to “aggressively extend their product suite and enhance their global presence.” Obopay’s last round of funding—its fourth—came in just under a year ago at $20 million, bringing it’s total at the time to $68 million. The Ft.com’s Tech Blog puts Nokia’s investment at $70 million.
SEE ALSO: Vodafone, Western Union Testing International Mobile Money Transfers
Read more about Obopay’s plans and possible Nokia uses for it after the jump.
Obopay CEO Carol Realini told the blog that high growth in mobile payments was still possible, especially in developing countries such as India, where Obopay operates aside from its home country the US. She cited a Gartner report predicting mobile payments growing from 6 million users in 2009 to 100m by 2011. Kenyan carrier Safaricom’s mobile payments service M-Pesa has been especially successful. It started out as a domestic service to allow Kenyans to send money to one another through their phones. Now, Safaricom owner is testing mobile transfers between the UK and Kenya through the M-Pesa service.
Obopay lets consumers and businesses buy, pay, or transfer money through any mobile phone using Obopay’s mobile application, text message, the mobile web, or Obopay.com. The mobile payments provider charges the sender $0.25 to send up to $1000. Receivers do not pay anything. No word on whether Obopay might eventually be one of the payment options on Nokia’s upcoming Ovi Store. If it were integrated, it would give Nokia another payment option aside from credit cards and billing through a user’s mobile carrier. The last point is especially important, as developers will get less of the promised 70/30 revenue split after the operator’s take their cut for handling the payment.
Nokia VP and head of corporate business development Teppo Paavola joins its board of directors.
Posted In: E-Commerce, Payment Systems, Money, M&A & Venture Capital, Mergers & Acquisitions, Technologies / Formats, Companies, Nokia, Countries, Asia, India, obopay
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