"Project Oscar" U.K. Mobile Wallet, Mobile Payments Effort Could be Approved Soon

Vodafone, Telefonica (O2) and Everything Everywhere (Deutsche Telekom and France Télécom have been waiting for approval from the European Commission to launch a mobile wallet and mobile payments business in the United Kingdom, and approval is expected 2012, but most likely not in time for the London Olympics.


Project Oscar would provide a single platform that could be used by retailers, banks and other financial services groups, allowing mobile devices to store cash in the form of linked accounts to credit and debit card accounts, for example. 


Project Oscar also would support mobile payments using near field communications. The difference between a mobile wallet and mobile payments sometimes is subtle, but generally, a mobile wallet stores credentials, which might include loyalty program details.


A mobile payment service allows those credentials to be used at retail point of sale terminals or for online purchases. Business models also can differ. Some mobile wallet systems intend to make money supporting advertising, promotion or other marketing and loyalty programs, but not actual payment transactions, which will be handled by business partners.


Mobile payment systems generally involve a provider in the actual process of transactions, with the revenue earned from that role as a transaction provider. 


Both Isis and Google Wallet have opted for the mobile wallet approach, neither intending to be a direct payment brand, but only supporting transactions cleared by card issuers.