Gemalto NV will continue its long-term partnership with Orange by providing the Near Field Communication payment technology to the France-based mobile-network operator’s phones, the chip maker has announced.

Orange is planning an NFC rollout next year but was unable to provide any specific details by PaymentsSource deadline.

Orange has been involved in an NFC project in Nice, France, that also involves banks, transportation operators and various retailers. Gematlo’s NFC-chip technology enables consumers to use NFC-enabled mobile phones to pay for meals, groceries, transit rides and purchases at local stores.

The partnership with Orange is important to Gemalto because it reflects the “trust given by Orange to implement the security services enabling NFC payment and ticketing,” Jean-Louis Carrara, vice president of business development, telecommunications for Gemalto North America, tells PaymentsSource via e-mail. Moreover, Gemalto is able to provide a complete environment “trusted by operators, banks and transit authorities as the foundation of services ultimately trusted by end users,” he adds.

Orange also has been working with other companies to help produce a commercial NFC roll out. In fact, Orange and Barclaycard earlier this year partnered to eventually deploy NFC-enabled mobile phones (see story).

While announcements about mobile payments seem to pop up daily, “contactless mobile payments will take off, but payment ecosystems take time to develop, and NFC technology is no exception,” Todd Ablowitz, president of Double Diamond Group, a Centennial, Colo.-based consulting firm, tells PaymentsSource.

Moreover, “commercialization does not mean billions of transactions right away,” he says. It will take time for the transactions to build up to a significant amount because consumers need to “learn and understand the technology before they start using it.”

Adopting NFC technology “is a long-term play by serious players like Orange and the city of Nice. Orange has all the pieces they need, and, hopefully consumers will love it,” Ablowitz surmises.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry