15th Sep 2014 12:12
LONDON (Alliance News) - Proxama PLC Monday said the decision by mobile payments platform Weve to reduce its activities in developing its mobile wallet operations will not have a material impact on its financial performance.
Proxama was selected as a partner by Weve in February in a deal that would see its TapPoint platform become the foundation for the 'Pouch' service being launched by Weve, which is a joint venture of EE Ltd, Telefonica O2 UK Ltd and Vodafone Group PLC.
Since the contract was awarded, a range of changes have been seen in the host card emulation technology environment meaning banks are able to retain control of near-field communication payment security without requiring a network operator's SIM-card based security.
Proxama said that while this may negatively impact Weve, it should provide Proxama with opportunities to launch cross operating systems, cross card schemes and NFC payment wallet solutions.
A report in the Daily Telegraph on Monday said the operators behind Weve had dropped its "wave and pay" service six months before it was due to be released after failing to agree on how the app should function. The service is also understood to have been dropped in the wake of Apple Inc's announcement last week of its Apple Pay NFC service, which will allow users to buy goods and services with a single swipe.
Proxama shares were down 3.1% to 3.9 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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