Gemplus and Euronet Worldwide Announce Agreement to Offer Wireless Payment Solutions to Mobile Operators - Brief Article

Wireless Internet, April, 2001

Gemplus and Euronet Worldwide announced the signing of a strategic alliance whereby Gemplus will market and deliver Euronet Worldwide's expanding suite of wireless payment solutions to GSM mobile operators around the world.

These SMS, SIM toolkit, and WAP-based payment and mobile banking solutions are offered as a completely outsourced, wireless ASP solution to all mobile operators. Gemplus will leverage its 100+ dedicated mobile operator sales force and impressive customer base to promote Euronet's products and services. Gemplus currently provides products and services to over 80 percent of all GSM operators. Euronet will operate the ASP data centers and manage every aspect of the integration between financial institutions, card organizations, wireless devices, and mobile operators.

The services offered will enable prepaid mobile phone subscribers to purchase and recharge additional prepaid airtime over their GSM phone, at a point-of-sale terminal, over the Internet, or at an ATM.

Since prepaid phone services are the fastest-growing segment of the mobile phone market, Euronet's prepaid electronic ReCharge products will have a significant impact on mobile operators' P&L. Indeed, carriers will be able to eliminate paper-based logistics associated with scratch cards (production, delivery, inventory management), reduce significantly their distribution costs, enhance user experience (one-step recharge -- any time, any place), and control churn.

These products are immediately available and mobile operators interested in them can be operational within a typical timeframe of 60 days. The two companies are committed to continuously cooperating and co-developing innovative solutions and services providing mobile operators and expanding suite of next-generation mobile commerce products, including solutions in the areas of bill payment and bill presentment, event messaging, and wireless e-purse solutions.