Shareholders in China Mobile have not greeted the idea with much enthusiasm, however, and since it first revealed its interest in the bank, the operator’s shares have fallen by 3%, according to Reuters.
“The co-operation between China Mobile and SPD Bank signifies the aspiration of a closer integration between mobile communication and e-commerce applications,” Wang Jianzhou, chairman of China Mobile, revealed in a statement.
The cooperation is expected to include the joint development of mobile phone-based payments, bank card and funds transfer services, the statement continued.
The stake gives China Mobile’s new RF SIM-based mobile payments service a foothold in the banking services sector. It follows SK Telekom’s purchase of a 49% stake in Korean card issuer Hana Card and China Unicom’s move to launch a commercial NFC service in Shanghai — and is part of a trend that we expect to become widespread as banks and mobile network operators move towards the commercial deployment of NFC and mobile contactless payments services.