Optus Mobile today launched MobilePay, an electronic wireless payment solution for small businesses via a mobile phone.

Developed by Australian company Telpay, the MobilePay system provides a quick, convenient and secure payment of method in the field using a mobile phone and a Telcel unit, a tamper-proof card swiper the size of a packet of playing cards.

Optus Mobile's Director of Small Business, Matt Davey said Optus would be marketing MobilePay to its small business customers and expected it would particularly benefit sole traders.

"We recognise that many sole or small traders such as gardeners, personal trainers, tradespeople or marketstore holders are missing out on sales because they can't take a credit card payment.

"With MobilePay we are delivering an affordable, convenient and secure payment solution for small business where conventional EFTPOS machines and credit card payments just aren't available."

Telpay Founder and CEO, Mark Goulding, estimates there are currently 30,000 - 50,000 small businesses not yet using electronic payment solutions due to cost restrictions or mobility.

"MobilePay fills a real need in the market. For many small businesses, EFTPOS just isn't economical or practical while imprint machines suffer from time delays and security concerns.

"MobilePay's low set-up and SMS transaction costs mean instant pay technology is now accessible to the growing sector of smaller businesses, particularly those businesses which are mobile," he said.

Using MobilePay is simple. The trader swipes the credit card through the Telcel unit. The data is then transferred via infrared to the trader's mobile phone.

The details are sent via an encrypted SMS to the banking network. Within a few seconds the transaction is accepted or declined. The trader then receives payment within 24 hours rather than in several days as with paper transactions.

Several businesses are already using MobilePay with great success.

According to Bernard Eddy, a marketstall holder for Mark Honoré Leather goods, "There's nothing worse than having a customer walk away while you're stuck on hold waiting for verification of credit card details. MobilePay provides a swift and secure solution via a unit which fits into my wallet."

Another small business person, Jodie Stewart, from About Life, a nutritious food concept store and catering business said, "The mobility and enhanced security of MobilePay means it is an ideal payment solution for our catering service, particularly given the pace at which many of our clients operate."

MobilePay costs and charges
The cost of the MobilePay swipe device is $55 with an annual licence fee $220. Users pay for the cost of the SMS, which is 25 cents per message sent, plus a transaction fee.

MobilePay customers can pay per transaction via Telpay monthly bill or pre-pay for transactions. The more pre-paid transactions a customer purchases the cheaper the rate. The rates range from 90 cents per transaction to as low at 75 cents per transaction. Customers pay their normal banking charges.

Editor's Notes
JPEG images of the Mobile Pay system in use are available and can be couriered or emailed to media.

For interviews with any of the people named in this release please contact:
Louise Ingram
Optus Corporate Affairs
Tel: (02) 9342 5042 Tel: (02) 9342 7846

Telpay:
Liza-Jayne (LJ) Loch
REPUBLIC Consulting
0439media9 (0439 633 429)
Tel: (02) 9380 4599