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PayPass Function now Part of Telenor Wallet app Thanks to Budapest Bank

Telenor says its mobile wallet has become the first ever solution that supports remote and contactless payments alike, and features both NFC technology and the MasterPass service with the help of Budapest Bank.

Aleksandra Banovic, VP retail services, Telenor.

The local mobile payment culture was given yet further impetus thanks to Telenor’s latest development. The telco provider’s mobile wallet has been around for a while now and the app enabling its functioning has been downloaded to some 600,000+ handsets. But as Aleksandra Banovic, vice president of retail services at Telenor said, customer feedback indicated that the NFC feature was badly missing from the equation. That is when the telco decided to team up with Budapest Bank to incorporate NFC into the existing mobile wallet.

“It allows you to replace physical services such as buying tickets or travel insurance,” Banovic noted. “Now you can use your mobile wallet for any kind of transaction, whether offline or online, remote or contactless.”

The service is available for Telenor clients who, after downloading the Telenor Wallet app, may request a Telenor MobilPass card with which the app can be topped up via a bank transaction. That amount can then be used for PayPass payments. Around 75% of points of sale (PoS) in Hungary are NFC-compatible. But payment is not an issue even in the case of the remaining 25% of PoS. This is when a separate plastic card provided together with the Telenor MobilPass service can be used. Other functions of the plastic card include making online payments or getting cash from ATMs that do not allow contactless withdrawal.

Key Asset

A key asset of the Telenor’s mobile payment package, which is available for HUF 490 per month after a three-month trial period, is that every existing mobile payment service has been integrated in the new wallet to maximize the scope of use. Purchasing parking or lottery tickets and travel insurance, paying for invoices, topping up prepaid phone cards, or ordering taxis are just as easy as booking tickets from, ordering food from or redeeming vouchers.

“According to our survey, our customers deem three main factors as crucial: control, simplicity and customization,” Banovic said. “By being able to determine the amount of money the MobilPass should be topped up with, people gain control over their own finances. On the other hand, the simplicity of contactless mobile payment also works when using Telenor Wallet, which can be customized.”

As Gyula Fatér, head of retail at Budapest Bank said, competition is fierce among incumbents of the banking sector and players from the outside too. Fintech companies are trying to replace banking services with their own solutions and thus carve out a market share, particularly in the areas of retail payments and transfers.

“Our vision of the future builds on intensifying digitalization,” Fatér said. “Our aim is to be one of the top banks in terms of digitalization, and the virtual payment scheme introduced as a joint effort with Telenor is a key milestone in this process. It will take banking customer experience to a whole new level.”