Japan’s NTT Docomo and South Korea’s KT are working on a service that will enable users to make mobile payments based on near field communication (NFC) when travelling abroad in either country. The two operators aim to launch the cross-border service, which will include ticketing for transport services and the use of promotional coupons as well as mobile payments, “from around the end of 2012.” However, travellers wanting to use the new service will have to be equipped with a compatible Android-based smartphone equipped with a contactless IC chip. Docomo has been providing a NFC-based mobile-wallet service domestically since 2004, while KT has been running a scheme for transport services in its home market since 2002. The Japanese operator plans to submit an outline of the common specifications established for the NFC roaming service to industry associations and standardisation bodies, including the GSMA. Docomo has formed alliances with Visa, Samsung and Gemalto to further its NFC efforts. The Japanese operator has been working with Visa on mobile payment services for some years. Docomo will collaborate with Sumitomo and bitWallet for what it terms “enhanced cross-border services.”

Last month, the same two Asian operators announced a broad regional alliance with China Mobile, in which mobile payments was mentioned as a possible area for co-operation between the operators. Other Japanese and South Korean operators have already made a similar announcement on cross-border mobile payments. Last summer, KDDI and Softbank Mobile, number two and three in the Japanese mobile market behind Docomo, announced an NFC roaming deal with SK Telecom, the largest South Korean mobile operator.

KT has further demonstrated its interest in the mobile payments with a separate deal to buy a 20 percent stake in BC Card, the leading Korean credit card company, from Woori Bank, a local bank. The deal includes an option allowing Woori to buy back part of the 20 percent if KT later goes into the credit card business on its own. KT is also in talks with other BC Card shareholders to further increase its stake.