An article by Claudia Nemat, Member of the Board of Management responsible for Europe and Technology
Mobile payment is a central development taking place in our industry. There has long been talk of technologies and possibilities, but we are now seeing the first actual products being launched on the market.
At Deutsche Telekom, we intend to be drivers of this development and position ourselves from the outset as a provider of mobile payment services on the European market. After all, the markets covered by our footprint make up 37 percent of the European payment market. The Group intends to tap into this growth potential.
And the first place we have started is Poland. Our Polish subsidiary has successfully launched Europe's first actual digital wallet on the market. Poland's infrastructure for mobile payment in the retail segment is the best in Europe, which is one of the reasons for deciding to launch this product there. By the end of the year Polish retailers will have installed 100,000 NFC terminals that enable contactless payment by exchanging data between cell phone and cash register. For comparison, Germany only has around 1,000 terminals. Poland is an innovative, technology-friendly country. It has some excellent universities and a wealth of skilled workers trained in technical sciences and engineering. It's no coincidence that Poland will be CeBIT's partner country next year.
In Europe, we often cast envious glances at the U.S., where Silicon Valley can turn ideas that start in the neighbor's garage into global products. But we shouldn't always be peering across the pond: we need to look at our own doorstep. The diversity found in Europe's markets is exactly what makes them such a great source of opportunities. Alongside Germany, Deutsche Telekom's footprint as a network operator extends to 13 countries across Europe, ranging from places such as Albania which has GDP per capita of less than EUR 10,000, to the Netherlands with over EUR 30,000.
This diversity is often seen solely as a challenge, but it is also an opportunity. As a Group we can work to roll out innovative topics in markets that offer us the chance to establish ourselves as "local champions." Poland is the champion of mobile payment and will share its experience and competence with other Group subsidiaries. The technical platform used by the mobile payment system was developed in Poland and is to be used in other countries as the system becomes more established. The mobile wallet - or MyWallet as we call it - with a consistent design and corresponding brand names will also be available in every country. It is then down to the local partners in each country to fill it up. Don't forget, each country has its own banks, retail chains, loyalty programs, transport systems, etc. So we take the Group's strengths and combine them with local know-how and knowledge of the market. It is our way of drawing on the diversity found in European markets. One player alone is strong, but a team that stands shoulder to shoulder is several times stronger - and making the most of this strength has to be our goal.