Telecom equipment maker Ericsson has launched a new mobile payment service in the European market.
Unlike other mobile payments solutions, Ericsson Money allows consumers to send and receive money by merely sending a text message.
Mobile payment solutions generally involve something called near fields communication or NFC that allows users to make payments by swiping their smartphone on a reader.
Ericsson Money, which is available to users in seven European countries including the UK, will initially be available for free, though the company plans to charge a 3 percent commission in the future.
The service is available in two plans, first is the basic plan that will let users deposit and send money up to £1,600 per year while the premium plan comes with no such limit.
Customers wishing to use the service will have to deposit money into their Ericsson Money account using debit or credit card or via bank transfer, Know Your Mobile reports.
“A new market is opening up consisting of consumers whose first meeting with banks will take place over a mobile phone and who may never own a plastic credit card. People who may never enter a bricks-and-mortar bank now have the opportunity to “walk” into a virtual bank using their phone,” said Semir Mahjoub the head of Ericsson Money Services.