Mobiles encroach on credit cards with DoCoMo deal

Phone-enabled ATMs on the table...

Japanese mobile giant NTT DoCoMo has bought an 18 per cent stake in card issuer UC Card.

Mizhuo Bank, owner of UC Card, will transfer the stake to DoCoMo from the middle of this month for ¥1bn. Mizhuo bank customers who hold a Mizhuo Mieage Club card will be able to use DoCoMo's mobile credit card service.

The pair are also looking at further collaboration including the possibility of equipping Mizhuo ATMs with electronic readers that are compatible with DoCoMo's wallet phones and developing settlement services for mobiles.

DoCoMo has already made several moves aimed at taking mobile further into the financial services space. DoCoMo uses FeliCa technology from Philips and Sony based on NFC (near field communications) which enables a customer to pay for small items with their phone.

Late last year, the mobile operator launched its own credit card brand, iD, which will be promoted as part of the deal with Mizhuo.