Gemalto Technology Empowers World's First Secure SMS-Based Mobile-Payment Service

AMSTERDAM, The Netherlands, April 10 /PRNewswire/ -- Gemalto (Euronext NL0000400653 GTO), a world leader in digital security, today announces it is providing Belgian mobile operator BASE with a comprehensive solution which allows its subscribers to perform secure payment by just sending an SMS. This revolutionary service is extremely convenient, as it enables consumers to pay with their mobile phone anytime, anywhere, quickly and easily. Always available, it also permits merchants to get paid immediately. Gemalto supplied BASE with a mobile payment application compatible with third generation SIM cards, incorporating the m-banxafe technology designed by Banksys, the company behind the authorization, security and guarantee of electronic payments in Belgium. Gemalto also provided the specific personalization services required to guarantee the highest levels of security for SMS-based transactions. The service went live on March 20, 2007.

This mobile-payment capability targets all kinds of practical services such as home deliveries, taxi rides or baby-sitting. Through an easy-to-navigate menu, the payee enters a payment request into his mobile phone. The payer receives this request, specifying the amount and the name of the payee, on his handset screen and accepts the transaction by entering the secret code he selected at service activation. Then both the customer and the merchant receive an SMS confirming the transaction.

The m-banxafe technology enables a link between the SIM card and the subscriber's banking card and account. During the activation process, the customer selects his mobile payment PIN code through the menu of his mobile phone. Then he inserts his banking card into the point of sales terminal of a BASE shop or into an ATM. He just has to select the activation option of the menu to create the link between his banking details and the PIN code on the SIM card. Banksys' m-banxafe enables reloading of the calling credit and live access to the account balance. This application has been designed in cooperation with all Belgian banks, ensuring the same level of security as that achieved with a banking card. From now on, all new Base subscribers will be issued an m-banxafe-enabled SIM card.

"We are delighted to welcome BASE customers to our new highly secure remote mobile payment service thanks to the new generation of BASE' SIM integrating our m-banxafe technology," commented Vincent Roland, CEO of Banksys. "The collaboration between Belgian Telecom operators and banks will allow us to capture cash transactions in new markets in which up till now the cards weren't accepted. This will be a benefit for all actors of the economy."

"We are very pleased to support BASE in rolling out this compelling service and bring our expertise in advanced card technology, which definitely plays a crucial role in securing future mobile payment applications," added Jacques Seneca, president Europe at Gemalto. "This innovative payment means is perfectly in line with people's lifestyles nowadays. Whether at home or on the move, they want flexibility, convenience, quick and easy access to secure mobile services. Gemalto offers solutions that make things safe and simple for users."

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is a leader in digital security with pro forma 2006 annual revenues of EUR1.7 billion, operations in about 100 countries and over 10,000 employees including 1,500 R&D engineers.

In a world where the digital revolution is increasingly transforming our lives, Gemalto's solutions are designed to make personal digital interactions more convenient, secure and enjoyable.

Gemalto provides end-to-end digital security solutions, from the development of software applications through design and production of secure personal devices such as smart cards, SIMs, e-passports, and tokens to the management of deployment services for its customers.

More than a billion people worldwide use the company's products and services for telecommunications, financial services, e-government, identity management, multimedia content, digital rights management, IT security, mass transit and many other applications.

As the use of Gemalto's software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.

Gemalto was formed in June 2006 by the combination of Axalto and Gemplus.

For more information please visit www.gemalto.com

    
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    Gemalto                                TBWA\Corporate
    
    Aline Borne                            Maxence Naouri
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