Secure m-commerce handset branded 'infeasible'

Barclays-backed mobile venture Mobey Forum has been criticised over plans to pilot a dual-chip mobile handset that would enable secure wireless payments.

The Mobey Forum aims to develop a payment chip which sits in a separate slot beside the mobile phone's SIM card and hosts all the applications needed for secure wireless payment. But experts say developing a dual SIM slot is not going to be feasible as mobile companies will have to re-structure their whole handset design.

Kimmo Matero, marketing director, mobile payments at Finnish telco Sonera, sees the banks trying to gain control in a field they don't operate:

He said: "It's a bit similar to the argument over Beta/VHS in the 1970s. Beta was more practical but in the end VHS won because of stronger backing. Everyone knows a single SIM slot makes sense, but banks are not willing to give in because they want to control their own smart SIMs and not share the profits with operators."

According to Neil Stewart, chief executive of SIM provider Aspect, the secure payment architecture does already exists in a secure single SIM,. He said: "The phones can work with just one SIM as it has the same functions as a smart chip. It would be silly to build two chips for the same purpose."

Nokia has no plans to release dual SIM handsets according to a Nokia spokeswoman. She said: "We are fully aware you can do the same functions with just one SIM. But only the future will show which standard will be adopted."

Other Mobey Forum members include ABN Amro, HSBC, Nordea Bank, Deutsche Bank and Visa.

A Mobey forum representative was unavailable for a comment.