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China Mobile to invest billions in a bank

Written by James Delahunty (Google+) @ 10 Mar 2010 9:02

China Mobile to invest billions in a bank China Mobile has announced plans to invest billions of dollars in a Chinese bank as part of a broader plan to develop mobile phone-based banking and business services for end users. The company will pay out 39.8 billion yuan ($5.8 billion) to gain 20 percent of Shanghai Pudong Development Bank.
Mobile phone companies and service operators globally are looking to the high levels of mobile phone use as an untapped instrument for financial transactions and other business uses. Of the between 6 and 7 billion people on earth, it is estimated that around 1 billion have some kind of bank account.

Nokia is one company that has seen huge potential to turn mobile phones into tools for financial transactions with Nokia Money. In some countries, such as Finland, using mobile phones to pay for certain services like public transport, or to pay for a car wash or soft drink from a dispenser, is fairly common practice.

China Mobile and the Shanghai Pudong Development Bank will work together to develop mobile phone services such as customer payments and money transfers and other e-commerce solutions.

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