October 21, 2004 – Next month, Dai Nippon Printing Co. will begin a service that allows users of cell phones fitted with noncontact ICs to use the handsets as credit cards, according to the Nihon Keizai Shimbun. The company intends to boost revenue from the service to 1 billion yen (US$9.24 million) over the next 3 years.
The company will initially serve holders of cards issued by JCB Co., displaying a menu of available card-related services on their cell phone screens. Dai Nippon has produced cards for credit card companies in the past and intends to utilize the know-how acquired in that business to start the new service.
The printing firm will add the credit card capability to cell phones on behalf of card companies, from which it will collect commissions. JCB cardholders who wish to have their cell phones double as credit cards have to mail a request to JCB, which will provide the necessary customer data to Dai Nippon. The printing firm will then issue customers the required ID codes and passwords.
The company also intends to serve other firms and banks that issue credit cards.
The new cell phone-based service for JCB cardholders will be available at first only to hire taxis from Kanagawa Prefecture-based Sagami Chuo Kotsu KK. Full-scale service allowing customers to purchase a wide variety of goods and services will begin next spring.