Telcos and the move to mobile e-money

For a concept that makes such perfect sense, electronic money has been a long time coming.

Left in the hands of banks, e-money has gone no further than debit cards, credit cards and ATMs. But now the almost shockingly IT literate European Commission has given e-money the impetus it needs by letting other sectors get in on the act.

Telcos have been following the E-Money Directive through the political process, and several - including Deutsche Telekom (DT) and Dutch telco KPN - are prepared to pounce on this market. (Once again, no word from BT. Wake up guys, the world is moving on without you.)

It makes no sense to pay for small items like a can of Coke or a pack of cigarettes with your Visa or switch card. E-money combines the modern love of plastic with the simplicity of cash, and soon your mobile phone provider will argue that it's best placed to provide you with that service.

After all, why take both a mobile phone and your wallet with you when you only need your phone?

NTT DoCoMo has already caught on to the possibilities of e-money with its i-mode phones. The Japanese download services - like news feeds or games or music - and pay for them all through set charges on their monthly bill.

In Finland, consumers can already call numbers on vending machines and have the cost of dispensed goods added to their mobile bill.

And telcos aren't the only sector that should be thinking about e-money. Anyone that sends regular bills to households could get in on the act. Think electricity, gas and local tax bills - after years with a less than exciting image, billing systems are now blossoming.

The telcos won't let the banks drag their feet any longer. And that's just push that e-money needs.