BTMU, KDDI Announce Mobile Banking JV

The Bank of Tokyo-Mitsubishi UFJ and KDDI Corp. announced they will jointly set up a bank that will offer money transfer, settlement and other financial services through mobile phones. BTMU and the “au” mobile phone operator have agreed to establish a preparatory company, possibly in May. Japan’s first Internet-based bank designed for handset users is expected to start operations in early 2007, they said. [Thus confirming our earlier post here on 13 April — Eds]

The new service will allow money transactions between such users, using each phone number as an account number, while they are also able to purchase goods through Net auctions, with the money being withdrawn directly from their accounts. Under the planned new service, mobile phone users with deposit accounts at the virtual bank will be able to buy goods at shops up to the limit of their balance. Continue>>