By Patryk Wasilewski
WARSAW--Six major Polish banks Thursday announced they have
agreed to expand a mobile payments system that could rival Visa
Inc. (V) and Mastercard Inc. (MA) in the largest emerging market in
the European Union.
The alliance, led by the state-controlled PKO Bank Polski SA
(PKO.WA), aims to capture some of the market for cash-based
transactions that make up for 77% of non-Internet based
transactions in Poland.
The system will be based on PKO BP's existing system which
allows its clients to use a mobile phone to pay out cash from
automated teller machines or pay at retail points instead of using
a debit or credit card. The new platform will allow users to pay
over the Internet and transfer funds between accounts.
As well as PKO Bank, the initiative includes Bank Zachodni WBK
SA (BZW.WA), BRE Bank SA (BRE.WA), Millennium (MIL.WA), Alior Bank
SA (ALR.WA) and ING Bank Slaski SA (ING.WA). It will have a
potential customer base of around 16 million and hold a 70% market
share in 18-35 year-olds who are most likely to use mobile
payments.
"The idea is that the system will be more effective and cheaper
than the card-based system," Millennium's Chief Executive Boguslaw
Kott said.
"This will certainly create a basis for potential discussions on
lowering interchange fees," BRE's Chief Executive Cezary
Stypulkowski said.
The banks would like the new system to go online before the
Christmas holidays or early next year.
Poland's central bank and financial regulator recently pressured
Visa and Mastercard to lower their fees charged for using cards
starting from 2014.
With the Polish economy slowing and the main interest rates at a
record low of 2.5%, banking sector earnings are under pressure.
Lenders are introducing new products for clients in an attempt to
increase fees that heavily depend on transaction volumes.
Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires