Sony, NTT DoCoMo tie up for IC card service

TOKYO, DEC. 25. Japan's Sony Corp, NTT DoCoMo Inc., Toyota Motor Corp, three banks and five other companies said on Monday that they would begin prepaid card services from next October.

Named `Edy', the system will allow users to pay for goods and services using a non-contact integrated circuit (IC) card through which money can be deposited or withdrawn electronically. IC cards can be held near a terminal to complete a transaction rather than being inserted them into a slot.

The electronic money card was developed by Sony, the world's number two consumer electronics maker, while Toyota will develop automobile applications.

NTT DoCoMo, Japan's biggest wireless carrier, will support the use of the card in mobile transactions, such as shopping on its network of Internet-enabled mobile phones, which has nearly 16 million users.

Sakura Bank Ltd, Bank of Tokyo-Mitsubishi and Sanwa Bank will provide banking terminals for the IC cards and promote their use in electronic transactions. A new company, yet to be named, will be created in January to market and develop services.

It will be 47 per cent-owned by Sony and its subsidiary Sony Finance International Inc.

NTT DoCoMo and Sakura Bank and its affiliates will each own 15 per cent of the venture. Japan's number two carrier DDI Corp, better known as KDDI, will also promote Edy's use in mobile phone-based transactions.

The other companies in the venture are car electronics maker Denso Corp, Japan Research Institute and other affiliates including a unit of Sakura Bank.

- Reuters

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