Nokia banks on Obopay

Telecom Asia Staff
26 Mar 2009
00:00

Nokia has invested what is believed to be $70 million in US-based mobile banking firm Obopay, in another sign of its support for the mobile banking market.

Obopay operates in the US and India, links its service to a credit card, and allows users to send money via SMS. It charges a 25c fee to send up to $1,000.

Nokia has not disclosed the size of the investment, but the firm made a regulatory filing this month for the sale of up to $70 million in stock, the Associated Press said.

Obopay had raised around $66 million in four funding rounds prior to Nokia's investment.

Nokia's head of corporate business development, Teppo Paavolo, will take a seat on Obopay's board as part of the deal, Obopay said.

"This investment reflects our belief in the global potential for mobile payments," Paavolo said.

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