BUSINESS

Canadian telcos' EnStream joint venture divests Zoompass mobile wallet business

10/16/2012 10:56 EDT | Updated 12/16/2012 05:12 EST
TORONTO - The EnStream joint venture set up by Canada's three largest mobile phone companies is selling its Zoompass mobile wallet business.

It says Paymobile Inc. will acquire Zoompass, launched in 2009 as a way to allow person-to-person money transfers using mobile and online devices from Apple, Google and Research In Motion.

Terms of the deal with Paymobile weren't disclosed in the announcement Tuesday.

Toronto-based Paymobile offers its clients various types of payment cards as well as technology for transferring funds from bank accounts using mobile devices.

EnStream, which was created by BCE Inc.'s Bell (TSX:BCE), Rogers (TSX:RCI.B) and Telus (TSX:T), said that Zoompass no longer fits its strategic direction.

The company will focus on the business-to-business market instead of the retail mobile payment business.

"As the mobile commerce ecosystem has evolved, EnStream's focus has shifted to enabling established credential issuers and carriers to leverage the potential of NFC (near field communication) in mobile handsets," said Almis Ledas, chief operating officer of EnStream.