Nokia Invests In Obopay, Mobile Payment Battle Continues

Nokia has invested $70 Million in Obopay by buying of and estimated $70 million worth of preferred stock. Nokia's  eppo Paavolo, will be seated on Obopay's board of directors.

Obopay, allows users send money via text message and charges a 25 cent fee to send up to $1,000 and no fee to receive the money.

It appears the mobile payment war continues and it is expected to continue as more handset makers, credit card companies and carriers want a piece of the payment pie.

Aite Group, senior analyst Nick Holland thinks the battle for mobile payments will continue especially in developing markets and said,

"This investment indicates that the mobile payment landscape will continue to be a territorial battle between financial institutions, mobile operators, card networks, and vendors, all of which firmly believe that they deserve a piece of this still baking pie. Particularly in developing markets such as Africa and India where the case for mobile financial services has already been proven, stakeholders are rushing to capitalize on the opportunity. Aite Group expects to see other handset vendors aggressively positioning themselves within the value chain as the business models for mobile payment begin to solidify."