The Mobile Virtual Network Operator (MVNO) not only merges the retail and mobile business worlds but is already available in many retail chains.  These chains allow customers to recharge their prepaid phone cards using a small barcode-containing card, eliminating queues at tobacco shops and newspaper kiosks.

Here’s how it works: Customers purchase a glossy piece of paper and add it to their basket. The cashier scans the barcode, treating it like a Coca-Cola can, and charges the bill at the point of sale.  The receipt provides a digit code for recharging the phone.

This model offers two key benefits:

• 1. Integration of Recharge Card Fulfilment: It integrates the recharge card fulfilment process between retailers and telcos, as well as their dealers.  This introduces a new player in the phone recharge market, one that typically understands distribution better than telco operators.  Potential applications include one-off purchases during digital terrestrial or satellite television programmes.
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• 2. Bypassing Credit Card Acquiring: This model bypasses the credit card acquirer, allowing stores (or dealer chains) to pay expenses and recharge cards directly through the credit circuit.  This short-circuits the money flow between retail and telco banks, potentially reducing commissions and streamlining the delivery chain.

The advantages for customers are significant, as this system reduces commissions and simplifies the delivery process.

Future applications will likely use NFC phones, eliminating the need for paper.

Below, you can see a TIM and 3 recharge card in an Esselunga store in Milan.