Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
Bank of Montreal Launches “Tap and Pay”
BMO Bank of Montreal today launched its Mobile PayPass Tag, a technology that allows BMO personal credit card customers to make purchases through a sticker affixed to their mobile phone and receive an instant email verification of each transaction.
By making the PayPass technology available for use on mobile devices, consumers no longer need to carry cash or coin, or even a purse or wallet, with them to make small-dollar-value purchases. They can just tap their mobile phone over the PayPass reader at the point of sale and the transaction is instantly processed to their BMO credit card account. For purchases under $50, no Personal Identification Number (PIN), swipe or signature is required.
Through MasterCard’s inControl platform, BMO’s Mobile PayPass Tag users can easily monitor their spending by opting to receive email notifications that report the merchant and exact location of each PayPass purchase they make with their tag. The tag and email notification services are free to BMO MasterCard cardholders. PayPass technology is already embedded in more than seven million of BMO’s MasterCard credit cards. The PayPass tag for mobile devices simply makes using PayPass that much easier — you don’t even have to pull your card out of your wallet.
“We know that Canadians’ use of cash for smaller-value purchases is based on their desire to get in and out quickly when buying day-to-day items like gas, a quick lunch or a coffee,” said David Heatherly, VP, Payment Products, BMO Bank of Montreal. “PayPass is part of the movement toward a ‘cashless’ society. It’s faster and more convenient than cash or debit, which requires a swipe and PIN.”
Along with speed and convenience, PayPass tag users have the same zero-liability purchase protection and anti-fraud capabilities available on all BMO MasterCard products. And they can collect the same rewards that they earn on their BMO MasterCard credit card, which means PayPass users earn rewards on their total spend and collect more rewards faster.
Merchant Acceptance of PayPass Technology Growing Quickly
“Canadians tell us they prefer simplified, electronic payment methods. Given the prevalence of smartphones, and a quickly expanding network of PayPass merchants, we think mobile PayPass is poised to take off as a popular payment method for Canadians,” said Scott Lapstra, Vice President, Emerging Payments, MasterCard Canada.
According to Mr. Lapstra, PayPass transactions account for nearly 10 per cent of all MasterCard credit card transactions in Canada, with the average PayPass transaction at just over $40 – and close to 50 per cent of those transactions being for purchases of $25 or less.
MNO’s Collaborate to Establish Hungarian Mobile Wallet Association
Hugary’s Magyar Telekom, Telenor and Vodafone have joined with three market leading operators–MasterCard, OTP Bank and SuperShop–to establish the Hungarian Mobile Wallet Association. The aim of the Association is to design and articulate recommendations for mobile NFC service standards in Hungary, and to submit proposals towards the successful implementation of the service.
Designed to operate over very short distances, Near Field Communication is a wireless switching technology, which facilitates contactless communication and exchange of data between two or even several devices over a secure channel.
The use of contactless bank cards (e.g. PayPass) through the mobile phone constitutes only one pillar of the service. Equally important are other features such as loyalty cards, coupons, travel and entrance tickets, etc. Services that are based on NFC technology are capable of ensuring new and highly attractive customer experiences through their speed, ease of use, innovative features and the possibilities provided by the large and interactive screen of the mobile phone.
This united move of Hungary’s MNOs may help establish Hungary among the first countries where mobile NFC services are launched in Europe.
Source: Hungarian Mobile Wallet Association
Gemalto Mobile NFC Payment Application Certified by MasterCard
Digital security company, Gemalto, has announced the first UICC-embedded software application compliant with Mobile MasterCard PayPass M/Chip 4, the brand new MasterCard payment specification designed for mobile near field communications (NFC).
The software application and the UICC have both successfully achieved the compliance assessment and security testing certification in accordance with MasterCard’s highest chip security requirements.
The certification paves the way for mass commercial rollouts of NFC payment across the world. In the UK, Gemalto is already partnering with a global, first-tier financial institution and a world leading mobile operator, to implement the new MasterCard certified mobile payment application and carry out the solution’s first mass commercial roll out.
Gemalto’s software application embeds the Trusted Service Management interface for PayPass. This feature enables mobile account issuance and over-the-air management. Its handset interface makes mobile NFC payment convenient—for example allowing consumers to manage the new payment means and check transaction history. It also allows consumers to define their mobile Personal Identification Number (PIN), a code of their choice, through their phone. The mobile PIN is a new cardholder verification method used notably to secure operations such as account top-up from the mobile phone.
The Gemalto mobile NFC payment application can be configured to cover all card portfolios including debit, credit and prepaid. For prepaid, the software application lets consumers to top-up their prepaid accounts directly from their mobile phones.
“We are pleased to collaborate with Gemalto to broadly expand the use of mobile payment services,” commented James Anderson, vice president, Mobile, MasterCard Worldwide. “Leveraging the interoperability of MasterCard PayPass, Gemalto’s effort will enable cross-border mobile NFC payment, adding ease to the fast-paced lifestyles of more and more consumers across the world.”
“This new certification from MasterCard makes Gemalto the first on the market for this mobile product and will enable banks and wireless operators to offer a secure, innovative and convenient payment means to their entire customer base,” added Jean-Claude Deturche, senior vice-president of mobile financial solutions at Gemalto. “Gemalto is committed to supporting its customers in their large scale deployments of mobile NFC payment, with a complete mobile contactless offer.”
Source: Gemalto