When it comes to mobile banking, Canadians are the fastest adopters of mobile apps. Did you know that more than 2.5 million people in Canada are using mobile banking applications for daily banking? That’s 38% of smart-phone users with data plans.
Today, we announced an agreement with CIBC to launch Canada’s first mobile payment solution, allowing Canadians to pay with their CIBC credit card at the checkout counter using their Rogers “Near Field Communications” (NFC)-enabled smartphones. This means that later this year, Rogers customers will be able to use this payment capability at merchants across Canada where contactless credit card payments are accepted.
This announcement is the first time a bank and a wireless carrier have joined forces to offer a commercially available mobile payments solution to Canadians that leverages the SIM card inside an NFC-enabled Rogers’ smartphone. This new payment solution aligns to guidelines announced yesterday by the Canadian Bankers Association for mobile payments in Canada.
What is Near Field Communications?
Near Field Communications – NFC – is a radio communication technology that can be used with mobile devices. NFC allows you to bring together two devices in close proximity of one another to exchange data and transactions. In the case of mobile payments, the NFC smartphone makes the credit card data stored on the SIM card ready to capture by the contactless terminal.
What does this mean for you?
It means full access to your existing CIBC Visa and MasterCard credit cards on your smartphone at no extra cost.
- Multiple layers of security – Paying with your NFC-enabled smartphone will be just as secure as using your credit card today. You will have the same fraud protection that is offered on your contactless credit card and to access your wallet, depending on your settings, you may be required to enter a password.
- No “stickers” on your phone –Some current mobile payment options use a sticker (around a third of the size of a standard credit card) to convert a mobile phone, into a contactless payment device.This new payment capability will leverage the secure SIM card inside a mobile device for payments, which lets you manage your credit card credentials on a secure platform, and you won’t need to worry about stickers attached to yourphone.
What Canadians are saying about the mobile wallet?
In our first Rogers Innovation Report, we asked Canadian smartphone and tablet users about the idea of mobile wallet. Here’s what they had to say:
- 61% said the mobile wallet will make their lives better
- 79% said they expect to make more purchases on their smartphones in the future
- 43% felt that the traditional wallet will be replaced over the next few years
Are you excited about the prospect of using your smartphone for mobile payments?
Serda is a regular contributor to RedBoard