Make your phone your wallet: Rogers bringing mobile payments to Canadians

CIBC and Rogers Unveil the Future of Mobile Payments

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

For more information, check out our post on RedBoard Biz about the basics of contactless payments, and watch for more news from us over the next few months as we kickstart mobile payments in Canada.

Are you excited about the prospect of using your smartphone for mobile payments?

Serda is a regular contributor to RedBoard

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  1. I’m confused as to rogers roll in this? I have a phone with built in nfc, credit card companies provide the credit and the point of sale devices. My phone nfc’s their pos.. Is it just that the sim card holds the data instead of built into the phone?

    • RogersNicolas says: May 15th, 2012 a 7:02pm

      Hi Chris,

      On our end, we’re providing secure distribution, storage and servicing of virtual cards.

  2. Let’s not have typical Rogers “activation fees” and monthly charges to have the functionality. We’re already paying enough with our monthly service fees.

    • RogersNicolas says: May 15th, 2012 a 7:03pm

      Hi Hammy,

      There are no additional fees for this service. This new mobile payment capability will let customers use their Rogers smartphone as a CIBC Visa or MasterCard.

  3. You can’t beat the traditional leather wallet. I’d prefer to pull out my wallet and put it on a card or pay with cash than to use mobile banking. Like seriously, how long does it take you to pull out a credit card? It’s probably quicker than taking out your phone, enabling NFC, and then entering a password to pay. While this idea seems quite innovative, I think it might just be more hassle than it might be worth. But only time will tell, so let’s see what Rogers brings to the table.

    • Where I look forward to one day not carrying a wallet and phone just having one to do both. First is payments then one day ID will be ported over too. Once they work out security issues with losing your phone and someone having all that data it would be great. No need to cancel your stuff when you lose your wallet just login and change the device your stuff is associated with.

    • It is indeed a hassle to carry both a wallet and a phone. The wallet will become redundant when all of the stuff I carry in it can be virtualized onto my phone. I, for one, will be very happy when I no longer need to carry a wallet!

  4. My Rogers phone is giving up on me

    • RogersNicolas says: May 16th, 2012 a 9:12am

      Sorry to hear that, Patricia. Have you reached out to Customer Care?
      You can contact them via Twitter (@RogersHelps), Facebook or traditional ways.

  5. When you say “later this year”, is there a specific time-range?
    I assume this announcement would only come if you were close to ready to roll out.

    • RogersNicolas says: May 16th, 2012 a 9:10am

      Hi Chris,

      We don’t have any time frame to share at that time but we’ll make sure to keep everyone posted!

  6. Do you think that Rogers will unable payments via other credit sources, as of for now I got a prepaid card that is already link to my phone with Rogers (ZOOMPASS) it would be great if I could use this card instead of the plastic card when possible as well as another credit card by CIBC.

    And also will any NFC enable devices (if on Rogers but not one of Rogers devices) be able to use the service.

    Thanks.

    • RogersNicolas says: May 16th, 2012 a 11:40am

      Hi Claude,

      Thanks for your feedback. At launch, the solution will be available on the BlackBerry 9900 on the Rogers wireless network. We expect to roll this payment capability out to other devices in the near future. We’ll keep everyone posted!

  7. I’m not sure I trust Rogers enough to have them be a part of all my credit card transactions.

    • It doesn’t really sound like Rogers is much involved : “On our end, we’re providing secure distribution, storage and servicing of virtual cards.” Really sounds liek some card infor will be stored on your sim card (which is too bad if I want to switch sim cards while traveling)

      I assume in the future you will just be able to get an app for your specific bank/cc company and it will leverage and nfc hardware in your phone of choice. People may have multiple phones/handsets/sim cards and will really just want to login to and app and use it instead.

      Maybe I want to use google wallet, maybe I want to use apple wallet, maybe I want to use rim wallet.. I can’t see those big companies passing up the chance at 0.5% off of every transaction..

      • Okay then, let me rephrase:

        I’m not sure I trust Rogers enough to have them “distribute”, “store” and “service” my “virtual credit card”.

        • RogersNicolas says: May 23rd, 2012 a 10:44am

          Hi Bruce,

          Obviously, security is something that both Rogers and CIBC are taking very seriously.

          There are multiple levels of passwords required to access cards in the wallet. Virtual versions of your credit card have the same security standards as your physical card – payment networks like VISA and MasterCard must certify the use of their credit cards before allowing banks and carriers to offer them to wireless customers, in addition to the passwords required.

          To open a virtual card in a mobile wallet on your smart phone, you will have to authenticate yourself with a password and once you open the wallet your card will only be active for thirty seconds. After that, access shuts down.

          Finally, in the unlikely event a client was the victim of fraud they would be protected by CIBC’s Online Security Guarantee which would reimburse them for any funds lost as a direct result of fraud.

  8. Do you plan to make it works with Visa Desjardins ?

    • RogersNicolas says: May 16th, 2012 a 11:11am

      Hi Maxime,

      We don’t comment on future plans that may/may not launch but we’ll definitely keep you posted if/when we have any more news to share!

  9. I am a very satisfied Pay As You Go user, also we use RBC as our bank. Any chances it will ever be expanded? And will it work for prepaid users? Thanks :)

    • RogersNicolas says: May 16th, 2012 a 12:14pm

      Hi Sophia,
      Thanks for your feedback! Mobile payments are coming to Canada and we are actively working in this space.
      We’ll make sure to let everyone now when we have more news to share.

  10. CIBC only? That’s lame as heck.

    So what about Google Wallet, is it dead/unsupported forever now?

    • It’s really up to the other banks to get on board. Really Rogers is only providing access to the sim cards it seems.. I don’t know for sure but have a feeling google wallet has nothing to do with the sim cards and should just run as an app. It’s up to google to bring it out in Canada.. As for other banks there is nothing stopping them from doing the same.. The blackberry offers api to use the nfc hardware and probably don’t actually need access to the sim card.

      Maybe someone with more technical knowledge could chime in from the rogers side?

  11. Charles Forest says: May 18th, 2012 a 10:19am

    Why not allowing Google Wallet instead of making another clone service?

  12. So…to recap, if you have a CIBC credit card (negative) and a Blackberry 9900 (people still own Blackberries?), you’ll be eligible to use this ‘solution’ at some unspecified date in the future.

    Have I got that right?

    What about other banks?

    And other phones? Like ones people actually use, for instance.

    How about instead of encouraging people to rack up more credit card debt, you make it available for use with the good ‘ol debit card.

    Now that would be groundbreaking

    This announcement is underwhelming…little more than a marketing exercise, really.

    Let us know when it’ll be available to all Canadians, not just CIBC credit card holders who refuse to trade in their Blackberry.

  13. Funny…. I asked a Rogers rep at a store and they completely falsified this whole discussion said that its just rumours and you never know if this will ever come true.