For years we’ve heard the promise of mobile payments, carriers, credit card companies and eCommerce players such as Paypal have all taked about this space for years. Jack Dorsey’s Square on many levels was the first to really bring the discussion to a physical product and get the ball rolling, as a result the Twitter Co-Founder has helped to foster an ecosystem that represents billions of dollars being spent around the world. This morning, CIBC & Rogers held a media event where they announced a new partnership that will see the two launch a mobile payment solution. With their new solution in place, consumers will be able to literally “tap and go” with their mobile devices to make payments. With “Near Field Communications” (NFC) enabled smartphone running on the Rogers network, consumers will be able to make payments to merchants by tapping special terminals that read your information stored on the SIM chip within your smartphone.
“As the leader in delivering mobile financial services innovations in Canada, we are pleased to introduce yet another innovation in the market that will shape the payments experience of the future,” commented David Williamson, Senior Executive Vice President, Retail and Business Banking, CIBC. “By teaming with Rogers, CIBC clients will soon enjoy the convenience of paying at the checkout with their mobile device while enjoying the existing benefits of their CIBC credit card, including loyalty rewards.”
“Canadians are embracing new technologies at an accelerated pace and we know they’re interested in using their smartphone for mobile payments,” said Rob Bruce, President of Communications, Rogers Communications. “We’ve been laying the foundation for mobile commerce and the ecosystem is ready to give Canadians the convenience, security, and peace of mind they deserve,” said Bruce. “Today’s announcement with CIBC represents an important first step toward a whole new world of mobile transactions which is a key growth area for the company.”
According to their pres release, some of the features include:
- Full access to a client’s existing CIBC credit cards on their smartphone at no extra cost – whether Visa or MasterCard – this gives clients the opportunity to earn loyalty points on purchases as they do today.
- Multiple layers of security – Paying with your NFC-enabled smartphone will be as secure as using your credit card today. Clients will receive the same fraud protection they do with their contactless credit card, and secure encryption technology will add to the layers of security already in place on credit card purchases. Clients will also have the option to set additional password protection.
- No “stickers” on your phone – this new payment capability will leverage the secure SIM card inside a mobile device for payments, meaning clients can manage their credit card credentials on a secure platform, and won’t need to worry about stickers attached to their phone.
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Their new solution will only work with BlackBerry smartphones, but Rob Bruce expects to see it working on Apple and Android-based devices in the near future, and further commented that it is in the best interest of manufactures to deliver devices that are driven by consumer demand and need.
During the Q & A period of the session the following was discussed:
- Q – When will the mobile payment solution launch?
- A – No specific date was given, other than “soon”
- With yesterday’s
- Q – Are there any additional fees to consumers or merchants?
- A – No
- What other consumer information will be captured?
- Nothing additional will be captured by the solution of your mobile device
- Can this solution be used outside of Canada?
- Yes, anywhere that you can use a credit card today, you will be able to use this mobile payment solution tomorrow
Overall it is a smart move on the part of Rogers and CIBC, and another way that Rogers will look to lock customers into contracts.