RBC and VISA to launch mobile phone payment pilot
First in Canada to "road-test" cellphone payment
technology and services
TORONTO, November 1, 2007 — RBC and Visa Canada
are teaming up to be the first in Canada to pilot a mobile
payment service that uses cellphones rather than traditional
credit cards for making Visa purchases. This Ontario-based
pilot is expected to be completed in 2008, and involve multiple
phases including in-lab testing, an RBC staff pilot and a
consumer trial.
As part of the pilot, mobile devices will be embedded with
Near Field Communication (NFC) contactless chips that will
enable users to make purchases using the Visa payWave feature
just as they would with a contactless payment card. Designed
to be a fast and convenient way for consumers to pay for small
purchases, mobile phones can simply be waved at Visa payWave
checkout readers. The functions to be tested in the pilot
include secure delivery and storage of account information
to the mobile device; mobile payments at retailers; storing
and redeeming mobile payment coupons; and mobile account management.
"Handheld communication devices are already as indispensable
as wallets," said Anne Koski, head, Payments Innovation
in RBC's Cards division. "Many of our clients would appreciate
the convenience of making purchases through their mobile phones
rather than fumbling for cash when trying to get through a
busy checkout line. Mobile devices, much like electronic payments,
have become a mainstay in people's lives, so combining the
two securely makes a lot of sense."
RBC's launch of mobile payments in Canada is closely aligned
with the country's migration to chip card technology. RBC
is currently participating in the payment industry chip trial
taking place in the Kitchener-Waterloo area by issuing chip
cards to their clients. Widely used in other parts of the
world, chip-embedded credit cards are designed to provide
increased protection against counterfeiting and skimming fraud.
Similar security features will be incorporated into the mobile
device payment technology.
As part of the chip card trial RBC will also provide many
clients with the Visa payWave contactless payment feature
on their chip card. This allows users to wave their credit
card near a Visa payWave reader rather than having to swipe
the card or insert it into a chip reader. These transactions
do not require a signature or a PIN to complete the purchase.
"RBC was the first Canadian FI to offer a credit card
with chip technology nationwide," added Koski. "We
were the first to announce our intentions to offer Visa payWave
on our cards and we are pleased to be at the forefront of
another new technology that has the potential to transform
the way consumers make payments. Visa's mobile platform is
providing us with the ability to develop new and secure payment
solutions to meet the needs of our clients."
"The launch of the Visa platform is the latest demonstration
of our mobile vision - to provide the applications and enabling
technologies for innovative mobile programs that bring value
to financial institutions, mobile operators, merchants and
their customers," said Michael Bradley, vice president,
Products, Visa Canada. "We're thrilled that RBC is leveraging
the Visa mobile platform and today's announcement marks a
significant milestone in its development of innovative payment
solutions."
RBC is the leading issuer of chip cards in Canada, processing
over 11 million chip transactions to date worldwide.
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