The pre-paid 'debit express' system was developed by two-year old Toronto-based start-up Dexit. The initial launch of the product focuses on the Toronto downtown core and includes 22 national chains as well as almost 40 independent merchants.

The Dexit tag can be loaded from any Canadian bank account. Ongoing top-ups may be made at any time for a charge of $1.50. Consumers can spend up to $100 a day using their tags and Dexit provides detailed transaction records. The tag itself is designed for non-cash settlement of purchases costing under $20.

Tracey Black, associate vice-president, ABM and card strategies at TD Canada Trust says: "If you look at whats happening in the payments category and the movement away from cash toward electronic payment and prepaid options, the strategy to fill the smaller transaction category is right on target."

A spokesperson for National Bank says Dexit has been well received by employees in internal trials. "Dexit is a natural fit for busy people who want to come in and literally, in a matter of seconds, be able to pay for their coffee, or newspaper, and get on with their day," says Michel Lozeau, SVP, e-commerce, National Bank of Canada. "The time is right for this kind of payment method and we can see this quickly gaining popularity across North America in fast food restaurants, movie theatres and convenience stores."

Telus Mobility will be issuing special Dexit tags that can be placed on client mobile phones and used in the same way as the regular tag. The tag itself uses radio frequency identification (RFID) technology to allow consumers to make their purchases.