18 July 2018
Visit www.avoka.com

CIBC and Rogers unveil mobile payments service

02 November 2012  |  6958 views  |  1 NFC 4

Canadian bank CIBC and telco Rogers have roped in Olympic gold medal-winning triathlete Simon Whitfield to carry out the country's first NFC mobile credit card payment.

CIBC and Rogers outlined plans to collaborate in May, the first time a bank and a wireless carrier have joined forces to offer a payments service to Canadians that uses the secure SIM card inside an NFC-enabled handset.

The new CIBC Mobile Payment App will initially be available on the BlackBerry Bold 9900 and BlackBerry Curve 9360, with NFC SIM cards available to order online. Android and Windows Phone 8 modles will be introduced in 2013.

A CIBC-commissioned poll of 2026 people suggests smartphones are increasingly common in the country, owned by 44% of respondents, up from 33% in 2011. A third of these already bank through their handset.

However, less than half of smartphone owners say that they would consider making mobile payments. Predictably, there is slightly more enthusiasm among the young: 51% of 25 to 34 year olds are open to the idea, compared to 48% of 45 to 54 year olds.

Rewards could be an important tool in enticing users, with 59% of those polled citing them as an important factor in deciding whether to make credit card purchases using their phone.

David Williamson, group head, retail and business banking, CIBC, says: "Canadians are ready to start paying for everyday items using their mobile device, but they want all of the benefits and rewards they've come to expect from their credit card."

Research by MasterCard shows that since 2005, Canadian consumers have made over 240 million transactions with their MasterCard PayPass-enabled credit cards or devices. This is by far the highest number of Tap & Go credit transactions in any country in the world in the same time period.
KeywordsEFTPOS

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 05 November, 2012, 06:02

To make a mobile payment on an NFC mobile, payers have to fidget around with their smartphone, switch on NFC, fire up the mobile wallet app, choose the right card, hope for network coverage, and so forth. Didn't realize until now that it takes an Olympic triathlon gold medal winner to jump so many hoops! 

On a more serious note, "...they want all of the benefits and rewards they've come to expect from their credit card." brings up an important point. Customers will qualify for the basic rewards by using their credit cards, whether in the plastic or mobile form factor. Offers expected to stimulate the shift in consumer preference to the mobile form factor should then be in excess of the baseline rewards anyway provided by the card issuer. Wonder who is going to fund those additional rewards. 

1 thumb up! 1 thumb up!
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Square arrives in Canada

Square arrives in Canada

24 October 2012  |  6865 views  |  1 comments | 11 tweets | 1 linkedin
Canadian carriers offload Zoompass joint venture

Canadian carriers offload Zoompass joint venture

17 October 2012  |  4829 views  |  0 comments
Canadian government to extend plastic card code to mobile payments

Canadian government to extend plastic card code to mobile payments

21 September 2012  |  7012 views  |  1 comments
Starbucks Android app arrives in Canada and UK

Starbucks Android app arrives in Canada and UK

11 July 2012  |  5765 views  |  0 comments
Intuit takes GoPayment to Canada

Intuit takes GoPayment to Canada

10 January 2012  |  7554 views  |  0 comments
Canadian wireless carrier Rogers files for banking license

Canadian wireless carrier Rogers files for banking license

07 September 2011  |  10032 views  |  0 comments
Canada's mobile operators to establish m-payments system

Canada's mobile operators to establish m-payments system

09 November 2005  |  9084 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://secure.vasco.comVisit info.nice.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Metro Bank opens developer portalMetro Bank opens developer portal
9777 views comments | 5 tweets | 14 linkedin
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
9521 views comments | 3 tweets | 7 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9327 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
8545 views 19 comments | 14 tweets | 30 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
8025 views comments | 1 tweets | 5 linkedin

Featured job

to GBP Six-Figure Base, double ote, benefits
London, UK

Find your next job