Austria preps NFC-based mobile wallet

Austria preps NFC-based mobile wallet

A collection of heavyweight banks, card firms and telcos have joined forces in Austria to build an open, nation-wide standard for NFC-based mobile wallets.

Austria Card, Card Complete, Drei, Erste Bank, First Data, MasterCard, Nexperts, PayLife Bank, T-Mobile and Visa have all signed up to the effort, which is preparing a pilot for the autumn ahead of a full roll-out next year.

Using an NFC SIM provided by the telcos, the system will let customers make payments - and use loyalty cards and coupons - at contactless Visa and MasterCard terminals with a tap of their handsets.

The partners are stressing their commitment to open co-operation as they seek to bring their system to the world of commerce, transport, ticketing, security, and banking.

Comments: (3)

A Finextra member
A Finextra member 19 September, 2013, 11:09Be the first to give this comment the thumbs up 0 likes

Well done, Austria!

A Finextra member
A Finextra member 19 September, 2013, 14:44Be the first to give this comment the thumbs up 0 likes

Just goes to show what can be achieved with some level of cooperation and cohesion!

Jan-Olof Brunila
Jan-Olof Brunila - Swedbank - Stockholm 20 September, 2013, 07:49Be the first to give this comment the thumbs up 0 likes

How do Austrians think? The upcoming EU area interchange fee regulation will cap the interbank fee for debit cards to exactly 0,20% - for a one Euro NFC payment the issuer will earn 0,2 cents. This does not likely cover the changing cost for the transaction that include cost for card scheme license fee, clearing/settlement, posting to account, exception handling and distributor compensation - if any - to telco. Either banks make a loss or the consumers needs to pay for usage - which is likely to curb usage... The LVP business case is going to be challenging in the new "level playing field" Europe.

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