Agreement between Canadian Banks and Telcos
- CIBC Bank and Telecommunications Group Rogers Communication have announced an agreement enabling the customers of both companies to make contactless payments using their smartphone. The system is expected to be up and running by the end of the year.
- Customer purchases will be charged to their CIBC credit cards. They benefit from the same loyalty rewards when paying with their mobile phone as with their card.
- This is Canada's first NFC-based joint mobile payment solution. In the initial stages only 750,000 customers equipped with a compatible Blackberry mobile phone will be able to use this service.
Source: Press release
- It is the first time that a major agreement of this type has been reached between a bank and a telecom company in Canada. Rogers will allocate space on the device’s SIM cards to store credit card-related data.
- The number of compatible mobiles is also growing fast. It is expected that Rogers will increase their number from a current 300,000 to 750,000 by the end of the year. 50% of all Canadian phones should be equipped by the end of 2014.
- Security is extremely important for both partners. If they wish, customers can protect their transactions using a PIN code.