Blik allows users to make NFC payments directly from a bank account

Polish consumers will soon be able to use their NFC Android device to make tokenized contactless payments at the point of sale (POS) directly from their bank account via their mobile banking app without needing a debit or credit card.

FACTS

• With this new system, all you have to do to make a payment is bring your phone close to the payment terminal after unlocking it (the NFC function must be activated on the phone). The phone doesn't even need to be in range of a mobile network or have an Internet connection during payment.

• Polish mobile payment service provider Blik is making contactless functionality available in the applications of six of the 17 banks that support its mobile payment solution.

• BLIK contactless payments were developed based on tokenization technology - Mastercard Digital Enablement Services (MDES).

Key figures:

• The Blik service was created 6 years ago
• It is available to more than 16 million users of banks' mobile applications in Poland
• Almost half of all transactions made in the mobile applications of banks in Poland are BLIK payments.
• More than 1 billion transactions have already been made since the system was activated. There were 44 million in 2020 alone.
  • More than 3/4 of the transactions made with Blik are online payments,
  • more than 9% are P2P transactions,
  • slightly less are F2F transactions in the terminals
  • and almost 7% are ATM withdrawals.

CHALLENGES

• Testing new types of settlements: Unlike EMV, in the case of Blik contactless transactions carried out in POS terminals operated by acquirers who are Blik participants, the settlement will be carried out directly between the acquirer and Blik.

• Expand usage: It is no longer necessary to have another physical payment instrument to pay with a phone at a land terminal. This solution will further popularize mobile payments among people who have never done it before.

MARKET PERSPECTIVE

• BLIK Contactless is on par with technology giants such as Apple or Google in terms of security or convenience for the user in the fixed channel (POS). All the customer has to do is unlock the device and move it closer to the payment terminal.