Engaging, Enabling and Evolving Commerce in Canada since 1989

April 2013 ACTion Newsletter


  1. Editorial Comment - Time to invest: what do you think?
  2. Credit Unions Are First In Canada To Let Users Deposit Anywhere With Smartphones
  3. First Interac Flash Debit Transactions Made From A Mobile Phone
  4. MCX Selects Gemalto For Mobile Commerce Platform
  5. Ingenico Introduces Mobile Fingerprint Payment Solution
  6. Rogers Communications To Launch Loyalty Rewards Program This Year
  7. Visa Makes Instant Person-To-Person Payments Possible Anywhere In Europe
  8. Barclaycard Germany Signed Multi-Year Contract For Debit And Credit Cards With Gemalto
  9. MasterPass Digital Wallet Launches In Canada
  10. Isis, USA Technologies Team For Mobile Wallet Loyalty Program
  11. G&D To Act As Trusted Service Manager For Telefonica's O2 Wallet
  12. Over a Half Billion NFC Devices on the Market Within a Year
  13. NBS Technologies Announces Xpressi Trusted Service Manager Receives MasterCard Approval
  14. Millennials Vs. Boomers: Who Will Boost Consumer Spending?
  15. Worldpay, VeriFone Expand Efforts To Bring NFC/EMV-Ready Payment To Merchants
  16. Desjardins Group and Crédit Mutuel-CIC Group Launch International Payment Solutions Partnership
  17. CPI Card Group Expands EMV Card Manufacturing Capabilities To Support EMV Migration In The U.S.
  18. Apriva Launches AprivaPay Plus Mobile POS Application
  19. UnionPay To Market Prepaid Card Through U.S. Bank Branches
  20. Avant-Garde Marketing Solutions, Inc. Adds Ingenico's Products To Its EMV-Ready Device Portfolio
  21. Carta Worldwide Announces Production Service To Deliver Live Turnkey NFC Mobile Handsets
  22. Mobile, Virtual, and Traditional Checkout: What's a Retailer To Do?

ACT Canada Partner:


Visa Canada Inc.
Visa operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.



Canadian Tire Financial Services ~ member since 2006
Canadian Western Bank ~ member since 2010
Credit Union Central of Canada ~ member since 1990
MSC ~ member since 2010


Carta Worldwide ~ member since 2012
Direct Cash ATM Management ~ member since 2010
EnStream LP ~ new member
Infineon Technologies, North America ~ member since 1998
Threshold Financial Technologies Inc. ~ member since 2009


AIMIA ~ member since 2010
Imperial Oil ~ member since 2010
Suncor Energy Products ~ member since 2010


EMA Partners Toronto ~ new member
Gamble Consulting ~ member since 2010
M. Blair Consulting Inc. ~ member since 2010



ACT Canada has launched a Job opportunities section on our web site. Please visit www.actcda.com to see the latest job postings in our industry.


There is a lot of movement in the market, so if you are looking for new employees, we are always aware of some great people. Please contact ACT Canada for more details – postings@actcda.com. Also, see the careers section of our web site for the resume of an experienced Strategic Sales & Business Development Executive Seeking a Sales Leadership Opportunity.



NFC Solutions Summit 2013
May 15-16, 2013
Presented by The Smart Card Alliance and the NFC Forum
Hyatt Regency San Francisco Airport
Burlingame, CA, USA

Cardware 2013: Payment Insights
June 18-19, 2013
Marriott Gateway on the Falls
Niagara Falls, ON, Canada
ACT Canada members receive discounts


ATMIA Canada Conference 2013
June 25-26, 2013
Montreal, Canada


Source: Catherine Johnston, President & CEO, ACT Canada (04/30)

Time to invest:  what do you think?

Last month I asked 34 questions related to mobile payment as part of my presentation at the CWTA conference.  They weren't about technology or business cases; they were questions that consumers, merchants and regulators would ask.  Judging from the number of people who asked for a copy of these questions, it seems that some, if not most of them, had not been considered by the audience.  One person pointed out that until these questions are answered, it will be hard to see mobile payment reach its potential.

The answers are not difficult to get but the trick is in knowing who to ask.  We could all make intelligent guesses but that isn't good enough when you are going to invest millions of dollars. It doesn't matter whether it's mobile payment or any other payment innovation.  In the earliest of stages, merchants, consumers and regulators should be asked a number of questions.  In answering them, new questions may arise.  This is a step that is tricky because you don't want to give away your strategy, but if you do it well, the rewards for you and your organization can be significant.  Time to market and risk can be decreased, consumer and merchant acceptance increased.  The need to tweak and retrofit can be eliminated.  It seems like common sense, but it isn't common practice.

ACT Canada is a stakeholder association.  We have seen these benefits work for our members in our strategic leadership teams.  I invite you to join us and profit from these benefits, year round and at Cardware 2013: Payment Insights.

After all, it's what we know - not what we think, that builds our success.


Source Central 1 (04/15)

Tap. Snap. Send. Central 1 Credit Union (Central 1) and three credit unions are poised to launch Deposit Anywhere, a new mobile banking app feature that makes it easy to deposit a cheque using a smartphone.

Deposit Anywhere is simple, secure and saves time. Users can deposit a cheque anywhere, anytime, in less than a minute, without having to visit a branch or find an ATM.

Credit unions will be the first financial institutions in Canada to offer remote deposit capture – the ability for members to use the camera in their mobile device to snap an image of the cheque they want to deposit and use their mobile banking app to deposit the item electronically. No more taking a cheque to a branch or an ATM. Deposit Anywhere is Central 1's branded mobile deposit service.

Central 1 is working with Meridian in Ontario, Affinity Credit Union in Saskatchewan and Westminster Savings Credit Union in B.C. to launch Deposit Anywhere as part of their mobile banking applications.

Starting on April 17, members of Westminster Savings can use Deposit Anywhere when they download the free Westminster Savings mobile banking app from the Apple App Store or iTunes. Meridian and Affinity credit unions plan to launch the Deposit Anywhere feature in May.

Deposit Anywhere will be broadly available for credit unions to begin implementation this June.

"We are constantly developing new, innovative ways for credit unions to meet the changing needs of their members," said Oscar van der Meer, Chief Technology Officer at Central 1, the trade association and financial facility for credit unions in B.C. and Ontario. "We help them keep in the lead of the rapidly developing financial services market."

"Available through Westminster Savings' mobile banking app, Deposit Anywhere will provide a highly convenient and secure way for our small business members and individuals to deposit cheques without going to an ATM or branch," said Maury Kask, SVP and Chief Customer Experience Officer at Westminster Savings. "We are seeing rapid growth in the use of mobile banking and we know this time-saving feature will be very attractive to our members."

Using this new feature, all that credit union members need to do is log in to their mobile banking app with their smartphone or mobile device, take pictures of the front and back of the cheque, select the account where they would like to deposit the funds, enter the details and send the information to their credit union.

Once received, the money is deposited immediately into their account and a confirmation number is sent to them.

"As a credit union committed to having our members' backs, we are excited to be working with Central 1 on this innovative mobile banking app," said Gary Genik, Meridian's Senior Vice President and Chief Information Officer. "With Deposit Anywhere, our members will have the convenience to deposit their cheques on the go, anywhere, anytime – another great feature that expands Meridian's digital banking services."

"Deposit Anywhere enhances our ability to meet the changing needs of our members today and in the future," says Atul Varde, Senior Vice President and Chief Information Officer at Affinity Credit Union. "Mobile banking is growing in popularity with our members and the introduction of our next-generation mobile banking apps with Deposit Anywhere will provide additional solutions to those wanting to access our services easily, quickly and when it is convenient for them."

Central1 and Credit Union Central of Canada are members of ACT Canada; please visit www.central1.com & www.cucentral.ca.


Source: Interac (03/27)

Today marked the successful completion of the first Near Field Communication (NFC) mobile debit transactions in Canada, and among the first globally from a domestic debit network. Holding their mobile phones in front of an InteracFlash point-of-sale terminal at a McDonald's restaurant, participants demonstrated how this new mobile payment option will work, paying for menu items securely and immediately using funds deducted directly from their RBC Royal Bank account. Mobile Interac Flash brings Interac Flash, Canada's first and only contactless debit payment, to the mobile payments space.

"This achievement in mobile debit innovation helps solidify our role in the mobile payments space in Canada," said Mark O'Connell, President and CEO, Interac Association and Acxsys Corporation. "Soon, Canadians will be able to use their mobile phones to pay with Interac Flash quickly, conveniently and securely when making everyday purchases – bringing added value not only to consumers, but also to the merchant community and our partner financial institutions."

Today's transactions used BlackBerry smart phones, equipped with NFC functionality and an Interac Flash application, to make contactless debit transactions at a Toronto area McDonald's restaurant. The Interac Flash application securely communicated the financial information to complete the contactless debit transaction in real time.

This achievement in mobile innovation was accomplished in partnership with McDonald's Restaurants of Canada, the participating merchant, RBC Royal Bank, the participating financial institution, Moneris Solutions, the payment service provider facilitating the transactions, and BlackBerry, the mobile device provider.

Recognizing the value of this innovative product enhancement, RBC Royal Bank will be providing their customers with the speed, convenience and security of mobile Interac Flash when it comes to market, anticipated later this year. This announcement coincides with RBC's decision to include all Interac Flash transactions as free debit transactions for personal banking accounts, a decision Interac Association/Acxsys Corporation applauds.

"This free mobile debit option will benefit both our clients and our merchants. RBC clients will be able to use their mobile devices to make debit payments when and where they wish to make them – and then to immediately check their online bank balance from those same devices," explained Dave McKay, Group Head, Personal and Commercial Banking, RBC Royal Bank. "We know merchants want fast, secure and low-cost transactions and that is exactly what Interac Flash helps ensure."

The successful transactions that have taken place today set the stage for a roll out of mobile Interac Flash in the coming year.

"We're pleased to offer our customers new and convenient payment options like mobile Interac Flash," said Dave Hederson, Senior Vice President & CFO, McDonald's Restaurants of Canada Limited. "As our customers' purchasing needs and preferences continue to evolve, we are committed to providing them with relevant ways to interact with us as their favourite place to eat and drink."

"We help our merchants, such as McDonald's, enable innovative and economical payment solutions, which is why we are thrilled to help facilitate today's first mobile Interac Flash transaction," said Jeff Guthrie, Chief Sales and Marketing Officer, Moneris Solutions Corporation.

"We are excited to be part of the first debit transaction in Canada using NFC, and we continue to work with partners to give customers the convenience, confidence, and choice to pay with any type of card," added Frank Maduri, Senior Director, Product Management, NFC, Mobile Payments and Mobile Wallets at BlackBerry.

Interac Association is a member of ACT Canada and a Cardware 2013 sponsor.  Moneris is a member of ACT Canada and their subsidiary MSC is a Cardware 2013 exchange place expert.  Please visit www.interac.ca; www.moneris.com & www.msposcorp.com.


Source: PYMNTS.com (04/17)

MCX selected Gemalto for its unmatched expertise in mobile financial services and track record of being trusted by leading banks, governments, merchants and mobile operators and their customers all over the world.

The initial MCX wallet, which will be primarily barcode and cloud-based, will run on Gemalto's Allynis Mobile Payment platform. MCX will also leverage Gemalto's mobile wallet software for a rich smartphone application as well as development kits to enable retailers to embed the wallet functionality within their own applications.

Once it is fully deployed, the wallet will be accepted at all MCX members, an unparalleled, growing group of widely respected merchants that collectively operate more than 75,000 stores and process more than $1 trillion in payments annually. Consumers will have access to a personalized payment experience integrated with merchant offers, promotions, loyalty and location-based services, which they will be able to use at many of the large retailers at which they regularly shop.

"Gemalto's global experience and unparalleled expertise make it the ideal partner to develop a mobile wallet worthy of the stature of merchants backing MCX," said MCX's Dodd Roberts. "Our work with them over the past months leaves little doubt that MCX will benefit from their considerable technical expertise."

"The caliber and scale of the merchant organizations behind MCX creates opportunity to elevate mobile payments," added Jack Jania, Senior Vice President at Gemalto. "We are excited that MCX chose our technology to implement and deliver their roadmap towards convenient and secure retail payments on all smartphones."

Gemalto is a member of ACT Canada and a Cardware 2013 sponsor.  MCX is a member of ACT Canada. Please visit www.gemalto.com & www.mcx.com.

What are the implications of MCX on the Canadian market?  Join us at June 19th-20th at Cardware as MCX presents in the Merchant Breakout session.




Source: Planet Biometrics (04/18)

Ingenico has introduced a biometric-based mobile payment solution that targets the "last mile" when governments and financial institutions distribute services in emerging countries. The company's new iWB Bio Series leverages mobile and secure fingerprint technology.

According to Ingenico, more than 2.5 billion of the world's adults remain unbanked and do not have access to basic financial services. This fact is pushing governments and financial institutions to develop financial inclusion policies towards the lowest income segments. In parallel, some countries face population identity issues that hinder ID control, voting, healthcare programs and so on.

For both financial inclusion and government ID issues, Ingenico says that biometric technology is the key to identifying the population and delivering the right services to the right people. iWB Bio Series combines four authentication factors (Chip, PIN, fingerprint verification and GPS) with a complete set of payment options (Biometrics, Magstripe, EMV Chip & PIN, Contactless and NFC).

From a security perspective the devices are claimed to meet the highest standards (PCI PTS 3.1, IP65 and PIV-IQS), whilst embedding wireless connectivity (GPRS-Dual SIM, Bluetooth).

Ingenico is a member of ACT Canada and a Cardware 2013 exchange place expert; please visit www.ingenico.com.


Source: Loyalty 360 (04/25)

Aiming to improve its overall customer service levels, Rogers Communications plans to launch a loyalty rewards program this year.

Nadir Mohamed, the company's outgoing President and CEO, spoke about plans for a new loyalty rewards program at the Rogers Annual General Shareholders Meeting on April 23. Mohamed said the loyalty program would hopefully help enhance customer relationships.

Mohamed told shareholders that while it's important for the wireless, cable, and media company to look at the customer experience holistically, "there's no question we need to significantly improve customer service. We need to help our customers better understand what they get when they sign up and we need to do a better job supporting them once they do. This is a key priority for me and the executive team."

While details of the rewards program weren't revealed, a broad range of the telecom company's services will be recognized in the program. It will also extend to its banking and credit card services, which are expected to launch sometime this year. No launch date was given.

During his speech to shareholders, Mohamed said the company will focus on resolving the top reasons for customer calls. He says Rogers needs to help customers understand what they get when they sign up. Mohamed stressed improvement in customer service when he assumed the CEO position in 2009. Mohamed plans to step down in January 2014.

Some longtime subscribers have turned to the Rogers customer service department to request discounts on their payments, and they want the company to demonstrate that it "values their tenure," Mohamed said.

Looking ahead, Mohamed listed several priorities and topping the list was a companywide effort to improve customer service to build loyalty and reduce churn.

"We've also applied for a bank license so we can offer a credit card to strengthen customer loyalty and retention," Mohamed said. "And of course the Rogers credit card would be one of many cards in the mobile wallet."


Source: Visa (04/17)

Visa Europe announced two significant additions to its Visa Personal Payments mobile service: Multi-Currency and Immediate Payments. The new functions will enable consumers to make instant transactions from their mobile phone to any Visa cardholder in Europe, in any European currency.

The Multi-Currency feature, which will be available by the end of 2013, allows payments to be sent and received across borders, bringing international money transfers to mobile devices and simplifying what can often be a complex and expensive process for those wishing to send money to an individual in another European country.

Immediate Payments, launching in the UK this week with other markets to follow later in the year, makes it possible for consumers to receive money sent via Visa Personal Payments in a matter of minutes.

The Visa Personal Payments system now has 17 live and committed issuers across Europe. RBS and NatWest were the first in the UK to launch the service via their mobile banking app last month, which was downloaded by 1.7million consumers in its first two weeks.

Sandra Alzetta, Senior Vice President, Visa Europe, said: "Mobile payments have the potential to fundamentally change the way that people pay and are paid. The new Multi-Currency and Immediate Payments features combine the convenience of mobile device use with the ability to send money to 460 million Visa cardholders across Europe, solving a problem that millions of consumers face every day – giving money to another individual easily and securely."

Visa Personal Payments is a person-to-person payments service that enables anyone with a Visa credit, debit or reloadable prepaid card to accept payments from another Visa card without needing to share any account details.

Senders simply need to be registered for the Visa Personal Payments service and to know either the mobile phone number or Visa card number of the person they are sending a payment to. Payments are then initiated using a smartphone app offered by the sender's bank. To collect money, consumers don't need to be signed up for the service; they just need a Visa card, access to the internet and to submit a few basic details.

Visa is a member of ACT Canada and a Cardware 2013 sponsor; please visit www.visa.ca.


Source: Gemalto (04/29)

Gemalto announces that it will provide the swift and seamless migration of Barclaycard Germany's entire portfolio representing more than 40 credit and in addition three debit products. Under this multi-year agreement, Gemalto will provide the bank with a complete end-to-end solution encompassing personalization, and fulfillment from its local service center in Germany.

Barclaycard is part of the global Barclays banking group and this new contract further extends Gemalto's partnership with one of the world's leading payment service providers. Barclaycard has an impressive track record for innovation and an ambitious roadmap for the development of new products and services. Gemalto will provide extensive support for value added services, including the deployment of contactless payment technology.

"Gemalto is a preferred partner for the Barclays Group and we are confident that Gemalto will provide us good support for our growth aspirations in the German market," said Tim Martens, Head of Business Development for Barclaycard Germany. "There is a strong belief across all functions that we will benefit from the international experience and the global service model as well."

"Migrating their full card portfolio to Gemalto demonstrates the confidence Barclaycard Germany has in our banking solutions," said Christoph Siegelin, Vice President of Sales for Financial Services & Retail at Gemalto. "Just as Barclaycard UK has done for many years, the German office is trusting Gemalto to deliver the benefits of EMV-protected payment to their customers."

Gemalto is a member of ACT Canada and a Cardware 2013 sponsor; please visit www.gemalto.com.


Source: Moneris (04/11)

MasterCard Canada announced the launch of MasterPass, the future of digital payments, making Canadian consumers the first in North America to be able to register for MasterPass services.  MasterPass is an innovation that delivers value to both consumers and merchants for its simplicity and security:

  • Enabling a seamless, secure and speedy check out regardless of where consumers may be and what screen they may be using – MasterPass securely stores credit card information and shipping information in a secure cloud hosted by trusted entity.
  • Added tools that provide consumers with real-time alerts, account balances, loyalty programs as well as Priceless offers and experiences.

As of launch, merchants including Porter Airlines, WagJag, Jaunt.ca and Grocery Gateway have enabled MasterPass checkout services on their eCommerce websites.  MasterCard plans to expand the number of MasterPass enabled merchants in Canada to 800 merchants by the end of 2013 and 2,800 merchants by the end of 2014. When making purchases through these companies' eCommerce websites, MasterPass digital services will allow Canadian consumers to securely and seamlessly complete their transaction in a few clicks, eliminating the burden of filling out card and shipping information repeatedly.

In Canada, eCommerce is growing at a much faster pace than retail sales.  MasterCard Advisor's SpendingPulse data shows total Canadian year-over-year eCommerce sales grew 26.6% over the past 6 months ending in February 2013, compared to just 2.9% growth in overall Canadian retail sales during the same time period.

"Canadians are early adopters when it comes to digital payments and embracing new technologies; that's why Canada is the first market in North America where we're launching MasterPass," said Jason Davies, Vice President of eCommerce at MasterCard Canada. "With eCommerce growing by double digits, more and more Canadians want a secure, seamless and simple payment experience.  MasterPass delivers this to consumers no matter if they are shopping on their laptops, tablets or mobile phones."

A seamless check-out experience anytime, anywhere

For consumers, MasterPass enables transactions on any enabled device:

  • MasterPass ensures a secure payment experience – multiple layers of security protect a consumer's MasterPass account from fraud.  After a one-time registration, consumers can securely make payments that are as simple as a click, tap or touch, with optional enhanced security feature of a one–time use security code delivered by text message.
  • MasterPass-connected wallets provide consumers with more payment options.  Consumers can securely load up to 25 MasterCard and other branded credit, prepaid or branded debit cards, excluding Interac debit cards, and up to 25 shipping addresses.
  • MasterPass makes the check out process seamless and simple whether shopping on a computer, smartphone or tablet by eliminating the need to enter detailed shipping and card information with every purchase.

Merchants and bank partners provide custom experience with MasterPass

Unlike what's already in the market, MasterPass takes an open and flexible approach to mobile payments with an easy to integrate technology that enables adoption by merchants and banks.

  • Banks, merchants and partners are able to offer their own wallets.
  • MasterPass check out can be implemented with a retailers' existing check out flow so the burden of integrating mobile and online payments for businesses is simplified.

BMO Launches MasterPass-connected BMO Wallet

BMO Bank of Montreal also announced today that consumers can sign up for their MasterPass enabled digital wallet called BMO Wallet in the coming weeks.

"With more consumers looking to digital solutions to make their day to day purchases, MasterPass is a logical evolution and fits into BMO's strategic direction for payments solutions," said David Heatherly, Head, North American Payments, BMO Bank of Montreal. "The launch of the BMO Wallet will allow us to provide a simple, seamless and consistent mobile payment experience across all digital channels, including computer, tablet and mobile-based transactions, while providing the same security features our customers have come to expect."

Merchants and Financial Institutions Embrace MasterPass

Current partners include: WagJag, Jaunt.ca, Porter Airlines, Grocery Gateway, Roots, Global Payments Canada, TD Merchant Services, Moneris Solutions Corporation and BMO Bank of Montreal.

Global Payments Canada is a member of ACT Canada.  MasterCard is a member of ACT Canada and a Cardware 2013 sponsor.  Moneris Solutions Corporation is a member of ACT Canada and their subsidiary MSC is a Cardware 2013 exchange place expert.  TD Merchant Services is a member of ACT Canada and a Cardware 2013 sponsor.  Please visit www.globalpaymentsinc.com; www.mastercard.ca; www.moneris.com; www.msposcorp.com & www.td.com.

Need to keep on top of the latest wallet developments?  Join us at June 19th-20th at Cardware as we look at the Business of Wallets – In it to Win it? The Business Implications for Issuers, Merchants and other stakeholders




Source: Fierce Mobile Content (04/26)

Isis--spearheaded by Verizon Wireless, AT&T Mobility and T-Mobile USA--first teamed with USAT late last year to extend its Near Field Communications-based mobile commerce network to 7,500 vending machines in the Austin, Texas and Salt Lake City markets. Per terms of the expanded agreement, USAT will integrate Isis' SmartTap m-commerce technology into its installed based of more than 100,000 NFC-enabled terminals, allowing consumers to redeem offers and loyalty points with a tap of their Android smartphone.

Isis and USAT will kick off the program with a "Fifth Vend Free" promotion that offers free products from vending operators based upon loyalty rewards earned using the Isis Mobile Wallet to fund purchases at qualifying terminals.

To begin using Isis, consumers must first visit an AT&T Mobility, T-Mobile USA or Verizon Wireless retail store to obtain a secure element SIM card and ensure their Android handset model is Isis-enabled. From there, users must download the Isis application from the Google Play digital storefront. Consumers may either load an eligible American Express, Capital One or Chase credit card into their Isis wallet or leverage the Isis Cash Card inserted into every account.

Isis began consumer trials in Austin  and Salt Lake City in the fall of 2012, enabling customers to pay for purchases, use store loyalty cards and redeem discounts and coupons across thousands of contactless-enabled merchant locations, including Macy's, Jamba Juice, Aéropostale, Foot Locker and Whole Foods. Speaking at February's Smart Card Alliance 2013 Payments Summit, Isis Chief Sales Officer Jim Stapleton said the average Isis consumer in Salt Lake City uses the wallet five or more times a week.

Earlier this year, NFC Times reported Isis plans to expand its contactless payment platform beyond Android to devices running Apple's iOS. Sources said Isis has hired app developer Mutual Mobile to build the next version of its wallet, replacing developer C-SAM, which built the original release. Expected to roll out to consumers during the third quarter, the revamp is believed to feature smoother performance, accelerated response times and a sleeker visual design. Neither Isis nor C-SAM confirmed any changes.


Source: TCMnet.com (04/02)

Telefónica Germany became the first network operator in the country to launch a digital wallet, wherein smartphones with NFC support and a NFC-capable SIM card could be used to make contactless payments in all participating shops around the world.

Giesecke & Devrient announced that it will ensure the security of applications in Telefónica's electronic O2 wallet.

For the wallet service's pilot phase, G&D is providing the NFC SIM cards and the TSM service.

With the O2 Wallet, customers can use their cell phones to make contactless payments in any shop that displays the MasterCard PayPass logo.

This announcement is in continuation of G&D's previous agreement with Telefónica to establish a Europe-wide platform for NFC services, providing the necessary trusted service manager (TSM) technology for secure payments.

In its capacity as TSM, G&D's main role will be to help the company securely distribute and manage contactless services for its customers using the networks of mobile operators. It will also provide additional lifecycle management services such as locking and unlocking the payment applications.

G&D, with its certified hardware, software and TSM services, claims to fulfill the highest security requirements of major payment providers.  It has a strong reputation as a trusted service provider, and is considered an expert in application integration and management across numerous mobile platforms.

Over the course of the year, Telefónica will be expanding its wallet service to include additional applications and functions such as other payment cards, vouchers and loyalty programs.

Giesecke & Devrient is a member of ACT Canada and a Cardware 2013 sponsor & exchange place expert; please visit www.gi-de.com.


Source:  NFC News (04/01)

A report by ABI Research shows that the number of NFC-enabled devices hitting the market will greatly increase by 2014. In "NFC Devices, Strategies, and Form Factors," the firm has analyzed the market to find that at least 285 million NFC-enabled mobile and consumer electronics devices will ship in 2013, and that number will increase to over 500 million in 2014.

Mobile manufacturers are driving the push for NFC, as mobile network operators are downscaling, revising or reconsidering their positions, says John Devlin, practice director. Google Wallet turned out to be a factor in mobile network operator strategies because it introduced a new business model for payments.

Now companies are looking for additional streams of revenue to pay for their investment. "They're looking at where they can provide value, which can be a drawn-out process," says Devlin.

"A phrase much used about NFC is 'chicken and egg,'" says Devlin, adding that initially, NFC business models had been proposed to banks. "The business models proposed weren't that attractive or favorable towards them, so they didn't see it as a win-win. The networks talked about added value and security, but there were other lanes for that as well."

ABI says that many manufacturers have created and implemented NFC strategies that could help generate new service-based revenue streams, as Blackberry and Samsung are doing, or they could horizontally integrate NFC across a broader portfolio, an approach that LG and Sony have taken. "Yes, there's a lot of payments, but there's a lot of other stuff too," says Devlin.

Devlin believes that 2013 will likely be the tipping point in terms of NFC being on devices. "In terms of penetration into handsets, there's no going back." However, it will likely be another 12 months before payment services are ready to scale up due to the fact that there's still work to be done to get retail partners on board to get the services to the mass market. "For payments, there's a lot of preparation to do."


Source: ICMA Industry News (04/25)

NBS Technologies announced MasterCard has evaluated Xpressi Trusted Service Manager (TSM) and added the product to its list of approved products.

Trusted Service Manager is a critical component in mobile payments. The TSM works behind the scenes to make the entire process of downloading payment account information onto a mobile device or payment device seamless. The TSM integrates both banking and mobile phone security systems to ensure that consumer credit card information is completely secure.

"NBS is pleased that the Xpressi TSM has passed MasterCard's evaluation criteria," Mike Fisher, NBS software general manager noted. "As financial institutions, mobile network operators and service providers prepare to launch mobile services, we now have an accredited installation base to reference."

"The mobile payment market is an exciting area of growth and NBS is uniquely positioned to provide a TSM that is a low cost alternative to other options," Fisher added. "We have received orders for a number of TSM solutions that will be implemented this year." NBS has several years of experience working with Near Field Communication (NFC), and the TSM is an extension of that expertise.

MasterCard Canada is a member of ACT Canada and a Cardware 2013 sponsor.  NBS Technologies is a member of ACT Canada and a Cardware 2013 exchange place expert.  Please visit www.mastercard.ca & www.nbstech.com.


Source: PYMNTS.com (04/29)

I walked to my little local market this morning in Boston and saw the latest issue of Barron's on the newsstand. The cover story is all about U.S. Millennials: those 18- to 37-year-olds who, according to this article, are the future of the U.S. economy because they are poised to drive consumer spending like nobody's business. I resisted the typical Boomer impulse to buy the paper and instead went home to read the article on my iPad. The article is a fascinating read, but I think they missed a key point.

Milleninals probably won't drive spending!

First, a little context.

I was always confused about just what age groups represent the Millennials since everyone seems to define it a little differently. This article, and a couple of other sources now, have clearly settled on those born between 1976 and 1995. Many of you reading this even have Millennial kids (or employ them) so probably know them well.

The vital stats associated with this group are these: there are about 86 million of them, a cohort roughly 7 percent larger than their Boomer parents' generation. Some think that it's even possible that this group will get a smidge larger in the next few years because of immigration. It's the most connected generation on the planet. Their early adoption of and subsequent addiction to smartphones has driven the explosive growth of new media channels and the burgeoning industry of tools and tactics that tap into their desire to stay connected 24/7. Pew Research reports that 75 percent of 25- to 34-year-olds own a smartphone and 90 percent of them use the Internet. Relative to payments and commerce, this connectivity and comfort level with accessing the Internet has also fueled their interest in using phones as part of the shopping experience – checking in and downloading coupons and mobile apps that allow them to pay in store. As a result, this group has taken multi-tasking to a completely new level - it's reported that they toggle between devices and channels about 30 times an hour. So, if you ever wonder what your Millennial workforce is doing during the day, now you know.

But, it isn't as if their parents are cave dwelling Luddites either. Roughly, 80 percent of Boomers are on the Internet and nearly 50 percent own a smartphone - many do so for no other reason than to communicate with their Millennial offspring. Did I mention I read the Barron's article on my iPad?

Now to the point of the article.

Millennial spending power is estimated to be 21 percent of all consumer spending, or roughly $1.3 trillion. Many analysts believe that as the economy pulls out of its current sluggish spate, that their spending will restore our annual growth rates of consumer spending to between 3.5 percent and 4 percent - or about double what it is now. But, doing this assumes that said Millennials will have jobs and discretionary money to spend — that is after they've paid for housing, essentials, and their massive student debt - and there's where it gets a little dicey.

At 13.1 percent, they have the highest generational unemployment rates in the U.S. And while 75 percent of Millennials have recovered the jobs they lost during the financial crash, many have taken jobs at a much lower salary rate (anywhere from ~6 percent to 12 percent lower) just to earn income (or because Mom and Dad told them to). The bad news here is that a lower base means a harder time making up the difference longer term. According to the National Bureau of Economic Research, 70 percent of all overall wage growth takes place in the first 10 years of employment. And, speaking of Mom and Dad, some analysts report that nearly 40 percent of Americans between 18 and 34 still live at home; numbers that experts say haven't been seen in over 70 years. (Roughly 19 percent of men 24 – 34 live at home and 10 percent of women that age do as well.) Trust me, Mom and Dad will eventually give these kids the boot and they'll have to spend their income on, oh, housing themselves.

Not to pile on, but the unemployment/lower wage-earning picture is compounded by the fact that this group comes out of school owing about $1 trillion in student debt. Un/underemployment, plus student debt, has also caused many Millennials to postpone or even shun altogether the prospect of having kids. Birth rates for this group are way down, which means a smaller workforce to support them in their retirement years and more pressure on them to save for their own retirement. Actually, that's one of the reasons that Barron's is so bullish on the Millennials. They believe that the necessity for this group to buy stocks and invest for their older years will drive continued growth in the markets. Well, at least that's something positive for all of our 401Ks! These kids also probably can't count on cashing in on Mom and Dad when they do their final checkout since the Millennial parents are going to live for a long time (have you seen the new Boomer bumper sticker .... Don't mind me, I am spending my kid's inheritance) and many had their assets really whacked during the financial crisis.

So, while Barron's may think that Millennials are the silver lining in the consumer spending cloud, it just may well be that those 76 million Boomer parents save the day.

Nielsen reported at the end of the summer last year that Boomers will control 70 percent of all disposable income within the next five years, and today drive about half of all consumer package good spending. In part because they lost their jobs in the financial crisis (and had to do something to support their Millennial kids still living at home, perhaps), those 45- to 65-year-olds dominate new business creation and not only generate income but spending in B2B categories as well. And even though this generation has taken a hit in terms of median family net worth, the Economic Policy Institute tells U.S. that their net worth is three times that of Millennials, and that those 55 and older control about 75 percent of the wealth in the U.S.

That means that this group, unlike the Millennials, has money to spend.

In fact, the Government Consumer Expenditure Survey reports that Boomers outspend other generations by some $400 billion each year on consumer goods and services. And, females drive a bulk of that spending – in fact, this same survey reported that Boomer women over 50 spend $21 billion on clothes annually. Turns out that girl power is both stylish and powerful!

But, as we've seen, just because Boomers have money doesn't mean that they'll spend it. The financial crisis has caused Boomers to hang back and keep their wallets closed shut. Sure, Millennials are moving into the time in their lives when they buy homes and accumulate possessions to furnish those homes, and those who are inclined will even start families. But even so, the number of Millennials spending won't overtake the volume of spend that the Boomers will drive on the things that can move the consumer spending needle. Boomers spending will be focused on the discretionary items that they want and/or like to have, not that they need to have – and often with much higher ticket prices. When Boomers feel comfortable enough in the country's economic prospects, I believe it will be they who propel consumer spending and economic growth and not the Millennials.

The implications for payments and commerce are, I think, interesting. One of the other stats that Nielson reported last summer was the amount of advertising directed to Boomers - less than 5 percent - favoring instead the Millennials who are out for a "fun" and "high tech" experience when contemplating purchases. It's the same thing in payments when thinking about the application of mobile payments and commerce strategies. Many of the initiatives play on what's appealing to younger group and how they use mobile technologies - instead of what may be useful to those who may actually drive a great deal of spend. It's what's driving the intense focus on mobile-enabled points of sale and commerce, leveraging the smart mobile device on and offline. JC Penney may have fallen prey to this a little bit at their peril when it went whole hog into a makeover driven by new technologies in store, and messages and merchandising pegged for Millennials – the target group they wanted to court as customers. As we have now seen, it unfortunately turned off their Boomer customer base that drove sales.

Now, all of this report's broad sweeping generalizations across tens of millions of people and those sorts of things can be misleading. There are, of course, common themes that cross generations. Affluent Millennials and Boomers, for example, are both early adopters of new technologies - all one has to do is stand in line at a Starbucks and observe who whips open their Starbucks app to see that in action. Pew reports that nearly 70 percent of those with incomes over $70k own a smartphone. These groups – regardless of age - have similar tablet-centric use cases and spending patterns, and habits and are clearly spurring the growth in mobile-enabled commerce. That's why it's dangerous to make broad-sweeping decisions about mobile functionality and adoption and use cases based strictly on age cohorts - it overlooks other important inputs that in this case can directly link spending power to device adoption, as well as use cases that can ignite mobile commerce.

Now, I'm not suggesting that we all rethink mobile commerce by doing things like making the fonts larger so that Boomers can read things easier , but it might not be a bad idea to take a closer look at where the bulk of spending happens today, and who drives it. And, then create a mobile commerce experience that adds value to that consumer and her shopping journey. The pendulum seems, thankfully, to be shifting away from mobile commerce as "cool" to mobile commerce as a value-add to the shopping experience. The debate though is who is pushing the shopping cart - the Millennial or her mother - and who will most influence the adoption of a mobile-enabled commerce experience. It's marketing 101 that when introducing new products and services, one always targets those with money to spend. In the case of mobile commerce, though, the bet the industry seems to have placed is on those who might spend someday. Big spending Boomers will be sticking around for a long time – the oldest ones today are mid 60's and have another 20 years to go - further increasing their importance for spend (and perhaps reducing what will flow to their Millennial kids). And they love their iPads and iPhones.

So, could it be time to revisit our thinking just a little bit?


What do Boomers really think about mobile & wallets?  Join us at June 19th-20th at Cardware for a live research session featuring Boomers' take on these new product offerings




Source: VeriFone (04/25)

VeriFone Systems, Inc. announced that WorldPay has completed compatibility certification of the VeriFone VX 520 countertop payment system and contracted to bring the NFC and EMV capabilities of those systems to new and existing merchants.

In a further expansion of the two companies' efforts to cooperatively target merchant needs, WorldPay will also offer a secure audio card-reader version of VeriFone's PAYware Mobile for small merchant mobile payments using smartphones, tablets and other smart devices.

"WorldPay and VeriFone have a long history of supplying merchants with trusted payment solutions," said Patti Newcomer, chief marketing officer for WorldPay US. "We have established a preferred supplier relationship over the years to provide merchants with the best payment solutions available combining WorldPay's lightning fast processing speeds and unbeatable service with VeriFone's industry leading payments technology and security."

The VX 520, a member of the VX Evolution family and one of the most advanced countertop payment device available, supports VeriShield Total Protect for end-to-end encryption and tokenization. Merchants can rest assured that their investment is secure with future-proof technology including EMV and NFC capabilities and PCI PTS certification.

"VeriFone and WorldPay collaborate in crucial areas to deliver the right payment solutions to merchants, including core countertop card acceptance systems, end-to-end encryption of payment data, and the latest in mobile payment options," said Jennifer Miles, president of VeriFone Americas. "The two companies team up to deliver payment solutions to merchants that ensure their customers experience a satisfactory purchasing experience."

WorldPay is also in process of certifying compatibility of the VX 805 and VX 820 PIN pads and wireless VX 680, which like the VX 520 offer contactless and smart card payment acceptance capabilities that are crucial to emerging NFC wallet technology and EMV compliance. The portable VX 680 is available with WiFi and Bluetooth or GPRS communications for merchants on the move.

VeriFone's VX Evolution is designed to take advantage of the newest technologies, while fully leveraging the company's proven VX platform that has powered merchant payments over the past decade.

VeriFone is a member of ACT Canada and a Cardware 2013 exchange place expert; please visit www.verifone.com.


Source: Payments Business (04/05)

Desjardins Group and Crédit Mutuel-CIC Group, a first-tier mutualist financial institution in Europe, have announced the creation of Monetico International (MI). Based in Montreal, the organization will offer innovative payment solutions for the merchant clients of both financial institutions.

Thanks to this collaboration, MI will count among the top ten largest organizations specializing in payment solution services on a global scale, with more than 400,000 merchants and over 3.3 billion payment transactions annually.

MI will pool the expertise of these institutions to lay the foundation for an organization that will coordinate acquirer payment solutions over two continents, which will eventually expand worldwide. Each group will operate its respective acquirer payment solutions from a shared platform, and will jointly develop compliance solutions with international standards.

Together, Desjardins and Crédit Mutuel are fulfilling their vision of becoming a single, global acquirer, always striving to best meet the needs of their merchants, regardless of size. The Monetico brand will support this vision and international business development for both organizations.

"These new developments speak to our willingness to strengthen our business ties. Thanks to a partnership that we established few years ago, our merchants will benefit from the services offered on either side of the Atlantic. By taking a global approach, our expertise will gain in recognition," said Michel Lucas, President of Crédit Mutuel-CIC Group.

"Together with Monetico International, we will be able to better support our respective merchants worldwide. For Desjardins, this new service offer reflects our commitment to putting their needs first and allows us to better serve our numerous cooperative and mutualist partners. We're also able to suggest other innovative products that are user-friendly and adapted to their needs," said Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group.

Desjardins is a member of ACT Canada; please visit www.desjardins.com.


Source: CPI Card Group (04/24)

CPI Card Group announced that the company has expanded its EMV chip milling and embedding capabilities by over 100 percent in the U.S. to support its customers in the market migration from magnetic stripe cards to EMV chip cards.

CPI's expansion, which includes additional state-of-the-art equipment for milling and embedding EMV chip cards, deepens the production capacity and strengthens CPI's established EMV market leader position in the U.S. This strategic investment to grow EMV capabilities will continue through 2013 to meet the increasing demands of its customers and financial card issuers throughout the EMV migration process.

"We continue to support and anticipate the needs of our customers in the achievement of their business goals through the development of our products, services and resources," said Steve Montross, president and CEO of CPI Card Group. "The migration to EMV in the U.S. is unprecedented in terms of size and scale. With our deep understanding and experience in EMV and the U.S. financial card market, we are able to support our customers both in terms of our robust solutions, as well as timely delivery with first-class service."

CPI Card Group is a member of ACT Canada and a Cardware 2013 exchange place expert; please visit www.cpicardgroup.com.


Source: Apriva (04/09)

Apriva announced the availability of its highly anticipated AprivaPay Plus application. Compatible with iOS and Android smartphones and tablets, AprivaPay Plus enables merchants to accept and record payments through mobile devices in storefronts and out in the field.

"AprivaPay Plus is the latest iteration of our AprivaPay application, and has been designed from the ground up with specific merchants in mind," said Stacey Finley Tappin, vice president for sales and marketing at Apriva. "This new and lighter application offers many advanced features and functionalities that are important to small businesses, such as inventory items, photos and enhanced reporting tools that enable our reseller channels to be more competitive in the marketplace. In addition, AprivaPay Plus allows us to continue customized branding efforts for our larger ISO and financial institution reseller channels."

An intuitive, user-friendly point-of-sale solution, AprivaPay Plus allows merchants to process card-based cash payments, as well as record cash-based sales, all on their smartphone or tablet. Merchants can set sales tax rates and incorporate tipping right into the app, providing convenience for customers, and ensuring that all income is properly recorded and distributed. The AprivaPay Plus app also includes an integrated search feature that facilitates specific transaction retrieval, as well as an easy-to-use configuration feature that allows merchants to create specific inventory groups using bar codes and photos to expedite the sales process.

In addition to its robust feature set, AprivaPay Plus offers merchants unparalleled reliability and security. The app supports an encrypted card reader which prevents another app from accessing personal information and card information on the device. In addition, all transactional information is securely stored on the Apriva Payment Gateway, which eliminates the possibility of customer information being recovered in the event of a lost or stolen device.

"Many small businesses are seeing firsthand that consumers are using credit and debit cards for both large and small ticket purchases, and accepting card payments has become a necessity in order to grow their businesses," said Bill Ramsey, Apriva's vice president and general manager for mobile payments. "AprivaPay Plus allows our resellers to tap into this burgeoning market, and provide a user-friendly payments solution that is perfectly aligned with the specific needs of small business."

According to David Kaminsky, senior analyst with Mercator Advisory Group, a market research firm located in suburban Boston, AprivaPay Plus is well positioned to address the fast-growing small- and medium-size business market.

"Apriva has a longstanding reputation for providing secure mobile commerce technologies that address the very tangible needs of merchants," he said. "The AprivaPay Plus solution continues this tradition. It is a smart and user-friendly application that gives retailers a full range of features at a very competitive price point. We expect that merchants will come to appreciate not only the application's flexibility and ease-of-use, but also the robust security that is synonymous with Apriva."

Apriva is a member of ACT Canada and a Cardware 2013 exchange place expert; please visit www.apriva.com.


Source: Dow Jones Newswires (04/26)

UnionPay, China's state-backed payment network, is aiming for a bigger presence in the U.S. through a new prepaid card it plans to unveil Monday.

The product will be sold by banks that have branches in predominantly Asian-American communities across the U.S. and be marketed as a card consumers can use when they travel to China and other foreign countries, a person familiar with the product said.

Customers will also be able to use the card in the U.S. at merchants that accept cards from UnionPay or Discover Financial Services (DFS), which has an existing relationship with the Chinese company, a second person said.

The card, the first UnionPay-branded prepaid card issued in the U.S., will be denominated in U.S. dollars and issued by Bancorp Bank, a subsidiary of Wilmington, Del.-based Bancorp Inc. (TBBK), the first person said.

A spokeswoman for UnionPay declined to comment.

The move would allow UnionPay to build on a relationship it has had since 2005 with Riverwoods, Ill.-based Discover, which operates a payments network that competes against Visa Inc. (V) and MasterCard Inc. (MA) to process transactions.

Through that partnership, UnionPay cardholders who travel to the U.S. can use their credit and debit cards at merchants that accept Discover cards. Discover cardholders, in turn, can use their cards at merchants and automated teller machines that accept UnionPay in China.

Transactions made in the U.S. with UnionPay's new card will run over Discover's network, the second person said.

UnionPay has been battling to grow its business outside of China by increasing the number of merchants that accept its cards and striking deals with foreign financial institutions to issue its cards to consumers.

"It's the old chicken-and-egg thing," said David Robertson, publisher of the Nilson Report, a payments-industry newsletter. "What they decided to do is to build out the acceptance network first. They wanted their own domestic cardholders to have the opportunity to use those cards as they traveled for business and pleasure."

That endeavor is a "far simpler sale" than "it is to get a card-issuing agreement in another country," Mr. Robertson added.

Like Visa and MasterCard, UnionPay operates a payments network and partners with banks to issue its cards.

Consumers made $3.3 trillion in purchases with UnionPay cards world-wide in 2012, up 37% from a year earlier, according to the Nilson Report. That compares with $5.7 trillion in purchases made with Visa-branded cards and $2.7 trillion made with MasterCard-branded cards.

The number of UnionPay-branded cards in circulation also grew 20% last year to 3.5 billion, compared with the 2.5 billion in circulation for Visa and 1.2 billion in circulation for MasterCard.

Bancorp Bank was the largest U.S. prepaid card issuer in 2012, with purchase volume of $20.6 billion, according to preliminary figures from the Nilson Report, a payments-industry newsletter. It issues cards that are marketed under the names of other companies, including NetSpend Holdings Inc. (NTSP) and personal-finance guru Suze Orman.

While UnionPay is attempting to grow in the U.S., Visa, MasterCard and other U.S. card networks have faced challenges tapping into China's rapidly expanding electronic-payments market.

Chinese government rules have required foreign payment networks to partner with UnionPay for cards issued in the country. Under the rules, Visa, MasterCard and others have been unable to process domestic transactions in China.

The World Trade Organization in July ruled that China's tactics put U.S. companies at a disadvantage, and ordered China to drop restrictions that prevent such businesses from processing domestic payments.

Discover is a member of ACT Canada; please visit www.discover.com.


Want to learn more about China UnionPay's take on trends in electronic payments?  Join us June 19th-20th at Cardware as our keynote presentation will be Mr. Li Wei, Assistant General Manager of Technology for China UnionPay Ltd.



Source: Ingenico (04/24)

Ingenico announced that Avant-Garde Marketing Solutions, Inc.  (AGMS), one of the fastest growing merchant service providers (MSP) in the USA, has chosen Ingenico's Telium2 series payment devices to market to its extensive client base in the U.S.

Within the next few weeks, AGMS will begin marketing and deploying Ingenico's latest iCT220 and iCT250 bankcard countertop terminals and iWL250 mobile wireless device. Known for its impeccable customer service and innovative marketing solutions that enable merchants to grow their business and increase their profits, AGMS was extremely selective in choosing to expand its portfolio with Ingenico's products. The final decision was based upon two key factors: security and versatility of the devices. Ingenico's products meet the latest PCI PTS security requirements and come equipped to handle current and future forms of electronic payment transactions, including EMV chip card and NFC mobile payments.

The unprecedented success of AGMS is the culmination of our professionally trained sales staff offering our clients competitive pricing along with innovative marketing strategies. AGMS, while being revered as a leading provider of reliable and secure payment solutions to businesses coast-to-coast, has attained that position as a result of offering exclusive products and services designed to help business owners succeed," said Teresa Madrigal, AGMS President and CEO. "Through our partnership with Ingenico, we are now able to offer a differentiated, fully EMVready portfolio of products combined with the best customer service to our nationwide portfolio of clients."

Manufactured with a small-to-medium merchant's payment acceptance needs in mind, all devices use Ingenico's global dual chip Telium2 architecture for secure and fast transactions. They are compatible with legacy infrastructures and come equipped with diverse payment processing platforms.

"We are pleased to partner with AGMS and have Ingenico's Telium series devices marketed to their vast network of clients. AGMS' solid commitment to deliver the latest secure and performance-driven payment processing technologies provides us with a targeted product distribution in the U.S.," commented Rhonda Boardman, Vice President for US Acquiring Sales for Ingenico North America. "We're confident that AGMS' clients will be pleased with the unparalleled performance of our products today, as well as in the future."

In other Ingenico news, Ingenico announced that Sterling Payment Technologies, one of the nation's most innovative and customer‐focused merchant service providers, has added a comprehensive range of Ingenico's Telium2 series payment devices to offer to its merchants countrywide. Starting in May, Sterling will begin rolling out Ingenico's iCT220 and iCT250 bankcard countertop terminals, and iPP220 and iPP320 PINpads.  Source: Ingenico (04/26)

Ingenico is a member of ACT Canada and a Cardware 2013 exchange place expert; please visit www.ingenico.com.


Source: Carta Worldwide (04/2013)

Service offers banks and Mobile Network Operators a flexible, cost-effective way to trial new mobile payment products.

Carta Worldwide ("Carta") is pleased to announce that Carta has initiated a production service that delivers a comprehensive, cost-effective live Near-Field Communication ("NFC") enabled handset solution.  The product, which has been referred to as "NFC in a box" provides corporate clients with a full package live NFC mobile payments product that includes:

NFC enabled smartphoneNFC profile provisioned to the Secure Element (SIM card)Wallet / User Interface (UI) applicationLive MasterCard virtual card provisioned to device for live transactionsProduct management and support suite

Brian Semkiw, CEO of Carta, stated: "Carta's products and services are flexible and innovative, and this initiative highlights that well. The value is that Carta can deliver very quickly – from one to 1,000 – one-off NFC-enabled phones at a very low cost compared to a full commercial development project, which can cost many millions of dollars before demonstrations even see the light of day." He added, "It's really about giving banks and Mobile Network Operators the tools to trial this exciting new payment technology."

Mr. Semkiw went on to note that the initiative provides clients with the opportunity, prior to implementation of a full commercial program, to gain a better understanding of  "the complete end-to-end NFC mobile payment environment and the real-world user experience, allowing for a better understanding of the many variables involved in the complex NFC ecosystem."

The NFC mobile service is also being used by Carta's clients for demonstrating business development initiatives across multiple markets as the market interest in NFC payments continues to build.

Carta Worldwide is a member of ACT Canada; please visit www.cartaworldwide.com.


Source: Chain Store Age (04/16)

Retailers get it. Mobile is here to stay and to combat the effects of 'showrooming,' they know they have to create a great in-store customer experience. Part of that experience is ensuring customers aren't stymied by a long and annoying checkout process. Vendors like Apple have used i-devices for fast checkouts, but is mobile checkout the right approach for everyone? Retailers like Marshall's and HomeGoods have used single line queuing in their checkout area to intelligently guide customers while simultaneously using the space to boost impulse purchases. This article examines the pros and cons of different types of checkout and choices vendors need to consider.

Mobile checkout – fad or rave?
The idea of having store assistants at the ready to checkout customers using mobile devices is aimed at eliminating long lines. Ideal during the holidays, mobile checkout offers retailers a high-tech approach that appeals to the mobile generation and has the potential for reallocating space used for traditional checkouts. While it may work in smaller, boutique environments or at Apple stores, where an army of staffers are tasked to mill about, this solution poses issues in larger store environments. Impromptu queuing for mobile checkout can cause unmanageable, unruly situations with customers disputing who arrived first, blocking aisles and hindering access to merchandise. With mobile checkout, payment is by credit card so customers paying with cash/check need to go elsewhere; older clientele may feel alienated, out of touch with today's modern ways.

So while embracing technology is important, before eliminating traditional queue management consider the following:

What are you selling? – Do security tags need to be removed? Does it need to be bagged?  How would this be handled via mobile checkout?

Location – Can you designate an area where you can effectively conduct mobile checkout without blocking aisles, causing traffic jams or preventing access to merchandise?

Staffing – How many associates will you need to make a dent in queue busting?  What about mobile checkout training?  Empowering associates with mobile checkout devices doesn't mean they're prepared to handle groups, unruly behavior or effectively upsell or answer customer questions.  Retail staff may inadvertently thwart sales being overly proactive in getting customers checked out whereas a browsing customer may result in additional sales.

Security – Does mobile checkout increase your risk in payment fraud or theft?

Cost – Mobile technology is evolving at a dizzying pace. Samsung recently partnered with Visa to promote mobile payments. All new Samsung smartphones equipped with NFC chips will come with the Visa PayWave app.  Apple is also rumored to be having a NFC chip in the iPhone 5S. Consumers will pay by simply touching their mobile phone onto the payment chip.  Investing in mobile checkout technology/hardware may cost more than the NFC chip will to check people out of stores.

Customer Experience – Customers make conscious decisions about having an in-store experience, so make it count and avoid turning mobile checkout into a near-ecommerce event – there's no point to completely automating the in-store experience when what consumers want is a more enriched customer journey – the reason they choose to shop this way in the first place.  Will mobile checkout ensure fairness and speed or will it create confusion and alienate older clientele?  If your objective is getting a customer in and out quickly, mobile checkout may be a viable option.

Virtual queuing – what exactly is it?
While not specific to checkout, virtual queuing is an important consideration for certain retailers and an up and coming trend in managing in-store customer experiences and expectations. Like an amusement park fast pass, virtual queue management solutions value customer time and allow the correct member of staff to be matched to a customer's needs so they feel they are being served the minute they enter the store. Virtual queuing promotes a positive 'first come, first served' experience and frees up customers to browse or shop while they wait -- secure in knowing they're going to be taken care of.

How virtual queuing works:
1. The customer enters the shop/department and either takes a physical ticket, is greeted by an associate with a tablet or uses a mobile app to enter the queue for their intended service.

2. This ticket informs the customer of their position in line, time of entry and expected wait time. In-store only promotions, coupons and messages can be combined with the ticket.

3. The customer can browse, relax or watch media while they wait.

4. When the associate is free, the customer is called for service.

5. Customers can also pre-book appointments via internet, mobile, in-person reception or self-service kiosks.

Virtual queuing is ideal for retailers with multiple departments/services. Jewelry, shoe or personal shopping departments benefit from having dedicated, knowledgeable staff ready to offer customized services in a timely and orderly fashion. In-store salons and restaurants benefit from virtual queuing by knowing how and when to allocate staff, and increase the speed and efficiency in servicing customers.  Virtual queuing takes the question out of 'when will I be served or attended to?' and is an effective tool in boosting sales, satisfaction and repeat business.

Traditional checkout lines and queue management – still viable options for retailers?
While considered traditional, recent advancements in queue management technology have had a measurable and positive impact on checkout lines. Next generation single line call forward systems are finally making their appearance in mid-to-large retailers.

These queue management systems accelerate customer flow in the fairest and fastest way, by serving them in order of arrival rather than as a result of their choice of queue, eliminating "wrong line" frustration. Quiet and sleek, single line call forward systems indicate which cashier is available via multimedia screens and friendly audio prompts that reduce wait times by 30%.

Today's queue management systems also integrate with exciting in-queue merchandising and digital media solutions for extended shopping while you wait. Multimedia presentations enhance the customer waiting experience, provide targeted advertising opportunities while helping dramatically reduce actual and perceived wait times.

If you have a traditional checkout, you may want to consider revisiting your current setup to determine how you can improve customer flow and create excitement:

Location – Does your current queue management system making optimal use of your precious retail space?  Can you implement in-queue merchandising to upsell/promote new products?In-Store Experience – Can you leverage queue space to educate, entertain or inform your customers?  Consider adding multimedia to promote additional sales. Adding InQtv or a Virtual Assistant/Celebrity Virtual Assistant to your checkout attracts clients, generates excitement and affords new opportunities to better engage with your customers without spending a bundle.
Queue Management System – Are your associates still yelling "NEXT!" If so, you may want to invest in a call forward system that prompts customers through multimedia to the next available cashier offering a pleasant, elegant and equitable way to service your customers.

Customer service is the cornerstone of a great in-store experience, so when considering technology investments, know your audience. Mobile checkout may be ideal for younger affluent shoppers purchasing high price single luxury items needing a quick checkout – but it might not be the right solution for you. And having a traditional checkout doesn't have to mean slow and tedious. Know your options and create a great in-store experience that embraces the most effective queue management technology to support fair and equitable customer flow and engage customers in ways that boost sales and help ensure loyalty.


What do merchants need to know about mobile payments, wallets & their options?  Join us June 19th-20th at Cardware 2013 as we delve into these questions and more in the Merchant Breakout Session


Entering our 25th year, ACT Canada has been the internationally recognized authority in the market. As the eyes, ears and voice for stakeholders focused on secure payment, mobile, NFC, loyalty, secure identity, and leveraging EMV, we promote knowledge transfer, thought leadership and networking. We help members protect their interests, advance their causes, build their business and grow the market. We take a neutral and non-partisan approach to all issues, facilitating collaboration among issuers, brands, acquirers, merchants, regulators, solution providers, governments and other stakeholders. Over 50% of our members have been with us for more than 5 years, enjoying ongoing value from their affiliation with ACT Canada.  Please visit http://www.actcda.com or contact our office at 1 905 426-6360 x122.

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Please forward any comments, suggestions, questions or articles to andrea.mcmullen@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.