PINLESS RECHARGE SERVICE - ePay

EVOLVINGPAYMENTOPTIONSThe latest technologyin mobile paymentThe success of online shopping over the last fewyears demonstrates the importance consumersplace on convenience and speed when makingpurchases. As Smartphones become as vital tohave on hand as a wallet and keys in our dailylife, emerging payment service providers andfinancial institutions are taking full advantageof the possibilities this new technology providesfor faster in store transactions. In this article,we look into the latest products and servicesavailable in Australia and around the globe.A BackgroundAustralia is the fifth largest user of mobile apps perperson in the world (1) . One of these apps, the mobilewallet, is like a physical wallet available on a user'smobile phone. These store credit and debit cardinformation, bank details and other personal financialdata. Near Field Communication (NFC) allows consumersto use their Smartphones as payment tools, using themat the register as they would a credit or debit card tocomplete a transaction.The biggest scheme card providers, Visa and Mastercard,are busily working with financial institutions to roll outNFC readers at retail point of sale to accept contactlesspayments. Financial institutions are getting into fullswing by rolling out thousands of Mastercard® Paypassand Visa payWave contactless terminals.NFC uses wireless connectivity or machine scannersto transfer data across short distances. This methodof payment lessens the need to carry several cards;streamlining processes at the register and encouragingregular transactions (2) . The combining of these twomediums has made paying for goods and services with aSmartphone possible. An increasing number of companiesare creating mobile wallets that have the ability to makeand receive payments and mobile companies are creatingthe software and accessories to make NFC payments areality.At HomeThe iCarte, an iPhone case, provides the chip required tocomplete an NFC transaction as this is not built into thecurrent range of iPhones (3) . When coupled with one ofthe mobile wallet applications now available in Australia,such as the Commonwealth Bank's Kaching, whichlaunched in October 2011, it offers a fast payment optionfor Aussie consumers.An interesting feature offered by Kaching is person toperson payment, allowing users to transfer money tothe accounts of friends or family via their contact name,mobile number, email address or Facebook accounton their iPhone. The app can also locate the nearestCommBank ATM using the Smartphone's GPS capability.Kaching uses Mastercard® Paypass Contactless Tapand Go. All transactions under $100 are tap and go but ifthe transaction is over $100, a PIN is required to verify avalid transaction (3) .10epay world magazine | Australia | Winter 2012