2011 Will Be an Exciting Year for Contactless Payments, Including Transit Payment Projects and Mobile Payments

Student Run Coffee Shop Tests Mobile Payments

October 25, 2010

AVISIAN Publications - The University of Denver’s Daniels College of Business is always looking for technical innovations they can introduce on campus to better educate students. They need to be familiar with the latest technology for us to be seen as legitimate by the industry, says David Corsun, the director of Daniels’ School of Hotel, Restaurant and Tourism Management.

That’s why the school is partnering with Denver-based mobile payments provider Mocapay Inc. to enable customers at Beans, the student-run coffee shop, to make payments with their mobile phones.

Beans customers have the option to download a Mocapay app to their phone. To make a purchase, they launch the app, enter the transaction amount, and then receive a unique six-digit code on their phone. They provide the code to the cashier and the amount is deducted from their prepaid account.

Merchants can opt to have customers punch the six-digit code into a pin pad or have a bar code sent to the customer’s phone for scanning at the POS.

“We are agnostic as to what your point-of-sale process is,” says Kevin Grieve, Mocopay’s chief executive officer, but whatever process is used, “no customer-sensitive information is stored on the phone or passed to the merchant.”

“We’re the first to market with this solution,” he adds. Mocapay conducted trials from 2007 to 2009 and now supports merchant-branded gift and loyalty programs at 125 locations in several states.

Mocapay also uses its mobile platform as a marketing tool. Users receive alerts when new merchants join the service, customer satisfaction surveys and occasional reminders about their remaining balance.

Corsun says academic institutions need something like Mocapay for several reasons. The first is simple convenience.

“We know that most of our students have smart phones and many are reliant on their parents for their spending cash,” he says. With Mocapay, parents can replenish the accounts online or students can add funds from their mobile phones.

Mocopay’s software-as-a-service delivery model meant, “there was no hardware cost to us,” says Corsun, stressing that it’s difficult for colleges to get funds for any new capital investment in the current economic environment.

But most important for Daniels College, all of their students take a technology course that will now include studying the Mocapay project alongside a multitude of software systems used in the hospitality industry.

“We see [mobile payments] as something that is going to be pervasive and our students need to know how to operate it. They’re not just learning that Mocapay exists, they’re going to learn the way it adds value.”

Grieve says the Daniels deal will pay future dividends, noting that, “as a young company, we need to build awareness and let people know what we can do.”

The best way to do that is to “target industry leaders and innovative merchants, and students are the next crop of industry leaders.”

SCA Payments Council Expands Charter, Elects New Co-chairs from MasterCard, Visa

November 9, 2010

Contactless News - The Smart Card Alliance Payments Council has expanded its charter to include all chip-enabled payments and payment applications in the United States, including EMV, contactless payments, NFC-enabled payments and applications, mobile payments, and chip-enabled e-commerce.

The Council has also announced its new officers and steering committee, including new co-chairs Simon Hurry from Visa and Oliver Manahan from MasterCard.

“With most of the world moving to EMV chip payments and experimenting with other chip-based applications, the big question within the U.S. payments industry is, ‘How would chip affect the United States?’” said Randy Vanderhoof, executive director of the Smart Card Alliance. “The Payments Council has worked tirelessly this year to examine this very question, providing extensive educational material on chip-enabled payments, including EMV, contactless and mobile payments, and chip-based solutions that enable innovation and help address counterfeit fraud.”

With its expanded focus on all chip-enabled payments, the Payments Council published a number of resources for the payments industry this year, including new Web resources for information and news on EMV (“EMV Resources”) and Near Field Communications (“NFC Resources”). The Council also held a webinar on “Top 10 Reasons U.S. Should Consider EMV” and published the white papers “Chip-Enabled Mobile Marketing,” “EMV Chip Cards Expected for Upscale U.S. Cardholders,” “Fraud in the U.S. Payments Industry,” and “End-to-End Encryption and Chip Cards in the U.S. Payments Industry,” all available on the Payments Council Web site.

“The Smart Card Alliance Payments Council is an organization that brings together industry players that may have divergent disciplines but are still focused on commerce,” said new co-chair, Oliver Manahan, VP of MasterCard Worldwide. “We are in store for an exciting year in the payments industry, with many contactless transit payment projects in development, and buzz continuing to grow for mobile payment. It will be valuable to discuss and debate the economic impacts related to chip-based payments and applications in other areas, and create resources based on those findings.”

The Payments Council is made up of over 150 individuals from over 50 organizations, including card issuers, payment brands, merchants, financial payment processors, terminal vendors, card manufacturers, chip vendors, systems integrators/consultants, and personalization bureaus.

G&D Contactless Payment Card Shipments Reach 50 Million Units in U.S.

November 10, 2010

Contactless News - Munich-based Giesecke & Devrient (G&D) has announced that shipments of its Convego Air contactless payment cards to the U.S. have now surpassed the 50 million unit mark.

Since the introduction of its contactless payment cards in 2006, G&D has become the number one supplier of Visa and MasterCard branded contactless payment cards in the U.S., and the first card vendor to reach the 50 million milestone, according to the company.

G&D has also announced that it is expanding its contactless platform to include new form factors, including mobile payment stickers and contactless payment cards with enhanced metal effect features that overcome the technical challenges of the metalized surface on contactless technology, claims G&D.

Contactless Check-in System Goes Live at Sydney Airport

November 10, 2010

Contactless News - Australian airline Qantas has successfully introduced its a new contactless check-in system at the Sydney Airport.

Already up and running in Perth, the system allows Qantas Club members and frequent flyers to check in using only their contactless ‘Q cards.’

After tapping the Q card at a reader at the terminal entrance, the traveler receives an automated text message on their mobile phone confirming a successful check-in. The card is then tapped once again at the departure gate.

According to itwire.com, Qantas is issuing the cards to travelers in order of their frequent flier status.

So far, Qantas has reported a smooth roll out of the system.

Boston Pilots New All-in-one Student Card

November 8, 2010

Contactless News - City officials in Boston, Mass. have launched a pilot program for students to use a single card to access the array of services the city has to offer, reports the Boston Globe.

Known as BostONEcard, the card program will enable students to ride the MBTA, check out books from city libraries, play sports, and attend after-school programs at community centers and access meal programs at their schools. The card will also be used to take attendance and may eventually support debit-based transactions.

The program is starting at the Josiah Quincy Upper School, where all students in grades 6 through 12 are being provided a card that has multiple bar codes and contactless smart card technology to use on the MBTA, and their photo.

The city will evaluate the program at the end of the academic year and consider expanding it next year to all Boston Public School students in middle school and high school.

Aussie 7-Elevens Go Contactless

Monday, November 8, 2010

Contactless News - Convenience store chain 7-Eleven is adopting MasterCard’s PayPass contactless payment technology in over 400 of its stores across Australia, according to franchise.net.

The new payment option will allow 7-Eleven customers to tap-and-pay for items up to $100 without having to sign or enter a PIN.

According to franchise.net, 7-Eleven is the first convenience store chain in Australia to offer MasterCard’s PayPass technology.

7-Eleven’s CEO, Warren Wilmot, comments,

“We are constantly on the lookout for products and services that make our customer’s lives more convenient. With MasterCard PayPass, our customers not only have an added choice on how they want to pay but also, a convenient and secure payment service.”

Ingenico to Deliver New Payments Infrastructure to NZ, AU McDonald's Restaurants

November 5, 2010

Contactless News - Payment solutions provider Ingenico has signed an agreement with McDonald’s for the provision of a PCI DSS compliant payments infrastructure across McDonald’s restaurants in Australia and New Zealand.

The end-to-end, PCI DSS compliant solution encompasses the i3070 contactless EFT PIN pad, the AXIS global transaction processing management system, reporting capability via the Ingenico e-Portal, and the terminal estate management.

According to Ingenico, the fully outsourced solution is being deployed throughout McDonald’s Australia and will soon be delivered to New Zealand restaurants.

MBNA Announces Massive Roll Out of Contactless Payment Cards in UK

November 1, 2010

Contactless News - MBNA, a European subsidiary of Bank of America, has begun a two-year program to roll out contactless credit cards for its millions of UK customers.

According to the MBNA, 5 million of the company’s cards will have contactless technology by the end of 2011, adding to the existing 10 million contactless credit and debit cards already in the UK market.

According to MBNA, customers do not need to do anything to receive the new cards, as they will be automatically updated and distributed upon reissue.

Additionally, MBNA says the cards will feature several new layers of security. For example contactless cards cannot be used until a PIN is entered on first use, payments are limited to up to £15 per transaction, and customers will occasionally be asked to enter their PIN number to ensure the transactions are valid.

According to MBNA, adoption of contactless payment among UK businesses is gathering pace, with Subway, Pret a Manger, Caffe Nero and others already installing terminals. In addition, a host of big-name retailers are either trialing the technology or rolling it out, including the Co-op, Boots, Spar, National Trust gift shops and Little Chef restaurants.

Indian Railways to Deliver Contactless Transport Card to Mumbai, Delhi

October 25, 2010

Contactless News - Indian Railways (IR), the state-owned railway company of India, is looking to introduce an Oyster-style contactless transport ticketing card in Mumbai and Delhi, according to NDTV.

IR has already started converting its railway ticketing smart card into a city transport card that can used for several modes of transportation. According to NDTV, IR has already begun testing the technology on the Delhi Metro.

IR’s railway card, called the Automatic Ticket Vending Machine (ATVM) card, has already seen acceptance among Mumbai’s seven million commuters, says NDTV.

“In Delhi, the ATVM system is being introduced with the capability of multiple applications being supported, and CRIS is collaborating with the Delhi Metro Railway Corporation on this,” Madhav Pathak, managing director of New Delhi’s Center for Railway Information Systems, told NDTV.