Rogers and CIBC Launches NFC Credit Card Smartphone Payment Solution [Update]

Yesterday we told you about the media event announcement between Rogers and CIBC, and today we find out what it’s all about. Both companies have announced this morning the launch of a joint mobile payment solution. Customers will soon be able to pay with their CIBC credit card wirelessly via a Rogers Near Field Communications (NFC) enabled smartphone, later this year.

The SIM card within the NFC-enabled Rogers smartphone will be utilized to securely store information, the first time a bank and wireless carrier have joined together to offer a commercially available mobile payments solution. The guidelines we learned about yesterday set out by the Canadian Bankers Association will be followed along with standard GSM Association standards.

“As the leader in delivering mobile financial services innovations in Canada, we are pleased to introduce yet another innovation in the market that will shape the payments experience of the future,” commented David Williamson, Senior Executive Vice President, Retail and Business Banking, CIBC. “By teaming with Rogers, CIBC clients will soon enjoy the convenience of paying at the checkout with their mobile device while enjoying the existing benefits of their CIBC credit card, including loyalty rewards.”

“Canadians are embracing new technologies at an accelerated pace and we know they’re interested in using their smartphone for mobile payments,” said Rob Bruce, President of Communications, Rogers Communications. “We’ve been laying the foundation for mobile commerce and the ecosystem is ready to give Canadians the convenience, security, and peace of mind they deserve,” said Bruce. “Today’s announcement with CIBC represents an important first step toward a whole new world of mobile transactions which is a key growth area for the company.”

Some of the key features of the new mobile payments solution include:

  • Full access to a client’s existing CIBC credit cards on their smartphone at no extra cost – whether Visa or MasterCard – this gives clients the opportunity to earn loyalty points on purchases as they do today.
  • Multiple layers of security – Paying with your NFC-enabled smartphone will be as secure as using your credit card today. Clients will receive the same fraud protection they do with their contactless credit card, and secure encryption technology will add to the layers of security already in place on credit card purchases. Clients will also have the option to set additional password protection.
  • No “stickers” on your phone – this new payment capability will leverage the secure SIM card inside a mobile device for payments, meaning clients can manage their credit card credentials on a secure platform, and won’t need to worry about stickers attached to their phone.

This new CIBC mobile payments system will launch later this year on select BlackBerry models, with other phones to launch later on. There is no word whether a future iPhone will be included, unless NFC capabilities come to the next generation device, rumoured again for a Fall launch.

Our correspondent @mikeychu attended this morning’s media event, we will include more information to follow (thanks @robinprice for the heads up on the PR).

Update 1: Michael has provided a few notes regarding the media announcement:

  • retailers/merchants will not be charged any additional fees for this service
  • transactions limited to $50
  • will work in conjunction with other contact less payment around the world

Left to right: David Robinson and Rob Bruce from Rogers; Dave Williamson and Todd Roberts from CIBC

This story is developing…refresh for updates.

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