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Tracking the consumer evolution of financial services

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Bell, Rogers, Telus to launch mobile payment service | Canada

Canadian Telco’s beat the banks out with the first serious country wide example of mobile payments in Canada, and frankly one of few in the world.  This is just one more example of disaggregated financial services, that cip away parts of what was previously banks’ territory.

The use of NFC technology is also worth noting here.  NFC (Near Field Communications) permits wireless data transfer over distances up to 10 cm.  This is designed to eliminate accidentally purchasing Dave Birch’s coffee for him.

In all seriousness while this has been a long time coming, my sense has always been that the telco’s would be front and centre in the payments business.  The 3.5% fee they are charging is essentially money for next to nothing to them in terms of revenue vs outlay.  They already have the riht deveice in the hands of consumers so they are off to the races.

Bell, Rogers, Telus to launch mobile payment service

The venture is the first tentative step toward a true mobile wallet, where phones equipped with the NFC chips themselves could be used in everyday transactions. Such phones are already in use in countries like South Korea and Japan, but have yet to come to North America except in trials.

Robin Dua, president of Enstream, said he hopes the service’s use of the NFC-enabled cards will pave the way for future adoption of NFC chip-enabled phones.

The software will work on most smartphones, including many of Research in Motion’s BlackBerrys. An iPhone application is also in the works he said.

Written by Colin Henderson

June 14, 2009 at 20:20

Posted in Payments

Tagged with , , , ,

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