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BMO unveils mobile payment system

By Chumisa Vimbani
Johannesburg, 19 Sept 2011

BMO unveils mobile payment system

Montreal Gazette.

With the Mobile PayPass Tag, BMO MasterCard credit card customers will be able to pay for services using a sticker on their mobile phones.

The sticker can be swiped over any PayPass reader, and payments will be verified through e-mail after each transaction.

BMO is the first major Canadian to offer what amounts to an interim step on the road to fully-fledged mobile payment technology, a move that could eventually spell the end of plastic cards, or even the need for a wallet, reports The Spec.com.

The same terms and conditions apply to the phone tag as to the regular PayPass card. For purchases under $50, no PIN, swipe or is required.

Kaan Yigit, principal analyst at telecommunications consultant Solutions Research Group, said the 'quasi-mobile' service offered by BMO is a step towards meshing payment technology directly with mobile devices, states Financial Post.

He adds: “Hardware, software and financial services firms must also work out revenue-splitting agreements; the market is really just taking shape - there will be plenty of opportunities to stake out positions.”

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