BMO unveils mobile payment system

Bank of Montreal (BMO) is rolling out a mobile payment system, writes 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 bank 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 signature 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.”