Visa and Samsung sign global alliance agreement to accelerate mobile NFC payments

Business Wire via ITWeb,

Foster City, California, 25 Feb 2013

Visa and Samsung today announced a global alliance that combines Visa's expertise in payments with Samsung's leadership in mobile device technology - an alliance that has the potential to significantly accelerate the availability of mobile payments globally.

According to the agreement, financial institutions that are planning to launch mobile payment programmes will be able to use the Visa Mobile Provisioning Service [1] to securely download payment account information to NFC-enabled Samsung devices. In addition, Samsung has agreed to load the Visa payWave applet onto its mobile devices featuring NFC technology. Visa payWave is Visa's mobile payment applet that enables consumers to make "wave and pay" contactless payments using mobile devices.

"Samsung devices enabled with Visa payment functionality will no doubt be a powerful product offering - especially in markets where paying with a mobile device is becoming commonplace," said Jim McCarthy, global head of product, Visa. "However, the key to making mobile payments broadly available all over the world is to offer financial institutions a secure way to provision millions of smartphones with payment account information - and that is exactly what Visa and Samsung are ready to deliver."

"Samsung has been a pioneer in NFC devices and is again leading the way in enabling NFC-based mobile payments. The partnership with Visa represents a step towards a global mobile payment platform," said Dr Won-Pyo Hong, President and Head of Media Solution Center, Samsung Electronics. "We believe we have a strong value proposition for financial institutions that will ultimately allow consumer choice in NFC payments."

Near-field communication (NFC) technology is the global communication standard that enables mobile devices to securely communicate with a payment terminal. ABI Research forecasts that a total of 1.95 billion NFC-enabled devices will ship in 2017 [2]. The Visa Samsung global alliance is a first of its kind between a leading NFC handset manufacturer and payment network that is paving the way for the implementation of large-scale mobile payment programmes. The initial areas of engagement that the two companies have agreed to include are:

Global strategic alliance

Visa and Samsung have agreed to work together to enable the next generation of Samsung mobile devices with Visa payment technology, and to partner with financial institutions to accelerate the availability of mobile payment solutions globally.

Samsung to connect to Visa's Mobile Provisioning Service

In order to enable financial institutions to launch large-scale mobile NFC payment programmes, Samsung will offer banks the ability to load payment account information over the air to a secure chip embedded in Samsung devices, using Visa's Mobile Provisioning Service [3], which is linked to Samsung KMS (Key Management System) - a service that creates secure data storage domains for issuers.

Samsung awarded global Visa payWave licence

The Visa payWave mobile applet will be preloaded onto selected next-generation Samsung mobile devices featuring NFC technology and an embedded secure element. Off the shelf, these devices are ready to be personalised with Visa payment account information - a simple step that consumers will be able to initiate using a mobile payment application provided by their financial institutions.

At Mobile World Congress 2013, in Barcelona, from 25 to 28 February, Visa will demonstrate Visa payWave for mobile and its Mobile Provisioning Service that can be used by financial institutions to securely load payment account information to NFC-enabled Samsung mobile devices. For more information, visit Visa at Mobile World Congress, Hall 6, Stand 6E40.

Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. It operates one of the world's most advanced processing networks - VisaNet - that is capable of handling more than 24 000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid, or later with credit products. For more information, visit corporate.visa.com.

Visa Europe

Visa Europe is a payments technology business owned and operated by member banks and other payment service providers from 36 countries across Europe. Visa Europe works at the forefront of technology to create the services and infrastructure that enable millions of European consumers, businesses and governments to make electronic payments. Its members are responsible for issuing cards, signing up retailers, and deciding cardholder and retailer fees. As a dedicated European payment system, Visa Europe is able to respond quickly to the specific market needs of European banks and their customers - cardholders and retailers - and to meet the European Commission's objective to create a true internal market for payments. For more information, please visit www.visaeurope.com.

Samsung Electronics

Samsung Electronics is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, it is transforming the worlds of televisions, smartphones, personal computers, printers, cameras, home appliances, LTE systems, medical devices, semiconductors and LED solutions. It employs 236 000 people across 79 countries with annual sales exceeding KRW 201 trillion. To discover more, please visit www.samsung.com.

1. Visa's Mobile Provisioning Services are not available in all territories

2. Source: ABI Research, 21 November 2012 http://www.abiresearch.com/press/nfc-will-come-out-of-the-trial-phase-in-2013-as-28

3. Visa's Mobile Provisioning Services are not available in all territories

View this news release online at:
http://www.businesswire.com/news/home/20130225005528/en

Press only
Visa Europe
Eleanor Orebi Gann
(+44) 20 7795 5336
europeanmedia@visa.com

(+16) 50 504 4537 globalmedia@visa.com

Visa and Samsung sign global alliance agreement to accelerate mobile NFC payments

Financial institutions will be offered a secure service to download payment account information to Samsung's mobile devices.