Reuters: Financial Services and Real Estate: UPDATE 1-Canadian banks introduce mobile payment guidelines

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UPDATE 1-Canadian banks introduce mobile payment guidelines May 14th 2012, 16:37 Mon May 14, 2012 12:37pm EDT * Banks seek industry standard for NFC payments * Canadian carriers expected to launch mobile wallets soon * Banks neutral on carrier vs Google or device maker wallets By Alastair Sharp TORONTO, May 14 (Reuters) - Canada's banking industry on Monday introduced voluntary guidelines for the fledgling mobile payments industry, as banks seek to set open standards for secure transactions over smartphones used like "tap-and-go" credit or debit cards. The Canadian Bankers Association, a trade body representing banks operating in the country, presented the guidelines as a blueprint for rolling out services enabling consumers to pay for goods with a swipe of their smartphones. Canada is in a good position to take a leading position in mobile payments. Thousands of retailers already have the necessary equipment in place. The banks must still reach agreement with credit card companies and telecoms before launching "mobile wallets." Several sources involved in those talks said last month that the discussion were in their final stages. Rogers Communications Inc, the country's largest wireless company, said at the time it was planning to launch a wallet within six months. "The payment ecosystem takes the coordination of many parties to function effectively," the CBA said. "It is hoped that providing early clarity on industry participation in the ecosystem will help stabilize and build efficiencies into the future deployment of mobile payments in Canada." The trade body said the framework allows for different business models and ensures competition to accelerate adoption while keeping confidential data secure and aligning with existing bank regulations. Handset makers can also play a role independent of network operators, and the guidelines do not state a preference. Google Inc, which supplies the popular Android operating system to several device makers, is also pushing its own mobile wallet. The guidelines cover near-field communication (NFC) chips showing up in a growing number of smartphones. The chips can hold secure data and exchange it wirelessly across very short distances, meaning they can communicate with the sophisticated electronic readers already in shops from coast to coast. The readers, most of them in fast food outlets, gasoline stations, grocery and convenience stores and coffee shops, work with existing credit and debit cards that emit similar signals. NFC chips are considered a safer alternative to traditional magnetic strips, which are more easily hacked. The guidelines can be found here: Link this Share this Digg this Email Reprints

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