• Pre-paid card products enable limited payment from a pre-paid stored value card, using either a contactless card for point of sale transactions or a smartphone app for on-line transactions.
  • Starbucks has a limited “closed loop” payment option that uses a low-security stored value account that can be used, only at Starbucks, either with a mag stripe Starbucks card or a smartphone app that presents a barcode scanned at point of sale. It is low security, but accepted because the account is prepaid and amounts are small.
  • The “Google Wallet” enables only limited payment through a specific Google account which delivers transaction information to Google in exchange for targeted discount offers. Google has tried a few approaches to storing payment credentials in the phone, with limited success.  The service has not been introduced in Canada.
  • ‘Square’ and ‘Payfirma’ use technology that, with a small unit that attaches to a mobile phone, allows that phone to receive payment as a Point of Sale terminal, not to use the phone to make payments. In the future, however, NFC smartphones equipped with the right SIM cards will also be able to be used as a new class of EMV contactless card reader.  Peripherals that read mag stripe cards, like Square, are not capable of reading secure EMV card data.
  • Peer-to-peer payments such as M-Pesa in Kenya permit bank-less phone-based transactions as a form of cash replacement, using text messaging or wireless data to send funds from one stored value account to another. This system does not use the secure technology needed for EMV credit/debit card payments.
  • Using the secure technology of the kind provided by EnStream means banks and other issuers can securely download their customers’ secure credentials onto their smartphones to allow contactless payment. Today, Visa, MasterCard, Interac and American Express all have contactless payment applications: payWave, PayPass, Flash and ExpressPay, respectively. EnStream is deploying on an open, all-comer “utility-like” basis, creating a cost-effective and easy-to-use standard for the market.