While there are different types of mobile payments, EnStream enables the highest level of security for credit and debit transactions using a smartphone. The phone must have an NFC antenna and a secure element onto which a customer’s credentials can be securely stored, either on a SIM card or embedded in the phone.
For the customer, it is an even more convenient way of paying with their existing credit or debit accounts. In the future, all types of credentials will be securely downloaded to smartphones over the air, and used for NFC-based smartphone transactions: already available are loyalty cards, gift cards and coupons, and soon government-issued credentials such as drivers’ licences and health cards, transit passes – even hotel room keys will reside on the phone.
The majority of Canadians now carry smartphones, and the secure-element-based NFC mobile payment technology offers:
- Greater everyday purchase convenience.
- Same level of ‘card’ security as chip and PIN.
- Gift card and loyalty card convenience.
- Instant account credential delivery and replacement.
- Customer-initiated suspension, restoration.
- More sales due to greater convenience for customers.
- Cost savings due to quicker transactions and reduced cash handling.
- More sales because of increased use of gift cards – both coming into a retail store, but also increased sales of retailers’ own gift cards.
- No increase in the interchange fees. Whether a customer uses a particular credit card using chip and PIN or uses that same card’s credentials on the customer’s phone, the purchase appears the same to the terminal – it is form-agnostic.
- Initially all Canadian retailers have already upgraded to chip and PIN terminals, and, many are already NFC-enabled. Most of the terminals that already permit contactless payment (tap or wave) are ready to go for tap and wave by phone. Others may merely need a software upgrade.
- Enhanced customer data to help increase effectiveness of marketing, displays, etc.
- Greater ability to introduce customers to promotions, over the phone and in real time.
For Banks & Other Issuers
- Increased revenue from more credit and debit transactions.
- Reductions in costs associated with the production and distribution cycle of plastic cards. Over the air downloading and storing of credentials eliminates the manufacture and distribution cycle of plastic cards. There is no need to stamp the credential onto a chip that is embedded on a plastic card; or physically deliver a card that can end up in the wrong hands.
- Reduction in fraud for payments and identity cards such as licences, health cards.