BMO Bank to unveil payment solution for mobile phones

BMO Bank of Montreal announced it launched its Mobile
PayPass Tag, a technology that allows BMO personal credit card customers to
make purchases through a sticker affixed to their mobile phone and receive an
instant email verification of each transaction.

By making the PayPass technology available for use on
mobile devices, consumers no longer need to carry cash or coin, or even a purse
or wallet, with them to make small-dollar-value purchases. They can tap their
mobile phone over the PayPass reader at the point of sale and the transaction
is instantly processed to their BMO credit card account. For purchases under
$50, no Personal Identification Number (PIN), swipe or signature is required.

Through MasterCard’s inControl platform, BMO’s Mobile
PayPass Tag users can easily monitor their spending by opting to receive email
notifications that report the merchant and exact location of each PayPass
purchase they make with their tag.

The tag and email notification services are free to BMO
MasterCard cardholders. PayPass technology is already embedded in more than
seven million of BMO’s MasterCard credit cards. The PayPass tag for mobile
devices simply makes using PayPass that much easier — you don’t even have to
pull your card out of your wallet.

“We know that Canadians’ use of cash for
smaller-value purchases is based on their desire to get in and out quickly when
buying day-to-day items like gas, a quick lunch or a coffee,” said David
Heatherly, VP, Payment Products, BMO Bank of Montreal.

Along with speed and convenience, PayPass tag users have
the same zero-liability purchase protection and anti-fraud capabilities
available on all BMO MasterCard products. And they can collect the same rewards
that they earn on their BMO MasterCard credit card, which means PayPass users
earn rewards on their total spend and collect more rewards faster.

“Canadians tell us they prefer simplified,
electronic payment methods. Given the prevalence of smartphones, and a quickly
expanding network of PayPass merchants, we think mobile PayPass is poised to
take off as a popular payment method for Canadians,” said Scott Lapstra,
vice president, Emerging Payments, MasterCard Canada.

PayPass transactions account for nearly 10 per cent of
all MasterCard credit card transactions in Canada, with the average PayPass
transaction at over $40 and close to 50 per cent of those transactions being
for purchases of $25 or less.

By Team
[email protected]