Banks and carriers set to announce new rules to “embed credit card and debit card information inside smartphones”

A couple weeks back it was revealed that EnStream, the Rogers/Bell/TELUS joint venture, was in final talks with various financial institutions to bring the “mobile wallet” to Canadians within 6 months. If the latest report from the Globe is true then we’ll see an official announcement sometime this week that’ll bring this idea one step closer to reality.

Apparently at a Canadian Bankers Association meeting on Friday the big banks – presumably RBC, CIBC, TD Canada Trust, Scotiabank, BMO – will partner with unknown telcos to “embed credit card and debit card information inside smartphones.” It’s rumoured that this new set of standards will create bold new rules of “how banks will operate in this new world.” The idea is to store your credit/debit cards onto your device and pay for items without cash, coins. The bigger idea at play is to have all your personal information stored on your smartphone, making it eventually replace your physical wallet and become a cashless society.

There was no indication on the fee structure for either the customer or merchant, but it’s was reported by Reuters that the Big 3 (Rogers, Bell and TELUS) have interest in charging “a flat annual fee to allow a bank to load a consumer’s financial credentials on the SIM card inside a NFC-enabled smartphone.” This “new set of rules” will potentially be a cash cow for the wireless companies, potentially in the “millions of dollars” for handling retail payments.

A recent report stated the biggest issue for consumers surrounding mobile banking/mobile payment is security with 64% claiming it as their number one concern. The major worry for merchants is paying out higher fees.

Source: CTV