It is one of the first mobile payment systems in Europe to link to online debit accounts directly.
Using the retailer’s existing online PIN payment infrastructure, the system allows shoppers participating in the trial to complete transactions by holding up their phone to a contactless reader and entering their PIN into a terminal in the normal way. The information normally contained in a debit card chip is transferred to a near field communication (NFC) chip in the mobile phone.
100 customers are taking part in the pilot, which is at a supermarket in a small town outside Rotterdam. The pilot is a joint initiative between LogicaCMG, C1000’s owner Schuitema and several banking and technology firms.
LogicaCMG Netherlands innovation director Gerben Mak explained that the retailer had been chosen for the trial because it is open-minded. That particular store was chosen because everyone involved was keen to see how the system would be received by sceptical rural consumers. The initial response has been described as positive.
Similar NFC technology is being rolled out in the UK for several contactless card payment schemes. However, Mak said that the two contactless payment methods are complementary and, while this particular system being piloted is not future-proof, the methodology of moving chips from payment cards to mobile phones will stand the test of time.
“The timing is important. NFC has been around for some time, but the concept works now because a growing number of consumers are adopting a mobile lifestyle,” he said.
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