Canada Sees More NFC Commercial Launches with SIMs, but Market Remains Unsettled

Jul 15 2014

NFC Times Exclusive: With its high rate of smartphone ownership, strong contactless-payment infrastructure and well-developed NFC ecosystem, Canada is increasingly seen as a market to watch for NFC commercial deployments.

UPDATED: Four major banks have already launched NFC commercially. In addition, a regional bank and telco have also launched NFC payments, the latter with a prepaid co-branded card. (See table in full story.)  END UPDATE.

Like another budding NFC-payments hotspot, Australia, Canada has a highly concentrated banking sector, and banks in both countries want to take advantage of the strong penetration of contactless point-of-sale terminals at merchant locations to roll out NFC. 

Canadian telcos and their backers like to point out that all of the launches so far have used NFC SIM cards. That includes Royal Bank of Canada’s RBC Secure Cloud service, which puts tokens and a small applet on SIMs. 

Backers of SIM-based NFC characterize the commercial launches to date as an example of close cooperation between banks and telcos in introducing mobile payments. 

But as in Australia, there is much interest in host-card emulation among Canadian banks, with four of the big five banks in Canada in various stages of working on full HCE, a banking source told NFC Times

Words: 

2,500 

Graphics:

  • (Updated) Table: NFC commercial launches of five major Canadian issuers and one planned–includes launch dates, as well as the payment brands, mobile operators and SP-TSMs the issuers are working with
  • (Updated) Fact box: Snapshot of Canadian market in terms of contactless infrastructure, active players, HCE launches to date, etc. 

Among Topics Covered:

  • Dynamics of Canadian NFC market and possible implications for other markets
  • Prospects for bank-telco cooperation in Canada’s highly concentrated banking and telcos sectors
  • Launches by Canadian banks on NFC SIMs
  • Interest by banks in host-card emulation
  • EnStream’s role in connecting banks and telcos
  • Details of Canada’s contactless infrastructure
  • Economics of the SIM-rental model in Canada
  • Visa’s backing for HCE

Sources quoted:

  • Nauby Jacob, vice president for products, services and content, Bell Mobility
  • Derek Colfer, head of mobile innovation, Visa Canada
  • Pawel Chrobok, director of business development, EnStream
  • Christie Christelis, CEO, Technology Strategies International
  • CIBC spokesman 

Among companies and organizations mentioned:

Royal Bank of Canada
CIBC,
Rogers Communications
Bell Mobility
Telus Mobility
TD Bank Group
Desjardins
Scotiabank
President’s Choice Financial
Isis 

This is premium content from NFC Times. 

Read Full Article 

© NFC Times and Forthwrite Media. NFC Times content is for individual use and cannot be copied or distributed without the express permission of the publisher.

HEADLINE NEWS

Sydney to Test Multimodal Payments Involving Private Mobility Providers Using Digital Closed-Loop Card

NFC Times Exclusive Insight – A trial to be held later this year in Australia’s largest city, Sydney, if it proves successful, could offer one example for how agencies can encourage customers to take multimodal transport combining public and private operators. The economics behind the New South Wales government’s trial offer are unclear, however.

Rome Transit Operator: Covid Accelerates Demand for Contactless Payments but Customer Habits Hard to Change

NFC TIMES Exclusive Insight – The CIO of Italy’s largest public transit operator, ATAC SpA, said the Covid-19 pandemic has accelerated demand for open-loop contactless and mobile payments, but added that old habits are hard to break for customers and use of cash and paper tickets are still popular.

Dubai Transit Authority Plans to Launch Its Closed-Loop Card in More NFC Wallets

NFC TIMES Exclusive Insight – Dubai’s Roads and Transport Authority, or RTA, which in December first launched mobile fare payments with a digital version of its closed-loop card in Huawei smartphones, says it plans to expand the service to other OEMs, including Apple and Samsung.

Case Study: Transit Agency in Portugal Combined NFC with BLE for Mobile Ticketing; Faced Challenges

NFC TIMES Exclusive Insight – The agency that runs ticketing for 19 public bus, tram and train operators serving Porto, Portugal’s second largest city, says it has had success–and faced several challenges–with the rollout of its Anda mobile-ticketing app.

OMNY Hits New Usage Milestone as Open-Loop Payments Rollout Continues

NFC TIMES Exclusive Insight – New York’s Metropolitan Transportation Authority, or MTA, says it continues to see steady growth of its open-loop fare payments service, OMNY, announcing 50 million taps by customers using NFC wallets and bank cards to ride the massive New York City Subway and the city’s buses.

In-Depth: Contactless Open-Loop Pilot in Spain First Project from Vendor Partnership

Mar 11 2021

NFC TIMES Exclusive Insight – Bilbobus, which operates bus service for the city of Bilbao, in northern Spain’s Basque region, says it launched its recent trial of con

Moscow Metro Plans Rollout of ‘Face Pay’ Technology for Fare Collection

NFC TIMES Exclusive Insight – The Moscow Metro plans to roll out facial-recognition technology at every station by the end of 2021 to enable customers to pay fares, officials say. The project, while delayed, would be the largest of its kind globally.

Stockholm Transit Agency Launches Open-Loop Fare Payments for Multimodal Rides

NFC TIMES Exclusive Insight – Stockholm Public Transport, or SL, the city-owned company that oversees major public transport in the city, is the latest agency in Europe to launch open-loop fare collection, offering multimodal rides with a tap of a contactless EMV bank card or NFC device.

Case Study: Amsterdam Transit Operator Seeks to Go Nearly 100% Digital for Ticketing to Cut Costs and Enhance Service

NFC TIMES Exclusive Insight – GVB, Amsterdam’s largest public transit operator, says it seeks to replace an aging closed-loop fare card system and go to open-loop and other digital tokens with the planned rollout of its new account-based ticketing system.

Google Announces Plans to Enable Public Transit Ticketing in Maps App along with Rollout of Parking Fare Payments

NFC TIMES Exclusive Insight – Google has announced plans to launch public transit ticketing for more than 80 cities globally in coming weeks from its trip-planning Maps app and also to enable users to buy virtual closed-loop fare cards–starting with the Clipper card in the San Francisco Bay Area–directly from the app. That’s in addition to enabling payments for parking in more than 400 U.S. cities.

UPDATED: U.S. Federal Government Awards Grants to Help Transit Agencies Roll Out Contactless Payments and Mobile Ticketing

Feb 18 2021

NFC TIMES Exclusive Insight – U.S. public transit agencies have been keen to remove cash and paper tickets from their buses and trains and to keep more distance between customers and agency staffers because of the Covid-19 pandemic. Now they are getting a new boost from the U.S. federal government in the form of grant funds to enable them to enhance contactless and mobile payments systems, among other measures.

German Transit Agency Plans to Complete Open-Loop Rollout on Buses and Trains This Quarter, Expand to Other Mobility Later

NFC TIMES Exclusive Insight – German transit agency SWB Bus and Bahn plans to fully roll out its contactless EMV fare payments service BONNsmart to its bus and train lines by the end of the first quarter, after launching a pilot last fall, confirmed a spokesman, who added that plans call for eventually expanding the contactless service to payments for parking and such micromobility modes as e-scooters.