Canadian BMO Bank announces PayPass NFC stickers for phones

Canadian BMO Bank announces PayPass NFC stickers for phones

It’s a tough job being Canada’s number one credit card issuing bank, but BMO Bank of Montreal does it with a smile. It’s probably smiling because it has recently announced that it will be providing customers with NFC stickers that allow for PayPass NFC payments.

Meanwhile, here in the States, people crowd around to look at an EMV card in wonder and NFC payments are practically legendary with only the few that report that they have seen such a transaction, let alone conducted one. The Canadian bank cares about their customers backs and have collaborated with MasterCard to negate the need for loose change that could potentially result in a trip to the chiropractor. Oh, how in an NFC world it doesn’t suck to be Canadian. Well, not in healthcare, crime and quality of life either… but what’s most important is the NFC. But let’s stop lamenting and get to BMO’s NFC announcement.

As you will know if you follow NFC on a regular basis, there aren’t that many consumers running around with NFC phones. There are a few solutions that allow non-NFC phones to conduct NFC transaction and by the far the least sophisticated and cost effective way is by the use of an NFC sticker. Nonetheless, BMO Bank is giving these NFC stickers to clients and they are not without merit.

However it gets the job done and does allow consumers to pay for goods and services using NFC on contactless POS terminals. What it doesn’t do is encrypt information in the secure element portion of an NFC phone and then allow apps that can add value added services such as receipts, coupons and loyalty programs to be embedded, and it won’t converge online banking with payments. In reality, most people are just getting used to the concept of NFC payments and what BMO Bank has put together with MasterCard and its PayPass system is perfect for most consumers who are using NFC payments for the first time.

If you have had it with your purse or wallet, BMO Bank has an NFC payment solution for you that requires no investment whatsoever.

“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 of Payment Products at BMO Bank of Montreal. “PayPass is part of the movement toward a ‘cashless’ society. It’s faster and more convenient than cash or debit, which requires a swipe and PIN.”

So, the benefit of putting an NFC sticker on the back of your current phone is speed, which doesn’t even account for not having to take a wallet out with you to pop down to the grocery store for milk. Another benefit of using the NFC sticker that BMO Bank is providing to its customers is that users are emailed a receipt when they use the card to purchase goods or services.

BMO Bank customers simply tap their mobile phone over the NFC PayPass reader at the point of sale and the transaction is instantly processed to their BMO Bank credit card account. For purchases under $50, no Personal Identification Number (PIN), swipe or signature is required.

“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 of Emerging Payments at MasterCard Canada.

According to Scott Lapstra, PayPass transactions account for nearly 1 in 10 of all MasterCard credit card transactions in Canada, with the average PayPass transaction at just over $40 – and close to 50% of those transactions being for purchases of $25 or less.

The nice thing, of course, for BMO Bank customers who are worried about security issues that could arise is that MasterCard credit cards issued by BMO Bank have zero liability. BMO bank customers receipt will also show the exact location that purchases occur so there is no reason to not give the NFC sticker a try if you are a BMO Bank credit card customer. Start imagining how you are going to spend those extra reward points that you’ll get for incidental purchases. We hope to see some banks follow the BMO Bank of Montreal’s lead down here in the States to ease in NFC payments.