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 Rating: 4.5      Rate this article   14 
 29 Apr 2012

Use mobile phones to pay.


Thousands of Canadian retailers already have equipment in place to let customers pay for purchases with a swipe of their mobile phones, putting the country in the lead in developing a system that could one day make cash obsolete.

All that's needed is an agreement between banks, credit card companies and telecoms, and that appears to be coming soon, promising to transform how Canadians pay for everything from their morning coffee to a tank of gas.

If consumers approve the system - and that's still a real question- clip-and-save coupons, transit passes, library cards and perhaps even driver's licenses could become things of the past.

From the other countries experience…

Canada is not the first country to try such a project. Phone companies, credit card providers and banks in Britain, Japan and South Korea have tried to set up mobile payment systems, but none of them was successful.

In South Korea, for example, residents have used touch-and-go mass transit cards for years. But only a limited number of stores can process such transactions and phone-based payments have yet to take off.

In Britain, European Union regulators are examining whether telecom operators working together to set up a mobile payments system are violating competition rules, while Japanese consumers have yet to be tempted away from credit and debit cards.

"In Canada, we are more ready than probably any country in the world," said David Robinson, who heads the emerging business team at Rogers Communications Inc, the country's largest wireless provider. He expects to launch a "mobile wallet" within six months.

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