Late last year, Canada switched over from using traditional forms of money printing and adopted a new plastic currency that is far more durable and long lasting than its former counterpart. It would appear that Canada is seeking to take it one step even further. The Canadian Imperial Bank of Commerce (CIBC) and Rogers Telecommunications have come to an agreement that will result in the launch of a mobile wallet that will work in conjunction with an equipped chip that can access all of your credit card data from one location.
This app will first be available on BlackBerry devices and will be released on all other major smartphone operating systems in the coming months. This integrated app will allow customers to pay simply by tapping their phone on a particular electronic reader at kiosks. The integration will even allow rewards programs to be scanned at the same time payment is made, crediting customers for transactions that currently involve using a credit card and a loyalty card.
Canada is attempting to create a mobile payment boom in the country as a way to avoid unnecessary costs in the future, but many other countries have attempted to go the same route with very limited success. With the CIBC setting standards and protocols for the use of mobile payments, it is very likely that several other banks and mobile communication providers will roll out similar technologies for their accounts and clients in the coming months.
Based on estimates, NFC (near-field communication) payments are expected to reach nearly $15 billion in 2013, up from $7 billion in 2011. While still a relatively small part of the economy, NFC payments will continue to grow in popularity at an exponential rate. Consumers are still weary of the technology, but as time passes, more and more individuals will find themselves unable to avoid it.