The Australian bank is the first bank in New Zealand to try out Host Card Emulation (HCE) m-payments.
According to Westpac, it is utilizing Carta Worldwide’s HCE technology for its three month NFC-enabled mobile payments trial in New Zealand, and the payments systems is compatible exclusively with Android smartphones equipped with the most recent software updates.
Westpac hopes to launch a digital wallet in the country.
Shane Howell, the chief product officer of Westpac said that the trial is the initial steps toward a fully digital wallet in the country and that they expect their mobile wallet will be available to customers in early 2015.
Howell stated that “We already use our smartphones to organize so many aspects of our lives, so using them to make payments is just a natural extension of this.” He added that the three month test is only the “first of four key components we are looking to develop that will make up a digital wallet for Westpac customers.”
He explained that there are additional components that the financial institution is considering incorporating into its digital wallet, such as loyalty programs and public transit transport cards. It is even considering a form of ID, such as a driver’s license. Howell said that what Westpac is working toward achieving is a “true digital wallet experience” that is easy for customers to use and that is safe.
Mobile payments security is an essential feature of the digital wallet.
Westpac developed the mobile wallet in a partnership it made with Carta Worldwide, a company known for global payments innovation. The Australian bank has said that for its digital wallet, security is key.
Rui Mendes, Carta’s chief technology officer said that with Carta’s advanced and layered security, every single mobile transaction that is made is protected. HCE allows for secure mobile transactions that are compatible with contactless terminals. The company’s cloud-based solution is equally as secure as using plastic cards because of its data security advancements and its app features, such as mobile PIN.
The three month mobile payments trial involves a selection of 40 Westpac customers and employees across New Zealand.
Although you cannot completely do away from your leather billfold, but this new technology called mobile wallet is gradually invading on your leather wallet. Well, one good thing that it is doing is saving paper and conserving environment.
MasterCard is the one of the companies that is doing well in mobile wallet market.
It has a belief which wants the world to look beyond cash. Recently it has upgraded the shopping experience with new innovations to Mobile Wallet Technology. It has added new service called ShopThis! This will help customers to leverage this new market. Well, it is a good option as world is getting more aware and inclined towards digital payment services.
Digital Wallet is all set to for transforming natural way of transaction. Mobile Commerce is claimed to be the largest growing sector by 2020. Mobile ticketing and mobile money transfer will follow. The main reason behind this growth is increasing use of mobile payment services. But still a large chunk of population prefers traditional Cash and Card payment. One major reason according to AMR report is Security concern among them with technological infancy. A recent report published by Allied Market Research projects that the market for Global Mobile Wallet will reach $5,250 billion by 2020 at CAGR of 127.5%.
Mobile Wallet has really transformed shopping experience of many consumers with its enhanced and astounding features.
It has brought the physical and digital market virtually at one place. Looking at its potential, many telecom companies are coming together to innovate and give a better product. This will act as a catalyst for market growth. PayPal has emerged as best player in Mobile Wallet solutions. As per survey by Forrester to 4000 consumers, PayPal got 38% of vote while Amazon followed it with 35% of vote. Google is the biggest player in NFC (Near Field Communication) mobile technology with the launch of mobile wallet technology in 2011.
Application, Mode of Payment and Stakeholders are there segments that form Mobile Wallet market.
Application segment is further divided as Mobile commerce, Mobile ticketing, Mobile money transfer etc while Mode of payment segment is comprised of NFC and remote payment. Stakeholder’s segment includes Service providers, Handset manufacturers, Mobile operators, OSS/BSS solutions etc.
Author: Ashish Gedamkar
