Innovative mobile payment pilot program is launched

Three giants  - US Bank, MasterCard Worldwide and Nokia have developed an innovative mobile payment pilot program launched in Spokane, Washington. Nokia has developed a new generation of the mobile phone - Nokia 6131 NFC equipped with the MasterCard PayPass payment platform and integrated Near Field Communication Technology necessary to build the communication with MasterCard PayPass readers that will allow the customer to process the payment for the purchases with a tap of their mobile device. All transactions are processed via same terminal as any other transactions made by the mean of MasterCard. In addition, the payment account information can be protected by the password upon the request of the consumer. Moreover, in case of lost or stolen phone, payment feature can be easily disabled by a simple call to US Bank (similar to service offered to regular cardholders).

The new pilot program allows to abolish the necessity to hand over a card, and to swipe it through the reader. Once the terminal is tapped by the phone customer receives the payment confirmation. Thanks to a new payment method there's no need to sign for transactions under $25 (applicable to any transaction processed via MasterCard PayPass, a micro-payment solution) In order to process payment it is required or both customer and seller to proceed with  Over-the-Air (OTA) delivery of MasterCard PayPass application, provided by Venyon to ensure further effective implementation of mobile payment pilot program and its future commercial rollout. Venyon allows to build the communication in NFC system through development and operation of the protected and flexible service platform for any OTA provisioning of the consumer applications. It also allows customer to remote personalization and management of the payment features.

Despite the  potential benefits for the users from the new mobile payment pilot program we would like to express our strong fears and concern that the implementation of the new program with its integration into initially unsecured mobile device  may considerably increase fraud, especially skimming. In addition the non-signed under $25 dollars processed transactions would become an attractive and easy achievable for all wide variety of hackers who would receive an easy access to bank account and would definitely withdraw more than $25 dollar asset.

Natalia, reporter of Ecommerce Journal