The new guidelines dictates how mobile payment capabilities can be offered in the Canadian market, exchange of information among various parties to a transaction including financial institutions, payment card companies, telecommunications companies and merchants.
CBA said that the aim of the guidelines is to ensure safety, security and ease of mobile payment for merchants and consumers, allowing space for innovation and competition among market players.
The guidelines were developed as a result of the federal government’s Task Force for the Payments System Review in 2011, and provide definition for a fair, transparent, and competitive Canadian market for emerging payment options with mobile devices.
Several financial institutions such as Bank of Montreal (BMO), National Bank, Canadian Imperial Bank of Commerce (CIBC), Credit Union Central of Canada (Canadian Central), Desjardins Financial Group, Royal Bank of Canada (RBC), Bank of Nova Scotia (Scotiabank) and Toronto Dominion Bank (TD) supported the preparation of mobile payment guidelines.
The new guidelines will pave the way for cashless digital payments through smartphones offering different payment options chosen by the consumer, and will eliminate the need of carrying traditional wallet.
