Over the last few years, many of the companies that have been getting into the mobile payments industry aren’t typically seen as being involved in financial services at all. More often, they were tech or retail giants. However, some banks are now starting to wade into this realm as well, and one Canadian banking giant seems to have tapped into an idea that could significantly ease adoption.
TD Canada Trust recently announced that it would allow Android users to utilize its existing mobile banking app to make mobile payments as well, according to a report from the institution. All they would have to do is load their bank-issued credit cards into the app, and then use that to make payments virtually anywhere tap-to-pay is accepted throughout Canada. This works on any mobile device enabled with near-field communications technology which is running Android 4.4 or later, and joins RBC Wallet as the two major Canadian financial institutions utilizing this technology.
While this clears a lot of the obstacles related to mobile adoption out of the way quickly and easily, some concerns may still linger for shoppers, the report said. Many people express concern about sharing bank-related data with non-bank enterprises, which obviously isn’t an issue here. Another issue is that relatively few merchants are equipped to deal with mobile payments in the first place, meaning that even if consumers want to utilize them, their options are limited.
But the big lingering issue for this new payment option from TD is that while the vast majority of retailers will accept this new type of transaction, many will also require that consumers make purchases of at least $100 to use the platform, the report said. That’s likely to be a major hurdle, at least in the early going.
In addition to all this, TD is looking to further assuage concerns about security by adopting the latest tokenization standards from Visa, the company that already issues its credit cards, the report said. This will further help to ease the mobile payment process and make all such transactions more secure as a consequence.
“We continually look for opportunities to elevate the digital experience for our customers,” said Rizwan Khalfan, chief digital officer at TD. “The adoption of Visa’s tokenization solution allows us to deliver a faster, simpler, and more accessible mobile payments experience, backed by a secure technology developed by a global leader in payments.”
Even for retailers and consumers outside the U.S., this development could be good news. That’s because mobile payments are generally more secure than traditional credit card transactions, and can be more convenient as well. As a result, it might be important for small businesses in particular to get on board with these types of transactions, because consumers are very likely to do so in the near future, and any companies that establish themselves as early adopters may be set up to take advantage of the coming wave of interest.Back To Blog