Payments system overseer Payments NZ says it has launched standards designed to ensure the integrity, efficiency and security of mobile payments via Near Field Communication (NFC) enabled smartphones.
Payments NZ says the Mobile Device Rules and Standards are limited to NFC payments as this is considered the only technology mature enough for the introduction of such standards. It says the standards will govern the mobile payments system, providing an industry-agreed system when telcos and banks launch new payment options for customers.
“The new rules help protect the credibility and security of domestic payments, which will give customers greater confidence to use the technology,” Payments NZ CEO Steve Wiggins said.
The standards come ahead of the expected mobile wallet launch, through the Trusted Service Manager (TSM) project, later this year. The country's major banks, telcos and payments companies are preparing to launch the TSM, which is the common infrastructure to allow payments via credit cards, loyalty cards and coupons through a consumer's NFC enabled smartphone.
“Today, customers use any card they want to pay for goods. Soon, they’ll be able to choose an application on their mobile phone to do the same thing," said Wiggins.
"When contactless mobile payment applications are rolled out by banks and telecommunications companies later this year, NFC capable smartphones and contactless-capable point-of-sale terminals will be compatible. This will work in a similar way to contactless payment options that come with some credit and debit cards now. Customers will be able to take their items to the counter and tap their NFC-capable smartphone to pay."
“We’re confident the rules and standards will meet the needs of emerging technologies this year, as well as maintain the flexibility to respond to new developments in the rapidly evolving market. We’re now looking forward to seeing what the industry comes up with in terms of mobile payments,” Wiggins added.
Payments NZ is owned by ANZ, ASB, BNZ, Kiwibank, Westpac, TSB, HSBC and Citibank.