CIBC and Rogers lay out their plans for the future of mobile payments in Canada

By Bla1ze on 16 May 2012 03:18 am EDT
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CIBC and Rogers lay out their plans for the future of mobile payments in Canada

Press Release

CIBC and Rogers Unveil the Future of Mobile Payments in Canada

TORONTO, May 15, 2012 - CIBC and Rogers Communications today announced an agreement to launch Canada's first joint mobile payment solution, allowing Canadians to pay with their CIBC credit card at the checkout counter using their Rogers "Near Field Communications" (NFC) enabled smartphone. Beginning later this year, customers will be able to use this payment capability at merchants across Canada where contactless credit card payments are accepted.

This announcement represents the first time a bank and a wireless carrier have joined forces to offer a commercially available mobile payments solution to Canadians that leverages the secure SIM card inside an NFC-enabled Rogers smartphone. This new solution aligns to guidelines announced yesterday by the Canadian Bankers Association for mobile payments in Canada, as well as those developed by respected international associations such as the GSM Association (GSMA), the association of mobile operators and related companies dedicated to standardizing and supporting GSM technology.

"As the leader in delivering mobile financial services innovations in Canada, we are pleased to introduce yet another innovation in the market that will shape the payments experience of the future," commented David Williamson, Senior Executive Vice President, Retail and Business Banking, CIBC. "By teaming with Rogers, CIBC clients will soon enjoy the convenience of paying at the checkout with their mobile device while enjoying the existing benefits of their CIBC credit card, including loyalty rewards."

"Canadians are embracing new technologies at an accelerated pace and we know they're interested in using their smartphone for mobile payments," said Rob Bruce, President of Communications, Rogers Communications. "We've been laying the foundation for mobile commerce and the ecosystem is ready to give Canadians the convenience, security, and peace of mind they deserve," said Bruce. "Today's announcement with CIBC represents an important first step toward a whole new world of mobile transactions which is a key growth area for the company."

Some of the key features of the new mobile payments solution include:

Full access to a client's existing CIBC credit cards on their smartphone at no extra cost - whether Visa or MasterCard - this gives clients the opportunity to earn loyalty points on purchases as they do today.

Multiple layers of security - Paying with your NFC-enabled smartphone will be as secure as using your credit card today. Clients will receive the same fraud protection they do with their contactless credit card, and secure encryption technology will add to the layers of security already in place on credit card purchases. Clients will also have the option to set additional password protection.

No "stickers" on your phone - this new payment capability will leverage the secure SIM card inside a mobile device for payments, meaning clients can manage their credit card credentials on a secure platform, and won't need to worry about stickers attached to their phone.

This new CIBC mobile payments capability will be available on select BlackBerry® smartphones on the Rogers wireless network when the solution launches later this year, with additional device choices for clients available following launch. MasterCard's Mobile Payments Readiness Index ranks Canada ahead of the United States and second out of 34 countries.  A key finding emphasizes that partnerships among the key players in the mobile payments ecosystem - financial institutions, payment networks, telcos, governments, technology providers - are essential to accelerate the commercialization of mobile payments.

Today's announcement builds on CIBC's leadership position in delivering mobile innovations to clients. CIBC was the first bank in Canada to launch a mobile banking App in 2010, and more recently became the first bank in Canada to deliver an App that allows clients to trade stocks on their mobile device through the CIBC Mobile Brokerage App. The bank also offers the CIBC Home Advisor App, free to all Canadian homebuyers, giving them access to information about housing prices and other key neighbourhood data in an area they may be considering. CIBC was named "Best in Mobile Banking" globally by Global Finance magazine in 2011.

In 2002, Rogers launched its GSM wireless network, and last year was the first carrier in Canada to launch LTE, bringing the largest and fastest network and a global wireless standard to Canada. Today's announcement builds on this foundation of world-class networks, Rogers history of innovation and mobile commerce expertise, specifically in the area of mobile proximity payments. Over the past six years, Rogers has worked with the GSM Association, including the "Pay-buy-Mobile" initiative to get industry standard payment cards - like MasterCard or Visa - on industry standard GSM devices. In the past year, the GSM Association further named Rogers as one of many operators worldwide committed to SIM-based NFC solutions and services.

"The GSMA congratulate CIBC and Rogers on the launch of their mobile NFC services and we look forward to many more markets following Canada's lead in bringing exciting and interoperable NFC services to life," said Anne Bouverot, Director General, GSMA. "This is the year when mobile NFC is set to take off and the GSMA will continue to support our members around the world who will be launching their mobile NFC services later this year."

CIBC (CM: TSX;NYSE) is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.

Rogers Communications is a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider. Through Cable, we are one of Canada's leading providers of cable television services as well as high-speed Internet access and telephony services. Through Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, and sports entertainment. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI). For further information about the Rogers group of companies, please visit www.rogers.com.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited

Reader comments

CIBC and Rogers lay out their plans for the future of mobile payments in Canada

32 Comments

Oh sweet. I am first. I know it is juvenile, but this is the first time I am first here on CB :p

Porsche Carrera S 997.2
Porsche Carrera S 991 (Coming soon)

That is juvenile. Really.

I'm number two!!! This is the highest I've ever been! Hopefully first soon!

No worries. If you don't like his signature, just ignore it. I just thought it was fun for two adults to try and be first. It really doesn't matter.

My goal is to be first on an *editorial* for Double-points!

I want to say that mobile payments is one of the areas that Blackberry's competitors are weaker compared to the ground-up security of Blackberry.

As mobile payments increase people will start to take the security of their cell phones more seriously. In reality, I don't think that there is huge risk for Apple. But Android, with its "chaotic cesspool" of apps and malware, will be vulnerable as people get nervous about having their money stolen electronically.

Apple has refused to have anything to do with NFC. I suspect some of the relentless RIM-bashing is from Apple, worried that if it takes off they will have a huge park of un-upgradeable phones out there, and that if people have to replace them to use NFC, they may not buy Apple again. If nfc takes off and I had an iPhone 4s (versus a Nexus or a BB9900 say) I would be pretty pissed off.

Apple have already lost the plot on this one, hence the attached stickers being used by Barclays and others as an interim solution. Recent top end Android phones - Nexus, Eluga, the latest Samsung - all have NFC. Windows 8 will have it on all kinds of things. Even mid range BBs have it.

This may be a factor in why, despite having such a big market share, Apple is trying so hard to keep other makers' phones out of the US.

Apple refused it because they need to find a way to "re-invent" NFC so that they don't have to pay companies like RIM to use it.

I'm not sure about this. I suspect it is a combination of not invented here syndrome with the very limited space inside an iPhone and the well known antenna problems with the existing design. It is possible too, given Jobs's obsessive control of design, that he couldn't see the point of such a feature. Billionaires don't usually need to make small payments, they don't use the self checkouts in supermarkets, they don't use public transport.

If Apple has a weakness it is that its products were designed to appeal to well off people and be seen as aspirational, and we're currently having a world financial crisis that looks to run for quite a while yet. Meanwhile RIM is delivering economical NFC-equipped phones in volume to emerging markets. It is an interesting gamble, one that suggests that RIM thinks very long term and is occasionally in the forefront of new features.

I think myself that NFC has the potential to be such a transforming technology that quite a lot of vested interests would like to hold it back, not just Apple.

BlackBerry bashers say that RIM is not innovating but I see them making all kinds of useful upgrades.

BB Travel
BB Protect
BBM Music
People say OS7 was not a big upgrade but I say try picking up an old OS6 BB device and try working it like you do your new OS7 Bold. I say that was a major upgrade.

This is just one more example of how RIM is staying ahead of some competitors in the useful, functional things.

I've been a fan of the MintM Mobile Application.. It is a loyalty based reward system which rewards points even for window shopping and can redeem these points in big and fancy outlets.. Awesome app.. Just reviewed this app.. thought of sharing it with you people..
its free downloadable from

http://www.mintmapp.com/smartphone

Works best in my Blackberry.. Enjoy :)

If it is a trustworthy app, why isn't it on App World?

No one with a sane mind would install apps directly from vendor's sites. Don't know what you're getting.

This is actually the only security Apple has: you must go through iTunes. Android has none.

Even though BlackBerry is secure, it is still vulnerable if apps are installed from untrusted sites. Of course, BES managed BlackBerrys are most secure, but individuals with BlackBerrys (BIS-only users) should take some care when downloading apps.

I hope this doesn't end up being strictly for Rogers customers. Isolating half of canada due to carier exclusivity would be stupid.

Still excited for this. Simplicity at its best.

I was going to say something similar. While I can't wait to have this ability, it's not something I would switch carrier or bank for. Let's hope it opens up soon to everyone.

This is the problem with RIM's innovation if that happens. RBC Royal Bank Canada is waiting for 2014 to release NFC phone base transactions while Rogers may limit the CIBC app access! So much for progress!

the real good thing about this is no longer needing to carry a rewards card! keep it up rim. you are on fire!

This was a topic on the CBC's Lang & Leary Exchange. They called it the digital wallet and i could tell they were so out of touch. After reading many articles on CB and its affiliates, one knew this was already available on MasterCard and banking was just a matter of time. On Monday night's program, they spoke of "coming soon", "maybe in 2014 or 2015 when the technology is available"? Like wtf? These folks really need to do their research:

http://www.cbc.ca/news/business/story/2012/05/14/mobile-banking-cellphon...

The only valid spin they took was that the cell carriers would 'charge' banks to use their spectrum to allow customers to perform transactions. Ridiculous as it sounds, the rich feeding the richer and passing those costs down to the consumer. It would be a shame if these boardroom shenanigans prevented the evolution of the mobile banking industry. There will always be the paranoid in adopting the technology but once a proven secure solution becomes mainstream the doubters just fade away.

What?!?! Nothing from the "security doesn't matter and NFC is not out in the real world anyway" folks?!?!?!
Although there are NFC enabled Android devices I wouldn't do any banking on them. GO RIM!!!!!!!

Pretty cool. Though I am a CIBC customer, I am not nor will I likely ever be a Roger's customer. So unless they partner with other carriers, it won't do me much good.

exciting news... will be more suited for me if TD and/or BMO get on board.

Bold 9900 - Playbook 32GB - Lumia 800