This week, Canada's three major wireless firms will unveil a service that enables people to exchange money via mobile.
Bell Canada, Telus Corp and Rogers Communications united four years ago to form a jointly owned firm called EnStream LP, which now employs about 30 people in Toronto, in addition to outsourcing some customer service and development. The digital cash exchange platform is the first fruit of their labors.
"The end vision is you can take your billfold or purse and stick it into your phone," said VP-New Business Planning David Robinson of Rogers Wireless.
The move marks the first step toward rendering not just credit cards unnecessary but also personal identification cards. And while mobile payment services exist in other countries, such as DoCoMo in Japan, the Canadian telecoms say their offering is the first conceived by full industry collaboration, writes The Globe and Mail.
Software called Zoompass — downloadable to mobile phones directly from EnStream — enable users to access up to $1000 per day from bank accounts or credit cards, then send it to other individuals with the same software. Recipients will have immediate access to the money, which shall be held in trust by HSBC Bank Canada.
Funds can be withdrawn by transferring them to bank accounts, or using an EnStream-proffered MasterCard that can be instantly credited. Zoompass will charge users 50 cents to send money, with the maximum allowable size of each transaction capping at $250.
As an added incentive, the software provides instant transaction completion notices and can synchronize with a phone's contact file.
Presently, Zoompass does not enable users to pay vendors with their phones, but EnStream suggests such capabilities are around the corner.
Over the course of the next year, handset makers will likely begin incorporating payment-enabling chips into mobile phones, EnStream added. And as merchants begin to adopt "contactless" data readers — technology that enables users to pay for products with their phones — banks will be able to issue credit cards directly to handhelds.
"I don't think this is going to happen overnight," acknowledged VP-Corporate Development Almis Ledas of Bell Mobility.
"But eventually, people will realize that all they have to carry with them is a cell phone, not a wallet."
Zoompass will be available beginning today for subscribers of Rogers, Fido, Bell, Telus, Solo Mobile and PC Mobile, Unwired reports. Those inclined can follow its progress on Twitter.
