Mobile Payments 2012

On October 25, 2012, McCarthy Tétrault's national Consumer Retail group held a lunchtime client conference on mobile payment systems and digital wallets. For those of you unable to attend, the following is a few of the highlights.

But first, a little context for the uninitiated:

• Near-field communication technology (NFC) allows a user with a mobile phone, equipped with the necessary mobile application, to pass card data stored on the phone to the point-of-sale device to complete payment and other transactions.
• Mobile payments are often grouped into two levels of transaction: convenience vs. high value/risk transactions. Convenience transactions are characterized by low value/risk (e.g., under $50) and may be effected just by swiping the mobile device at the POS terminal. The other type of transaction involves high value/risk (e.g., $50 and greater), and would require a combination of a swipe of the mobile device at the POS and a pass code to be entered.