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Mobile Payment: What it is. How it works. What it means for Canadians Disclosure Number: IPCOM000244618D
Original Publication Date: 2014-Feb-13
Included in the Prior Art Database: 2015-Dec-30
Document File: 5 page(s) / 62K

Publishing Venue



Canadian Telecomunication companies have provided a bried to the House of Commons Finance Committee on Mobile payments.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 22% of the total text.

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What it is. How it works. What it means for Canadians.

By EnStream LP for the House of Commons Finance Committee February 13, 2014


EnStream was established by Bell, Rogers and TELUS to develop technology to permit Canadians to make mobile payments using their phones instead of their credit and debit cards or cash. EnStream's NFC1-based mobile payment technology and services enable financial institutions to securely download encrypted financial credential information to their customers' smartphones over the air (OTA), enabling those customers to use their phones to make credit and debit card purchases. The technology will also allow customers to perform various other NFC- enabled transactions. EnStream's technology is rapidly becoming a standard in the market for Canada, as our customers now include most of the major Canadian mobile network operators (MNOs) as well as several of Canada's major financial institutions. EnStream is proud to be part of why Canada is a world leader in secure mobile credit and debit card payment technology, and the future is exciting.


While there are different types of mobile payments, we focus on fully secure credit and debit 'card' smartphone payment capability. Payment transactions use a smartphone equipped with an NFC antenna and payment-capable SIM card, onto which a customer's credit and debit card credentials can be securely stored. To the retailer, a payment with a phone appears like a contactless debit or credit card. For the customer, it is an even more convenient way of paying from their existing credit or debit accounts. In the future - in some cases the very near future -- all manner of credentials will be securely downloaded to smartphones over the air, and used for NFC-based smartphone transactions: loyalty 'cards', gift 'cards', coupons, government-issued identity 'cards' such as drivers' licences and health cards, transit passes - even hotel room keys.

This paper outlines:

• The evolution of payments

• The different types of mobile payment

• What a "wallet" is and what it does

• What it all means for consumers, merchants, banks, other issuers and MNOs

1 NFC is for Near Field Communication, a radio-frequency identification (RFID) technology permitting close proximity communication between devices - in this case a phone and a terminal.

55 UNIVERSITY AVE, SUITE 202, TORONTO, ONTARIO, CANADA M5J 2H7 tel 416.365.9000 fax 416.365.0074

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• How and why Canada is a world leader in mobile payments


• Magnetic strip: The payment card stores data on a magnetic strip that can easily be read or copied. (By far the majority of credit card use in the US is still magnetic strip.)

• EMV (Europay, MasterCard and Visa) Chip and PIN: Much more secure than magnetic strips, as the card stores encrypted data on a microprocessor chip. Data cannot be read without encryption keys, and the chip...