The mobile payment industry has been evolving rapidly as of late. Google introduced host card emulation (HCE) in Android 4.4,  Visa and MasterCard officially threw their support behind HCE last month and most recently, EMVCo released their framework for tokenization. What this means for mobile payments is standards are being developed and adopted faster than before. Names we trust in mobile payments such as Google, Visa, and MasterCard are taking the reigns and distancing themselves from carriers and phone manufacturers.

This is the progress that the mobile payment industry needed. It promotes an open mobile payments system that can push the evolution of the mobile wallet forward. In the coming months, the mobile wallet will be set to take off and application developers like Clearbridge Mobile will be doing wonderful things with it.

Except, Canada seems to be struggling.

The Canadian market continues to move forward without a basic, open mobile wallet infrastructure. Carriers as well as banks are teaming up together in an effort to monopolize the market. What this means in Canada is that for mobile payments to work – consumers need to have a special type of SIM, a specific bank, and a specific phone – so they can tap and pay for purchases under $50.

Examples of Mobile Payment Infrastructures:

Rogers Suretap  Requirements

CIBC Credit Card + Suretap Compatible Device + SureTap Sim Card + SureTap Mobile App

Google Mobile Wallet Requirements

Android Phone running KitKat + Bank Card or Credit Card

Rogers Suretap is just one of many examples. Various carriers and banks have linked together with a handful of smartphones to provide mobile payments. The market is over complicated with complex requirements for consumers.

For mobile payments and mobile wallet to be effective, it must present no barriers. Consumers are expecting it to be as easy as downloading an app and entering in their banking information. Canadian players need to work with each from all aspects (tokenization, payment processing, communications etc) to bring an open mobile wallet concept to consumers – or else mobile wallets will not take off in Canada.

For more information about mobile wallets, mobile payments, or how to learn what Clearbridge Mobile is doing in this space, talk to us today.