In a move that is expected to boost the worldwide use of smartphones and tablets as point-of-sale terminals, First Data, now part of Fiserv (NASDAQ: FISV), is enabling merchants to use their own devices to accept payments of any amount without any additional hardware.
This is ground-breaking for small businesses and service providers that operate remotely due to its first-of-its-kind PIN on mobile capability, which facilitates secure PIN entry on a consumer-grade mobile device. This simplifies payment acceptance by allowing merchants to accept PIN-based contactless transactions without the need for a separate card reader or PIN-entry device, opening new market opportunities for merchants and allowing even micro-businesses to accept non-cash payments.
Fiserv, a leading global provider of payments and financial services technology solutions, recently completed the first PIN on mobile payment via the app-based solution. Following security testing, the solution, developed jointly with Visa, Samsung, and PayCore, is being piloted in Poland, with plans to expand in the EMEA and APAC regions.
“The way people want to pay is changing,” said John Gibbons, executive vice president and head of EMEA at Fiserv. “Contactless CHIP and PIN payments are common, yet over 23 million* micro merchants in Europe alone may lack terminals to accept them. We’re making sure no merchant is left out and helping them do business in the cashless economy by turning the smartphone into a card acceptance device.”
The flexible, cost-effective solution, which is currently available on select Samsung devices, utilizes embedded near-field communication (NFC) functionality. A payment can be made with contactless cards, NFC-enabled mobile phones, or other NFC-enabled devices such as wearables.
“This innovative service is a milestone for modern entrepreneurs. It will allow Samsung mobile users to do more than just pay with their phones; it will let them accept payments in places and situations where it might have been impossible otherwise,” said Marcin Garbarczyk, Marketing and Strategy Director at Samsung Electronics Polska.
Visa approved the solution to authorize contactless payments with PIN capture through its Visa tap to phone program.
“With Visa tap to phone technology with PIN capture capability merchants of any size, especially those operating outside of their premises – like plumbers, landscapers or couriers – will now be able to accept digital payments on their phones in a fast, safe and convenient way,” said Katarzyna Zubrzycka, Head of Merchant Sales & Acquirer, Central Eastern Europe, Visa.
PayCore provides EMV software to facilitate transactions that are enabled by the Fiserv solution.
“At PayCore, we are delighted to be a technology provider for this innovative solution,” said Turgut Güney, CEO of PayCore. “We are sure that this disruptive technology will boost the use of smartphones and tablets as POS terminals in the market, enabling card-present transactions of any amount to be carried out in a secure environment.”