In addition to Smart Cards, contactless debit card payments could soon be widely available in Canada thanks to a new innovation from Interac. The debit system is celebrating the 25th anniversary of its pin-based network and has announced a number of new developments for the coming years. In addition to driving the movement towards chip and pin debit cards in Canada, plans are also underway to create a contactless payment option.
Calling contactless technology "a fast and convenient payment alternative to cash for everyday small purchases", the card firm noted in a July 15th press statement that its partnership with Inside Contactless will help make this move possible. But Visa might have a head start: Visa Canada to Showcase Contactless Debit at Olympics in Vancouver
Oh, by the way...a recent study by INTERAC(R) Study Reveals Three-quarters of Canadians Still Using Personal Cheques. Here's Interac's 25th year Anniversary Press Release:
INTERAC Celebrates 25 Years of Connecting Canadians to their Money
From in-store to online; from magnetic stripe to chip; from contact to contactless; INTERAC continues to evolve -
TORONTO, Nov. 9 /CNW/ - INTERAC marks 25 years of providing Canadians secure access to their money from coast to coast to coast. On November 9, 1984, a single national PIN-based network was born out of a vision to connect Canadians to their money anywhere, anytime. INTERAC's growth and evolution took off from that point and today, both consumer awareness and usage levels are almost unmatched worldwide.
"INTERAC is a world-class debit system and a made-in-Canada success story," said Mark O'Connell, President and CEO, Interac Association/Acxsys Corporation. "With its 24/7 convenience, reliability and security, Canadians have embraced INTERAC to become some of the highest users of debit per capita globally. It has truly changed the way we live our daily lives and we can all share in and be proud of its success."
INTERAC has become Canada's preferred method of payment, surpassing cash and credit, and today it not only connects Canadians to their money at the ABM and at the store, but also online through Web-based services: INTERAC Online, for online purchases and INTERAC Email Money Transfer, for person-to-person money transfers.
New features and products continue to be developed and implemented to meet the needs of Canadians and the marketplace, including the movement to chip on debit in Canada, which INTERAC is driving. A contactless INTERAC debit payment option is also on the way that will provide customers a fast and convenient payment alternative to cash for everyday small purchases.
"We operate true to our Canadian roots, and we leverage what makes us different than the competition," said O'Connell. "We will continue to offer Canadians the best payment products available and the value-add of being a low-cost payment option. That is what has made us successful and will drive our success over the next 25 years and beyond."
INTERAC milestones... for 25 years, proudly Canadian
----------------------------------------------------
1984 Five financial institutions envision one national PIN-based network
to connect Canadians to their money anywhere, anytime.
1986 Financial institutions link their ABM networks to give cardholders
broader access to cash withdrawals at ABMs across Canada.
1990 INTERAC Direct Payment launches in Ottawa/Hull.
1994 INTERAC Direct Payment launches nationally.
1996 First non-financial institution offers cash withdrawals at ABMs.
1997 One billion INTERAC Direct Payment transactions processed.
1998 Canada marks the highest number of point-of-sale transactions
compared to other countries around the world, with 44.7
transactions per inhabitant.
2000 INTERAC Direct Payment surpasses cash as Canadians' preferred
method of payment.
2004 INTERAC Email Money Transfer service launches.
2005 INTERAC Online launches.
2007 Canada's first INTERAC chip debit card transaction conducted.
2008 Chip technology begins to roll out across Canada.
2008 Nearly 4 billion INTERAC Direct Payment transactions processed,
worth $168 billion.
2009 INTERAC partners with global leader INSIDE Contactless to bring
contactless debit to Canada.
INTERAC...Canada's leading payment network- 35 million cards in circulation; 3.7 billion INTERAC Direct Payment
transactions (Source: Interac Association, 2008).
- 630,534 store terminals; 57,864 ABMs (Source: Interac Association,
2008).
- Canada has 1,748 ABMs per one million inhabitants - the highest
number of ABMs compared to any other country in the world (Source:
Bank of International Settlements, 2007).
- Canada is among the highest users of debit compared to other
countries around the world with 104 transactions per inhabitant,
second to Sweden with 125 transactions per inhabitant (Source: Bank
of International Settlements, 2007).
- INTERAC Direct Payment is the preferred method of payment in Canada,
with 45 per cent of Canadians choosing INTERAC Direct Payment,
compared to 22 per cent who choose cash and 31 per cent who choose
credit (Source: Strategic Counsel, 2008).
- Almost 60 per cent of all card payment transactions in Canada are
debit (Source: The Nilson Report). For further information: or to book an interview with an Interac Association/Acxsys Corporation spokesperson, please contact: David Weinstein at Strategic Objectives at (416) 366-7735 or davidw@strategicobjectives.com; Tina Romano at Interac Association/Acxsys Corporation at (416) 869-5062 or tromano@interac.ca
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