WATERLOO – Research In Motion has been selected by EnStream LP, a joint venture of Canadian carriers Bell, Rogers and Telus, to provide its Secure Element Manager (SEM) solution to manage credentials on wireless handsets in Canada that support Near Field Communication (NFC) services. NFC-enabled smartphones can be used as “digital wallets” that allow payments to be deducted from stored accounts simply by placing the phone in front of a transponder at the retail point of sale. SaskTel also confirmed they have partnered with EnStream and will exclusively utilize their Secure Element Management (SEM) platform.
RIM's SEM solution is designed to securely manage credentials on SIM (subscriber identity module) cards installed in all types of mobile devices, including BlackBerry smartphones, Android devices, and Windows phones.
While mobile payments will be the first widely adopted smartphone capability, the EnStream solution will also allow smartphones to be used for transit passes, tickets, access keys, couponing, loyalty rewards, library cards, driver's licences, health cards – in effect placing much of the contents of our wallets securely and directly into smartphones
"We selected RIM for their long-standing relationships with mobile operators and financial institutions, and their track record of operating a secure network for connected services," said Almis Ledas, Chief Operating Officer of EnStream. "By adopting the secure GSMA Global Platform standard and using SEM infrastructure hosted and operated by RIM, consumers and financial institutions can have full confidence in financial credentials enabled through EnStream."
"More than 1 in 4 smartphones shipped worldwide in 2013 is expected to include NFC technology," said senior practice director Jeff Orr of market intelligence firm ABI Research. "With an additional 5 million NFC-enabled smartphones shipping to Canada next year and upwards of 65 million over the next 5 years, consumers will increasingly turn to mobile payments instead of a separate debit or credit card."
"Working with EnStream, we're delivering a service that will enable speed, security and convenience in mobile, contactless payment. RIM's SEM solution will help deliver mobile payments and other NFC services to all carriers across all handset platforms that support NFC technology in Canada," said Andrew MacLeod, Managing Director for Canada at RIM.
Through the infrastructure that RIM's SEM solution provides, financial institutions in Canada will have a single gateway allowing them to support any customer with an NFC-enabled smartphone that wants to enable a "mobile wallet" application. RIM says it SEM solution provides the infrastructure that will securely manage information credentials for NFC payments, which can be used by any financial institution, carrier, or smartphone.
"For banks and for Canadian consumers, RIM's SEM solution is designed to make payment with your smartphone both seamless and secure. Whether you're filling your gas tank, picking up a coffee, or buying groceries, making a purchase will be as simple as tapping your smartphone," added MacLeod.
EnStream also announced the formation of a Mobile Advisory Council for potential issuers of NFC (Near Field Communication) credentials on smartphones. The Council will provide a forum for financial institutions, retailers, transit authorities, government agencies and other stakeholders in the mobile-credential ecosystem to share best practices and ensure all participants can take practical advantage of these new capabilities.
The recently concluded Canadian Government Task Force for the Payments System Review encouraged Canadian banks and wireless carriers to work together to create the conditions for mobile payments.
"By deploying shared, open and accessible mobile credential management infrastructure, and providing a forum for coordination and timely access to information, EnStream is embracing the recommendations of the Task Force and accelerating the rate at which Canadians can realize the benefits of a mobile digital payments system," said Pat Meredith, who chaired the task force and is an expert on financial sector strategy with a particular focus on payments issues.
"Canada already leads the world in retail payments through contactless cards. The next step is full mobile payment capability using smartphones and NFC technology, ushering in a new era of payment security and convenience at retail outlets."
