Visa, today approved a backend solution developed by Research in Motion that enables secure Near Field Communication mobile payments.
The Secure Element Manager developed by the Waterloo, Ont-based smart phone company for wireless carriers can securely manage credentials on subscriber identity modules (SIM) cards installed in all types of NFC-capable mobile devices.
The BlackBerry 10, slated for release on January 30, will feature NFC capability
“The approval from
Visa of RIM’s SEM is an important step in that it will enable carriers to support Visa-issuing banks and financial institutions,” said Frank Maduri, senior director of NFC services and TSM product management at
RIM.
Following the news of Visa's approval, RIM shares rose 85 cents, or 5.96 per cent to $15.12 at the Toronto Stock exchange.
RIM stock closed at $11.79 last Thursday. The recent gains take RIM stock above $15 for the first time since last February.
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EnStream, a joint venture between RIM, service providers Rogers, Bell and Telus and the Canadian Imperial Bank of Commerce, recently launch a mobile device ‘tap-an-go’ program that allows BlackBerry users to securely pay for products using their smart phones.
Despite having been in use in Asia and Europe for nearly a decade now, mobile payment has yet to catch up in Canada. Among the key hurdles are a lack of NFC-enabled devices and consumer confidence in the technology.
Recognition from a leading credit card company such as Visa could help a long way in convincing more consumers that NFC-based mobile payment is secure.