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TX-based NUSPAY is introducing a new VAS ” not Value Added Services, rather Virtual Account Solution for cashless, cardless and contactless transactions. The new product will be unveiled on April 1, 2015.
The primary objective of NUSPAY is to replace bank cards, cash and cheques by using Near Field Communication (NFC) tags and mobile devices as an alternative payment solution with additional security features of tokenized method of payment – Nuspay Virtual Account Solution (NVAS).
Unlike the existing tokenization payment solutions, which are linked to customer’s credit card details, NUSPAY’s Virtual Account is the first in the world payment technology that is based on the customer’s real bank account. A transaction processed through the token based method replaces sensitive personal data with a temporary payment token, which is generated for a very short time and is linked to parameters like the transaction amount, merchant identity, transaction location and other similar details to keep the specificity of the transaction intact. Even if NUSPAY chip is compromised the customer’s account details are secured.
Thus, NVAS can successfully deal with most non-cash payment fraud attempts, especially the ones subject to card-not-present and counterfeit transactions. The temporarily generated Virtual Account payment token will discourage fraudsters and hackers from obtaining customer’s account data as well as their identity information. This makes NUSPAY payment solution unique on the today’s global market of non-cash transactions.
Apart from security benefits, Virtual Account comes in handy as a time-saving and hassle-free payment tool. NUSPAY users can link multiple bank accounts to NVAS, not having to bother remembering which of their accounts has enough funds for a particular purchase. If there is a lack of funds on one account, the processing system doesn’t cancel the transaction. Instead it checks whether the necessary funds can be taken from the client’s other accounts, and doesn’t begin the tokenization process unless funds are available in any of the accounts.
Banks can install NFC readers for their merchants, so that the latter could accept customer payments through NFC cards and NFC-tagged mobile devices. Customers, in their turn, can download NUSPAY application on their mobile phones for making payments to the merchant that has these NFC-readers installed. The service is free for customers, as all fees will be covered by financial institutions and merchants.
Currently NVAS is offered to e-commerce companies only. However, it will be ready for use by B&M retailers by June, 2015.
For more data on NFC access CardData®. For information and commentary on NFC visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on NFC are available exclusively through CardWeb.com.®