JCB has inked a partnership agreement which allows Nets to use J/Speedy, JCB’s contactless technology, for Dankort payments with smart phones in Denmark.
When Nets launches Dankort on the mobile in autumn 2016 it will thus be based on an international, well-proven technology from JCB, an international payments scheme originating from Japan. JCB has many years of experience facilitating contactless mobile payments as Japan was among the first countries in the world to adopt mobile payments and make it a part of daily life. This also marks an important milestone for JCB as it aims to accelerate its mobile payment implementation globally using Host Card Emulation (HCE) technology.
Nets believes that in 2020 up to half of all payments at the point-of-sale in Denmark may be initialized from a smartphone and that there will be more than 3 million Dankort on mobile phones.
Paying contactless with the mobile will be very similar to the payment experience when using the contactless cards at the point-of-sale. The user just “tap and go” without any physical contact between phone and terminal. If the payment exceeds DKK 200 a passcode must be entered on the phone to complete the payment.
Dankort on the mobile phone can be accepted by all merchants accepting Dankort based on the current subscription model and the existing terminal infrastructure. Merchants who have already activated their terminal to accept contactless payments will only have to make small adjustments to their terminal set-up.
The number of terminals with contactless readers is steadily increasing. Right now 60% of all Dankort transactions are carried out using a contactless enabled terminal and over the coming years Nets expects that most of the terminals in Denmark will be able to accept contactless payments.
Dankort was originally established based on international scheme standards and international corporation has ever since been an important driver in the ongoing development of the Dankort. Therefore, the partnership with JCB is a natural next step for the Dankort. The core technology powering Dankort on the mobile includes state-of-the-art security through tokenization and strong cardmember protection. It will not be visible for cardmembers as they will pay in the same way as they do today with their contactless plastic cards.
As a result of the partnership agreement Nets will, with support from terminal vendors and integrators, gradually prepare Danish terminals to accept payments with Dankort via mobile phones. Once this is in place, JCB cardmembers can benefit from making J/Speedy contactless payments when visiting merchants in Denmark that accept JCB cards.
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