National Australia Bank is looking at a commercial launch of contactless mobile payments after a three-month trial at Melbourne's Docklands "exceeded expectations" and indicated a strong consumer appetite for the technology.
During the trial, consumers downloaded the NAB Visa credit card software application to their Telstra SIM remotely, and then used their mobile phone to purchase goods and services by waving the handset over a participating merchant's Visa payWave enabled reader. The costs of purchases were charged back to their NAB Visa credit card account.
According to user feedback, 90% of trial participants were "very or extremely satisfied" with the contactless mobile phone payment system, while 95% said they were likely or extremely likely to use the technology in the future. More than three-quarters (78%) of participants said paying using a mobile phone was better than cash.
Feedback from the merchants that took part in the trial was also positive, with participants reporting contactless mobile phone payments as a quicker, more efficient and convenient way to serve customers.
Telstra enterprise & government group managing director David Thodey says convenience was the key appeal for participants: "Overwhelmingly the trial participants told us that they saw genuine value in the ability to make smaller transactions, such as for coffees and papers, with a wave of the phone rather than fumbling for change."
NAB regional general manager, consumer product solutions John Salamito adds: "Now we know that mobile payments can work successfully in a real environment, revealing a strong consumer and merchant demand for such services, we are looking at ways to launch this into the Australian market."
The contactless mobile payments trial was recently selected for inclusion in the Finextra Innovation Showcase, which recognises the most innovative global financial technology projects in the past 12 months.