SwissWallet is rolling out its first mobile payment solution for Android smartphones within the VisecaOne app. As with card payments, payment at the point of sale terminal takes place via a fast, secure NFC wireless connection, with straightforward fingerprint authentication. It is the first independent solution of its type in Switzerland, giving card issuers the option of augmenting their own apps with a standardized, certified mobile payment module.
The NFC technology scores highly with very rapid transfer rates and encrypted data exchange. Around 85,000 NFC payment terminals are installed at commercial establishments in Switzerland, and 40% of credit card transactions are already done on a contactless basis. As things move even further toward mobile payment via smartphones or wearables, the trend to contactless payment will accelerate. For customers it is easy, secure, and extremely fast. For banks and businesses, on the other hand, setting up and maintaining digital payment solutions entails substantial investment. This is precisely where SwissWallet comes in, developing mobile payment modules for the Swiss market on the basis of internationally recognized standards. Card issuers can efficiently integrate standardized and certified SwissWallet modules for credit and debit cards in their own apps. Unlike other card-based mobile payment solutions, the data remain completely within Switzerland and are subject to Swiss data protection law.
Mobile Payments with a Familiar App
Viseca Card Services SA is the first card issuer to integrate the SwissWallet module directly with its existing VisecaOne app. Viseca customers at Banque Cantonale de Fribourg and at Banque Cantonale du Jura were recently given the option of mobile payment. To pay they merely have to open the VisecaOne in the store, authenticate themselves with their fingerprint, and hold their Android smartphone to the terminal. It is no longer necessary to enter a PIN at the terminal. In the future it will be possible to pay smaller amounts under CHF 40 without any authentication at all by simply holding a smartphone to the PoS terminal.
Security above All Things
Contactless payment with a smartphone is particularly secure, meets the credit card issuers’ stringent requirements, and is permanently assessed by external certification companies. Only a token – no real credit card data – is stored in the SwissWallet module itself.
SwissWallet is an Aduno Group, Netcetera, and Swisscard joint venture that aims to introduce digital payment solutions in Switzerland. SwissWallet already operates Masterpass wallets for the cantonal banks, Migros Bank, Raiffeisen banks, Viseca, and Swisscard. More than 800,000 wallets are already set up on the platform for online payment with Masterpass.
SwissWallet Media Office
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The Aduno Group, Netcetera and Swisscard companies have founded a joint venture to develop and operate digital payment solutions. From mid-November SwissWallet can be used in online shops in cooperation with Masterpass, the digital payment solution from Mastercard. The solution runs on any device, on all tablets and smartphones. SwissWallet is being distributed by the card providers under their own name, the platform works in the background and can also be used by other payment card companies. The range of services is being constantly expanded, the launch of Mobile Payment, contactless payments using cell phones in stationary retail, is planned for the second half of 2016.
SwissWallet is a service from Swiss One Wallet AG. The two leading credit card companies, the Aduno Group and Swisscard, are behind the new company. In cooperation with the software company Netcetera, they are driving the digital transformation of credit cards and pooling all the important industry standards for digital payments on the SwissWallet platform. SwissWallet is seamlessly connected to card networks accepted worldwide and is operated on servers that are located within Switzerland. SwissWallet is a digital wallet where consumers can centrally store credit cards. Consumers manage and use their cards using one single login and therefore have secure and easy access to payment solutions accepted worldwide. Unlike international wallets the customer data remains with the respective card provider in Switzerland.
The first payment service with Masterpass
SwissWallet is permanently connected to Masterpass, the digital payment solution from Mastercard. Masterpass is open to credit cards from all card networks. Cards from Mastercard, Visa and American Express can already be placed in SwissWallet today and used for online shopping. Payment processes are carried out quickly and easily with Masterpass and consumers authenticate that they are the cardholder through a few very secure steps in the online shop. Masterpass can be used on any device and even runs on all tablets and smartphones. When shopping, only the login data is entered, the information for the transaction and delivery address is automatically sent to the merchant.
Standardized and extremely secure
Cardholders no longer have to store their details separately in a browser profile or with the online merchant, they are managed centrally by SwissWallet according to the payment card networks’ international security standards, which considerably reduces the risk of misuse. The card details are only accessible to the respective card issuer. The identification and authentication of wallet holders is secured by a two-factor process (for example a password combined with a separate security app) and coordinated to the individual card provider’s processes. Information, such as replacement cards or change in address are constantly updated on a system basis. With this solution it will be possible in future to generate payment data dynamically or temporarily ("tokenization"). As a result, SwissWallet is already prepared for payments with end devices such as watches or wearables, which have less security features compared to chip cards.
More security and less work for retail
Merchants receive solutions that they can quickly and seamlessly connect to existing checkout and payment systems. The centralized storage of card details also has numerous advantages for small online shops. They do not have to meet the high security requirements and continuously adapt to new requirements themselves, that is done for them by SwissWallet. The purchase is completed with just a few clicks, which is of course a major advantage with the increasing popularity of shopping on smartphones and tablets. All card details are always up-to-date and do not have to be entered while the customer is making a purchase. Overall the transaction process is being sped up considerably therefore minimizing the termination rate. The payment solution opens up access to the global market for Swiss merchants, customers can pay worldwide using the same standard.
Accepted worldwide in 250,000 online shops
Masterpass and the services from SwissWallet are being introduced step by step. Viseca Card Services, a subsidiary of the Aduno Group, is starting with selected cardholders in mid-November. Swisscard is offering the service to its customers from the first quarter of 2016. The Masterpass infrastructure has already been implemented at card acceptance companies and merchant acquisition has been running for several weeks. During the start-up phase the focus is primarily on major and well-known online merchants so that consumers can regularly use their digital wallet as quickly as possible. Cardholders, who have received access to the wallet from their contractual partner, can pay online all over the world using Masterpass. In Europe, the number of transactions is growing by 40% every month, Masterpass is currently already integrated into more than 250,000 online shops.
Continuous expansion with new services
The SwissWallet range of services is being continuously expanded. New wallet functions will be following by mid-2016. The launch of Mobile Payment, contactless payments using a NFC-compatible cell phone in stationary retail, as well as peer-to-peer payment functions, are planned for the second half of 2016.
Global standards are being established
The market for digital payment solutions is developing very dynamically and the boundaries between online and stationary retail are disappearing. The companies involved in SwissWallet are convinced that only technologies will establish themselves that are accepted by retail and consumers equally. The digital solutions from SwissWallet are based on tried and tested credit card advantages and a global network of acceptance points. So that global payment transactions are guaranteed across all card products and acceptance points, all the technical specifications are being regulated in a binding way by the payment card industry. SwissWallet is starting at this point. The Swiss company is providing an open platform that can also be used by other payment card companies. It is pooling payment systems accepted worldwide on one platform that is domiciled in Switzerland. Cardholders have their usual contact, who works according to Swiss law and data protection provisions and by being connected to industry standards merchants have security of investment and access to a global sales market.
About Swiss One Wallet AG
SwissWallet is a service from Swiss One Wallet AG. The Aduno Group, Netcetera and Swisscard are behind the company. The board of directors includes Andrej Vckovski (President), CEO of Netcetera Group AG, Marcel Bührer, CEO of Swisscard AECS GmbH, and Martin Huldi, CEO of the Aduno Group. The new company headquarters are in Zurich. You can find more information about Masterpass here.
SwissWallet Media Corner
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The presentation from Media Round Table is available to download here (German Version).