Purchase stuff with a sticker: Bank of Montreal launches Mobile PayPass Tag for mobile devices

The Bank of Montreal announced today it has launched its Mobile PayPass Tag, a technology that allows BMO personal credit card customers to make purchases through a sticker affixed to their mobile phone and receive an instant email verification of each transaction.

By making the PayPass technology available for use on mobile devices, consumers no longer need to carry cash or coin, or even a purse or wallet. For purchases under $50, no Personal Identification Number (PIN), swipe or signature is required.

Through MasterCard’s inControl platform, BMO’s Mobile PayPass Tag users can easily monitor their spending by opting to receive email notifications that report the merchant and exact location of each PayPass purchase they make with their tag. The tag and email notification services are free to BMO MasterCard cardholders.

“We know that Canadians’ use of cash for smaller-value purchases is based on their desire to get in and out quickly when buying day-to-day items like gas, a quick lunch or a coffee,” said David Heatherly, VP, Payment Products, BMO Bank of Montreal. “PayPass is part of the movement toward a ‘cashless’ society. It’s faster and more convenient than cash or debit, which requires a swipe and PIN.”

“Canadians tell us they prefer simplified, electronic payment methods. Given the prevalence of smartphones, and a quickly expanding network of PayPass merchants, we think mobile PayPass is poised to take off as a popular payment method for Canadians,” said Scott Lapstra, Vice President, Emerging Payments, MasterCard Canada.

According to Mr. Lapstra, PayPass transactions account for nearly 10 per cent of all MasterCard credit card transactions in Canada, with the average PayPass transaction at just over $40 — and close to 50 per cent of those transactions being for purchases of $25 or less.