Baltic, Banks, Innovations, Investments, Latvia, Technology
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Wednesday, 24.04.2024, 19:35
Citadele launches contactless mobile payments in Latvia
Citadele’s mobile payment solution will rely on
additional security features to enable payments for amounts exceeding 10 Euro,
the current limit for contactless card transactions in Latvia.
Citadele’s mobile payment service is currently
operable in a beta testing programme, where it is being used
by Citadele employees and select client groups in order to
ensure that the mobile payment solution is secure, convenient, and usable at
different card terminal models in Latvia and abroad. The beta testing programme
is the final step before offering mobile payment solutions to the wider society
which is estimated to occur this summer. Citadele is planning on introducing
mobile payments in Lithuania and Estonia in the second half of 2017.
“We have entered a new era of payments - from now on, paying
in a shop will be as easy as holding your mobile phone near the card terminal.
Phones have become central to our lives - we use them for photography, filming,
internet browsing and a variety of apps. We will now also be able to use them
to pay by simply tapping the screen. Just as we have become used to paying with
bank cards, within a few years we will also see mobile phone payments as a
natural part of our everyday lives; I expect that they will gradually replace
the payments we are used to making with card or cash. Mobile payments are
simple and safe, and after trying out contactless mobile phone payments for a
few months, I can conclude that it is more convenient and faster than finding
my wallet and pulling out my payment card,” said Citadele Bank member of the board Kaspars Cikmačs.
Initially, mobile phone payments will be available on the
Android operating system (Samsung, HTC,
Huawei, etc.); this comprises roughly 80% of mobile phone users in Latvia. Citadele will soon offer alternative
mobile payment solutions for users of other mobile operating systems: bracelets
and stickers with near-field communication (NFC) technology. Currently,
contactless payments can be used at more than 8,000 establishments in Latvia
where contactless payments are accepted; by 2020, all payment terminals in
Latvia will have contactless functionality.
“Mobile payments are swiftly gaining popularity thanks to
their ease and speed and are already available in most European countries. We
are delighted to make contactless mobile payments available in Latvia through
our partnership with Citadele and to offer people a modern, secure and fast
payment solution.” said Mats Taraldsson, Head of Digital Development at Mastercard
Nordics and Baltics.
Up until now in Latvia, non-cash transactions required the
insertion or placing of a payment card in or near the terminal. With mobile
payments, there is no requirement to carry a physical card. Mobile phone
payments will take place in accordance with the tap and go principle
popular worldwide.
In order to install the mobile payment service, customers
will need an Android OS smartphone (Samsung, HTC, Huawei, Vertu, LG, Sony,
etc.) and a Mastercard card. The phone will be linked to the card using
the Citadele app. Data transfer
between the phone and card terminal will occur using NFC technology, similar in
performance to contactless card payments.
Mobile payments solution will feature additional level of
security for contactless payments. In addition to transaction limits,
additional features such as requirement to lock the phone or confirm the
transaction with a four-digit code will protect customers’ money in the event
of the loss or theft of a mobile phone.
The mobile payment solution is an
original Citadele service which has been developed through the company’s
innovation programme; the service was created by Citadele’s card and mobile payment development, e-business, and IT
teams, in cooperation with Latvia’s IT company D8 Corporation. Citadele has already invested over 30,000 man
hours and 1 mln Euro in developing mobile payment services.
Mobile phone payments are the next
step in Citadele’s innovation
programme, the framework through which modern and convenient bank services are
developed and made available. In 2014, an e-talons was integrated into Citadele
payment cards for Riga public transport tickets. In 2015, a year and a half
earlier than other banks in the Baltics,
Citadele developed a virtual code calculator integrated into mobile phones
which allows for customer authentication for internet banking and payment
confirmation. In 2016 Citadele developed a new mobile app which also supports
mobile payments.
Citadele is the third
biggest bank in Latvia by number of clients. The Citadele Group is managed from Latvia, and its subsidiaries and
branches operate in Latvia, Lithuania, Estonia and Switzerland. Citadele ensures transactions and card
payments, loans, deposits, investments, asset management and leasing services,
as well as a range of exclusive and unique products. Citadele’s vision is to become the best financial services provider
in the Baltics for private customers and small and medium businesses.