Customers of Dortmunder Volksbank will now be able to use a virtual credit card integrated in their smartphones to make payments in shops that accept MasterCard PayPass thanks to a TSM (Trusted Service Manager) service operated by technology group Giesecke & Devrient in cooperation with DG VERLAG.
As a systems integrator and partner of cooperative banks as well as other institutions, DG VERLAG uses the TSM service to install and personalize the ClassicCard Mobile credit card on customers smartphones via a secure wireless connection, storing the card in a secure element on the SIM card. This represents the next innovative step in mobile payments for DG VERLAG, following on from the dual interface credit card and the paySticker.
Customers will now make payments using the credit card integrated in their smartphones and located in the digital O2Wallet. All they need to do is hold the device up to the payment terminal. For payments of more than 25, customers must also enter a PIN code to authorize the transaction.
The ClassicCard Mobile integrated in their smartphones allows customers to make payments just as securely as with other chip-based credit cards. Acceptance of this product among Dortmunder Volksbanks customers will be monitored closely to help DG VERLAG decide whether to roll it out to other cooperative banks.
The MasterCard PayPass dual-interface credit card was developed as the first contactless credit card. The paySticker, a small contactless credit card that can be affixed to a handset, was a stepping stone on the road toward mobile payment with phones. Now, we have taken the next innovative step and are providing a virtual credit card integrated in the smartphone, explains Franz-J. Köllner, member of the executive board at the Deutscher Genossenschafts-Verlag eG.
The order and delivery process for the ClassicCard Mobile complies with all security guidelines laid down for card products a success that owes a lot to our collaboration with G&D, which went beyond the TSM service itself.