Prepaid Mobile NFC Payments to be Introduced
Prepaid card provider InComm and digital security firm Gemalto plan to team up to provide NFC enabled prepaid cards in the near future. The partnership will allow prepaid cards to work through mobile technology to create a contactless payment solution, similar to Apple Pay.
The InComm Mobile Platform (IMP) will allow merchants and mobile wallet providers to easily switch to contactless payments with prepaid cards. By using Gemalto’s existing infrastructure, InComm is able to create a secure connection between a user’s prepaid card information and an NFC-enabled smartphone.
In short, consumers will be able to pay for items through their phones with their prepaid cards.
“The prepaid card market is one of the fastest growing non-cash payments markets with growth expected at an annual rate of 22% through 2017,” Sebastien Cano, President of North America at Gemalto, said in a statement. “In this booming market, we are working closely with InComm to provide bank-grade security during the mobile provisioning of payment card information. The combination of our TSH and InComm’s IMP is facilitating the transition of tangible prepaid to mobile payments.”
The goal is to make prepaid cards more secure, convenient and user-friendly. A recent study from Pew Charitable Trusts found reloadable card usage has increased by 50% from 2012 to 2014, showing a growing need for better prepaid card solutions. InComm and Gemalto have not confirmed an official date for their new card opportunities, but their innovations may be appealing to today’s cardholders.