ABN AMRO is launching contactless payment by wearable for all its retail customers. „It is the first bank in the world to offer wearables enabling their users to pay higher amounts at a point-of-sale and using a PIN.”, according to the press release. Customers can buy their wearables and link them to their current accounts, thus facilitating contactless payments.
ABN AMRO’s website features products and links to the webshops where clients can buy wearables that come with Mastercard-certified payment chips. Their wearable product will be delivered to their home and, once activated via Internet Banking, can be used for contactless payment immediately.
Paying by wearable is no different from contactless payment by card: just hold the wearable near the point-of-sale and enter a PIN for purchases in excess of 25 euros. ABN AMRO observes a limit of 250 euros a day that clients can spend with their wearables plus PIN – the first bank in the world to support higher-amount payments for these types of wearable.
In the past 12 months, 500 ABN AMRO clients have experimented with these wearables and their responses have been hugely favourable: no less than 80% of test users preferred wearables to a regular bank card.
„We continuously work on all kinds of innovative payment methods,” says ABN AMRO’s Yvonne Duits. „Last year, we embarked on a joint pilot with partners Mastercard and DigiSEq. The 500 clients involved thought very highly of this payment method, reporting how good it was not always to have to bring their debit cards when going out or taking part in sports. Just use your ring to pay the bill and then prompt your friends to repay you by sending them a Tikkie reminder. Very useful indeed!”
Payment by wearable will only be made available to ABN AMRO’s retail clients. These wearables are being sold by companies that have placed Mastercard-certified chips in their products.
Garmin smart watches and soon also Fitbit trackers work a little differently for payments: every 24 hours users are to select a PIN that they enter into their smart watch or tracker, and, if they want to make payment, they elect the wallet function before holding their smart watch or tracker to the point-of-sale.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”