NAB launches mobile payments service

NAB is the latest bank to unveil a mobile payments service, launching an offering that allows consumers to use their Android smartphone to make purchases without the need for a physical card.

NAB Pay – available as part of the NAB Mobile Internet Banking app – is available to customers with a Android 4.4 (KitKat) mobile device with built-in NFC and a NAB Visa debit card.

NAB said it is the first Australian bank to use the Visa Token Service in Australia. This service replaces a customer’s credit card number with a unique digital token that can be used for digital payments without revealing sensitive information.

Angus Gilfillan, executive GM for consumer lending at NAB, said in a statement that tokenisation improves protection for customers because physical credit card details are never used in the payments process, reducing the risk of fraud.

Last year, NAB announced a 10-year strategic partnership with Visa to collaborate on payments innovation and product development.

NAB Pay is an alternative to Android Pay, which Google last year said it would bring to Australia in the first half of 2016.

NAB is absent from the list of banks Google is working with to bring the product to Australia. These banks include ANZ, Westpac, Bank of Melbourne, Bank of South Australia, Bendigo Bank, Cuscal, ING Direct, Macquarie Bank, and St.George.

Since 2014, several banks last year launched a range of mobile payment services.

Commonwealth Bank made contactless payments available on Android smartphones – with near-field communications and KitKat (4.4) or later – in March 2015. The bank offers PayTag stickers that users can attach to their smartphones for other devices, including the Apple iPhone.

In 2014, Westpac also partnered with Visa to roll out a mobile payments service using NFC chips embedded in Android smartphones. The service also supports the Samsung Galaxy S5, S4, and Note 3.

Customers store all their Westpac debit and Visa, MasterCard and American Express cards in their existing Westpac banking app.

ANZ launched its mobile wallet offering in 2015 following a trial in October 2012. The mobile wallet uses NFC technology to provide a contactless mobile phone payments system.

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