The applied research project tries to answer questions like, what would be the most rational solution to implement contactless payment cards in Estonia, how to utilize a virtual bank card in a mobile phone (NFC-phone) and how a broad-based contactless ticketing system could be implemented in the public transport sector. The introduction of contactless payment systems will greatly increase the speed of electronic transactions, which in turn expands the circle of merchants who would be interested in cash free settlements. For example, the current study focuses on the application of contactless bankcards and NFC phones in the public transport sector, where a fast settlement process is a must.

 

The research must have an international dimension of compatibility, in other words the new solution should not only remain acute to the Estonian context. Research into contactless payment technologies has a number developments currently in progress around the world. For example, the City of London is running an ambitious project, where for next year's London Olympics a public transport contactless payment system will be implemented. The new system will allow passengers who are entering public transportation to pay for their rides by touching an NFC-chip based bank card or mobile phone onto a special payment terminal.

 

The project is run by a consortia consisting of Danske Bank A/S Estonian Branch (Sampo Bank), ELIKO Technology Competence Center, Estonian Mobile Telecom (EMT), Nordea Bank Plc Estonia Branch, SEB Bank, Swedbank and United Tickets.

 

The project will be completed in mid-2012 when the results will be disclosed on ELIKO Technology Competence Center’s website (www.eliko.ee).

 

NFC (Near Field Communication) is a technology that due to a special chip enables near field contactless communication for authentication and payment solutions. An NFC enabled bankcard is different from an ordinary bankcard only in the sense that the chip has some additional functionality. Today, more and more manufacturers are installing NFC chips into mobile phones, which allows to provide NFC technology based solutions also on mobile phones. In the future, we see that NFC technology, when implemented correctly, poses an opportunity to rid ourselves form different loyalty and bank cards that burden our wallets today.

 

The project is funded by the project partners and by the European Regional Development Fund through Enterprise Estonia’s Competence Center Program.