Nov 16, 2010

Scotiabank, RBC first to put Interac Flash in customers' wallets

TORONTO--Interac Association says Scotiabank and RBC will be the first banks to add Interac Flash, the new contactless enhancement of Interac Debit and Canada's first contactless debit payment option, to their customers' bank cards in summer 2011. Interac Flash gives cardholders the choice of paying for smaller value items faster than ever before by simply 'flashing' an Interac chip debit card at a reader that supports Interac Flash, rather than inserting the card and entering a PIN.  This increased speed also helps merchants improve customer throughput at point-of-sale by spending less time processing payments, particularly handling cash.

"We are extremely pleased that Scotiabank and RBC have committed to offering Interac Flash to their customers," said Mark O'Connell, President and CEO, Interac Association.  "With Interac Flash, we are putting Canada's first contactless debit solution in the hands of customers and bringing a new value proposition to market.  The decisions by Scotiabank and RBC represent strong endorsements of Interac Flash." 

Small value payments represent one of the largest growth areas in payments, particularly for debit.  Within this arena, consumer payment behaviour has been evolving with an ever-increasing preference for cashless transactions and faster purchase options.  This is consistent with statistics showing that an estimated $90 billion in cash payments are for purchases under $20.

"At Scotiabank, we are committed to providing our customers with innovative ways to simplify their banking," said Gillian Riley, Senior Vice President & Head, Retail Payments, Deposits and Lending, Scotiabank. "Interac Flash makes debit payment transactions even faster and more convenient, which simplifies our customers' everyday banking and shopping experiences."

"Canadians have always shown an interest in adopting new payment solutions," said Doug Collins, Head of Payments & Bank Services, RBC Royal Bank. "Simplifying day-to-day banking through introducing innovative products and services is a key priority for us and we are pleased to be bringing this new option to our clients."

This innovative new enhancement to Interac Debit allows cardholders to choose either the standard chip Interac Debit or the contactless Interac Flash feature of their bank card to make everyday purchases using funds withdrawn directly from their bank account.  Interac Flash builds on the security of global EMV^TM standards; existing chip debit infrastructure; strong consumer protections and other features unique to Interac Association; as well as leveraging the trusted Interac brand.  Cardholders are protected from unauthorized transactions under Interac's existing Zero Liability Policy and merchants continue to receive the benefits of secure and non-refutable transactions associated with PIN-based Interac Debit.

"Interac Flash is a welcome and needed addition to the Canadian retail marketplace," said Diane J. Brisebois, President  & CEO of Retail Council of Canada.  "Merchants will now be able to provide customers with a faster and more convenient check-out experience while reducing the costs of handling cash. Interac Flash is also an economical payment solution, providing a win-win for merchants and their customers across Canada."

Following a series of successful in-market Interac Flash trials that have taken place in Toronto, TD Merchant Services will be providing merchants with the choice of Interac Flash starting early in 2011.  "Merchants participating in the trial told us that Interac Flash is value-added innovation that they can rely on to help improve their business operations and customer experience," said Jeff van Duynhoven, President, TD Merchant Services.