CIBC partnered with a major wireless carrier to give customers the ability to make payments with their smartphones.
CIBC and Telus announced the launch of a mobile payment app for smartphones that run on the Telus network for credit card purchases such as gas or groceries with a limit of $50.
CIBC also partnered with Rogers to offer credit card holder mobile payments with smartphones at tap and pay terminals.
Todd Roberts, senior vice-president of payments strategy and innovation at CIBC said in the next two years, by and large, you will have every bank and every major telco providing the service to clients.
When this becomes common like ATMs and telephone banking, this will be treated as part of everyday life.
Smartphones need to be enabled with the technology that enables credit card purchases and brings all wireless carriers on board.
CIBC would also partner with Bell. Roberts said, it is our desire to make sure that all of our clients have our (credit) cards available for use on the network that they choose, so it is highly logical that we would enable Bell.
The mobile payments is for Visa and MasterCards, which will increase to $100 as consumers and merchants get more comfortable with the idea.
Debit transactions will also be coming to CIBC's mobile payments.
Merchants such as Petro Canada, Tim Hortons and Loblaws are businesses that are accepting mobile payments.
Emerging countries are further ahead than Canada because they don't have traditional infrastructure for banking.
Mobile payments will become common in Canada, as it is being driven by younger consumers.
Royal Bank of Canada announced a digital wallet that enables mobile clients to buy goods and services with their RBC Interac Debit or Visa credit cards using models of Android smartphones running on Bell's wireless network.
BMO was the first bank to launch the mobile payment in 2011 as it teamed up with MasterCard. BMO customers stick a mobile tag on the back of their smartphones and then tap the tag on the PayPass reader to pay for their purchases.
TD Bank and PC Financial have announced a mobile wallet to combine multiple payment and loyalty programs for consumers. It will allow consumers to pay, earn and redeem loyalty points in a single tap using their smartphones and is expected to launch this spring.
Scotiabank hasn't announced any plans for mobile payments yet, but the concept is under consideration.
CIBC's mobile banking app will work on Samsung Galaxy S4, Galaxy SIII, Galaxy Note II and HTC One on the Telus network. The app will be available later for BlackBerry Z10, BlackBerry Q10 and BlackBerry Bold 9900 on Telus.