news National Australia Bank (NAB) has launched a new payment service that lets customers use their mobile phone to make purchases, without the need to carry a physical card.
Called NAB Pay, and available as part of the bank’s mobile Internet banking app, the new service means customers with a compatible Android mobile device and a NAB Visa debit card can start making contactless payments via NFC effective immediately. The bank has said it plans to add support for more cards in future.
NAB Executive General Manager for Consumer Lending, Angus Gilfillan, said the development was driven by customers who increasingly want “simple and easy” digital payment solutions.
NAB also claims to be the first Australian bank to utilise the Visa Token Service in Australia, saying it will provide an extra layer of security for its customers.
Tokenisation replaces a customer’s credit card number with a unique digital ‘token’ that can be used for payments, without revealing sensitive account information.
“Tokenisation improves protection for customers because physical card details are never used in the payments process, reducing the risk of fraud,” Gilfillan said.
Last year, NAB announced a 10-year strategic partnership with Visa to collaborate on payments innovation and product development for customers.
“Our partnership with Visa is enabling us to significantly invest in our credit and debit card portfolio and act more quickly to deliver innovative solutions for our customers,” Gilfillan said.
“We have a number of exciting initiatives planned this year and look forward to extending the NAB Pay application to support NAB credit cards in coming months.”
To use NAB Pay, the customer’s phone must be ‘awake’ and unlocked. Then it is simply a matter of holding it to a card reader to complete the payment. NAB Pay is available wherever contactless payments are accepted.