The Pulse electronic funds transfer network is partnering with Paydiant to provide a quick-response (QR) code-based mobile wallet that supports both point-of-sale purchases and ATM access. The platform uses existing POS systems, alleviating the need for merchants to buy new hardware, an issue that has negative implications for alternative Near Field Communication-based mobile wallets.
Pulse is owned by Discover Financial Services, and it serves some 6,100 U.S. financial institutions. Its mobile wallet is available on iPhone and Android devices.
From Mobile Commerce Daily:
Pulse’s new mobile wallet is meant to improve payment efficiency and enhance transaction experience for consumers at retailers and ATMs that accept Paydiant wallets. To achieve that goal, Paydiant uses a platform that can be quickly deployed on any payment terminaal by a financial institution, retailer or third-party service provider.
The Pulse mobile wallet will also let retailers provide point-of-sale offers and withdraw cash from an ATM. The Paydiant mobile wallet application works through a secure system that does not store any sensitive account information on the mobile device itself. Every transaction requires a two-factor authentication and tokenization. In order to pay or take out cash at an ATM, consumers simply capture a QR code with the camera on their smartphone.
Paydiant continues to gain traction as a mobile-wallet platform for financial institutions, including those looking to incorporate a point-of-sale functionality to their mobile-banking services. Pulse’s ties to thousands of banks will help propel such initiatives, and it could push NFC-based wallets even further behind those supported by QR codes. The ability to access cash with the wallet using QR codes at ATMs also is a compelling function and one many other wallets do not support but which financial institutions will find attractive.
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