Rabobank Enters Mobile Payments Space

Rabobank, based in the Netherlands, has rolled out a mobile wallet on the embedded Secure Element of select Samsung smartphones. As of now, Dutch consumers can use their smartphones to pay for shopping, check balances, store loyalty cards and redeem digital vouchers via NFC. This would work across shops that are equipped with contactless terminals. By using the Samsung SE, Rabobank is able to bypass SIM cards, issued by telecom companies, altogether.

Contactless payments are available at around 66,000 retailer terminals in the Netherlands. Rabobank claims to have 150,000 customers who have downloaded its banking app on the Samsung devices. The commercial launch of the wallet follows an NFC payments pilot in a Dutch city, called Leiden, conducted by Rabobank in association with ING and ABN Amro.

Some 1000 consumers and 180 businesses took part in the pilot program. The pilot program witnessed 2000 NFC payments per week were made with a total value of about €20,000. Rabobank, which is using technology from the company Giesecke & Devrient to secure transactions and upload new applications to consumer phones, is the only bank to so far that is going ahead with a full-scale roll out.

The mobile wallet app, called Rabo Wallet, allows users to pay with a smartphone, exactly like with a debit card, straight from your bank account. Customers want more and more applications on their mobile phone. Mobile banking has already become extremely popular in recent years and pay with the mobile phone is then a logical progression. With the Rabo Wallet Rabobank is taking the first step in a new way to pay. It is your wallet in your phone. Jeroen Verrijdt, director of Pay and Save at Rabobank, cited about the app to NL Times.

The Rabo Wallet app is currently available only for two Samsung smart phones – Samsung Galaxy S4 and Samsung Note 3.