Canadian Banks Rushing To Offer Virtual Wallets

silentbrad writes with this quote from the Globe and Mail:"Canada's big banks are preparing to launch 'virtual wallets' as early as this fall that will allow consumers to digitally consolidate their credit and debit cards from any financial institution, and use them to make purchases online and through their cellphones at cash registers. It is being called the biggest change to the way consumers pay for goods in Canada in decades, and for the banks moving quickly into this space, the strategy is about keeping ownership of the vast and potentially lucrative stores of data that are involved in transactions. ... The majority of the banking sector is expected to follow suit in the next year or so, with each financial institution relying on the concept of 'aliases,' where a password lets consumers access their payment cards, but protects personal information from being passed to the merchant. ... Retailers can use the information contained in transactions, stripped of details that violate privacy laws, to tailor offerings or promotions to consumers. And the banks figure they can build a new business from that new world. Location data on phones can help neighborhood stores connect with customers in the area, while transaction data online can give insight into consumer habits and tastes."

Comments

It's all about selling customer data

[Anonymous Coward]

FTFA:

Retailers can use the information contained in transactions, stripped of details that violate privacy laws, to tailor offerings or promotions to consumers. And the banks figure they can build a new business from that new world. Location data on phones can help neighbourhood stores connect with customers in the area, while transaction data online can give insight into consumer habits and tastes.

The title of the article should read:

"Canadian banks rushing to offer your private buying history to the highest bidder"

Re:As I pat my virtual pocket to check

[Beardo the Bearded]

I've got one on my CC. It works great, I can just wave my wallet at the reader and I'm good to go. I don't have to touch the pen or pinpad that Typhoid Mary and Ebola Gary have been licking.

It's limited to $50 transactions.

The field is very short, approx 6".

It's my CC, so there's a buffer between it and my real money.

I'm an EE. An RF EE. They're fine. The machines aren't always set up to take them though, so it doesn't work everywhere.