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Coles claims ‘global retail first’ with mobile payment launch

ColesColes has claimed to have developed a “retail first in mobile technology” which allows customers to pay for their shopping through their mobile phone while collecting loyalty points at the same time.

The supermarket giant said the launch of Mobile Wallet introduces an “entirely new way to pay” for the Australian public, with its combination of credit card and loyalty scheme making it a “global first”.

The payment system allows holders of the Coles MasterCard to pay for goods up to a value of $100 without using plastic. Transactions over $100 will require a credit card.

The system integrates the Coles Pay Tag, a sticker placed on the back of mobile phones, with an app that is available for iPhone and Android. The Pay Tag, which has been the subject of a two-phase trial since February 2013, is linked to the payment details of their credit card and Flybuys account.

The first trial was with 50 tags and the second with 5,000.

Coles general manager of financial services Richard Wormald said 77 per cent of users in the pilot program found the system more convenient than using their traditional credit card.

“We understand that Coles customers are doing even more from their mobile devices whether that be surfing for recipes or managing their finances,” he said. “The Mobile Wallet will provide functionality, a seamless user experience and instant rewards, unlike any other credit card in the market.”

It will put “customers in control of their spending and introduces Australians to an entirely new way to pay”, he added.

In addition to being able to pay for shopping, the Mobile Wallet provides access to a customers’ account balance, credit and transaction history and Flybuys account.

Coles said the Pay Tag offers the same protection against fraud as the Coles MasterCard. The in-built chip also protects against personal details being copied while the Tag can be turned off.

MasterCard Australia senior vice president and country manager Andrew Cartwright said: “With one in two transactions below $100 now made with contactless technology, Australia continues to lead the way in payments globally.

“The Coles Mobile Wallet follows the success of the MasterCard’s PasPass technology and is testament to the growing appetite of Australians for fast, simple and secure payment methods.”

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