ABN AMRO is taking the next step in testing new wearables as a payment method with 500 of its clients. After prior successful internal tests in 2017, clients can now experience what it's like to make contactless payments with a ring, watch, bracelet or keyring. ABN AMRO is the first bank to enable worldwide payment with a wearable that's linked to a current account. Sign-ups are open for clients to participate in a four-month pilot. In exchange for providing the wearables, the bank requests feedback through an app, so the client experience can be continuously optimised while the pilot is ongoing. For more information see the IDTechEx report on Wearable Technology 2018-2028.
As Yvonne Duits, ABN AMRO Product Owner Payments, explains, the bank is exploring all sorts of inventive payment methods. Yvonne: "As much as 50 percent of all payments in the Netherlands are contactless. But the rise of contactless payment doesn't stop at bank cards and mobile phones. More and more products have payment through Near Field Communication (NFC) enabled, so naturally we're eager to test this method with our clients. The current project involves a range of wearables. We care about making things convenient for consumers and offering everyone a payment method that suits their preferences."
ABN Amro's website features products and links to the webshops where clients can buy wearables that come with Mastercard-certified payment chips. Their wearable product will be delivered to their home and, once activated via internet banking, can be used for contactless payment immediately.
"Paying by wearable is no different from contactless payment by card: Just hold the wearable near the point of sale and enter a PIN for purchases in excess of 25 euros. ABN Amro observes a limit of 250 euros a day that clients can spend with their wearables plus PIN — the first bank in the world to support higher-amount payments for these types of wearable."
"Garmin smart watches and soon also Fitbit trackers work a little differently for payments," the bank adds. "Every 24 hours users are to select a PIN that they enter into their smart watch or tracker, and, if they want to make payment, they elect the wallet function before holding their smart watch or tracker to the point of sale."
"Their responses have been hugely favourable," ABN Amro says. "No less than 80% of test users preferred wearables to a regular bank card."
Source and top image: ABN AMRO
Learn more at the next leading event on the topic: Business and Technology Insight Forum. Boston, June 2019 on 4 - 6 Jun 2019 at Boston, USA hosted by IDTechEx.