OREANDA-NEWS. June 21, 2013. Alfa-Bank, the major private bank of Russia, Beeline (VimpelCom Ltd.), communication service provider, and MasterCard International Payment System (NYSE: MA) have announced the launch of the payment service based on NFC technology using Beeline SIM cards with innovative technology for mobile payment through Mobile MasterCard PayPass.

The solution for mobile payments provides for installation of the special banking application on SIM cards and enables Alfa-Bank clients to make purchases and to pay for services instantly by tapping their NFC-enabled phones with Mobile MasterCard PayPass technologies to PayPass reader at a cash desk. Transactions are processed by Alfa-Bank processing centre based on SmartVista Suite, the advanced software solutions.

Currently, this service is available to the pilot group of Alfa-Bank clients. A wide range of models of mobile phones and smart phones supporting SIM centric NFC technology are suitable for new SIM card installation. In particular, during project testing HTC One line smart phones were used, those initially enabled for such simple but hi-tech mobile payment service.

Funds will be debited to the client’s bank account, which the bank card number recorded on the SIM card is linked to. The SIM-card is as secure as the bank card with built-in microprocessor -CHIP.

Due to the bank application installed on the SIM card, all advantages of services rendered by both the mobile operator and the Bank persist. Using the Mobile MasterCard PayPass payment technology one can make "one-touch" payments at sales outlets by tapping a mobile phone to PayPass terminal. It is convenient, quick, and safe to pay for purchases by the contactless method. Any payment up to RUB1,000 does not require PIN code entering or slip signing, in case this amount is exceeded, the client has to confirm payment by entering a PIN code. By staying always connected with Beeline mobile operator, the bank clients can quickly and safely pay with their card at any sales outlets supporting MasterCard PayPass, the contactless payment method.

"We believe in the future of contactless payments, therefore we develop and test various hi-tech products and services. Today, we have launched the product prototype using NFC technology together with our partners under one of innovative projects," says Alexey Korovin, the head of Alfa-Bank Retail Business Block. "We consider that the main thing is our clients’ feedback and experience in making payments, and the above technology makes them fast and enjoyable."
"We believe NFC is a perspective technology and we hope that in the future it will become widespread. It is important to note that it is developed by the companies from different industries in close collaboration. We consider that the SIM-centric NFC technology, on which basis the payment service is implemented together with Alfa-Bank and MasterCard, is the most convenient for users and optimum for all companies engaged in forming ecosystem of NFC of services", commented Victor Markelov, the Director for Products and Business Development of VimpelCom Ltd.

"MasterCard PayPass technology has become a real revolution in non-cash payment solutions as currently the mobile phone, for instance, has become a tool of non-cash payments along with a bank card. In the present-day dynamical world, the payment banking technologies are expanding to absolutely new formats, and new players are entering the industry. We are happy that the project of Alfa-Bank and Beeline has been launched in the Russian market and now Russians have one more opportunity to take advantage of non-cash payment — in Russia and in any other countries to shop safely, quickly and conveniently", said Andrey Makarov, the Director for MasterCard market development in Russia.

"We are very pleased to render support to Alfa-Bank in provision of the advanced solutions capable of improving the quality of its clients’ life. The project implementation together with MasterCard and Beeline is an essential step towards building complex interaction between the telecommunications and banking sectors allowing to create the maximum comfortable access to all financial services regardless of the time of day, place and communication method. Our cooperation with an Alfa-Bank is aimed at developing the cashless payment system and creating maximum convenient, innovative and safe products and services", noted Vasiliy Grigoryev, General Director of BPC Banking Technologies.

Such SIM cards have been developed and produced in cooperation with Oberthur Technologies, the leading world developer of smartcard-based NFC solutions.