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Canada Is Poised To Join The Mobile Payment Revolution

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By 2020 retailers will have completed a seismic shift, one that puts the consumer in charge. Retailers not prepared for a relationship with consumers that is much more individualized, much more experience-based, will struggle to compete.

Consumers have access to more information today than any other time in history, and with that knowledge comes buying power. Today I can research the lawnmower I need while in the dentist's waiting room and check out from the coffee shop after paying for my drink with a tap of an app.

My purchasing options span multiple devices and cross borders. The globalization of technology gives me, the consumer, immense power. And that's a good thing.

It reminds big companies to design shopping experiences that appeal to the individual, not to a mass group. And that paying for an item is part of the overall experience, not just a transaction.

In early March the MasterCard team spoke at Dx3, Canada's largest digital conference and trade show. During the event we discussed how as technology options open up a world of possibility for us to make our lives easier and more seamless, shopping and paying becomes part of that equation.

Today you might marvel at ordering a pizza with a few clicks on your phone, but soon it'll be even more customized, with your connected car offering you intuitive ordering options as you zip home after a long day of work.

And that lawnmower I mentioned? Soon you'll test it out in store after researching online, pay for the mower in the aisle using your phone and have it shipped directly to your home. Which leaves you more time to take the kids -- bored of shopping already -- out for ice cream.

Companies like ours are investing in technology to make these things possible, and all with the purpose of making your life simpler.

Canadians have a lot to look forward to when it comes to the future of shopping, and it starts with mobile payments, which are poised to dominate the shopping experience. Many different technologies are required to bring mobile payments to life.

It starts with your phone, of course. And then your bank and the banking products you use -- those have to be added into your phone's wallet. And finally, the technology that allows you to tap your phone, just as you tap your card today.

Canada sits high on a global list of countries ready to make the shift because this country has quickly advanced all those requirements. Ensuring the payment made on your phone is as safe as the card you use today is absolutely key. New security measures developed just for mobile payments keep your payment information secure.

New technology means we can truly make any device a commerce device. Once we add payment card credentials to a mobile wallet or a connected device, these items become your credit card, but in a new form.

The payment token is what makes a connected fridge able to order and pay for the milk it notices you're out of. And what makes it possible to wear a dress that pays for ice cream, or a watch that you tap at the grocery store to pay.

With tokenized payments on your smartphone, you'll be able to do things we've not yet experienced. For instance, I'm a cyclist. Imagine what might happen when my bike computer that tracks my bike use comes tied to an account with my MasterCard. After four months, I get a notification to my phone letting me know that I've ridden 3,000 kilometres and it's about time to order new tires. I click "yes" and my new tires are shipped to my home.

Next I get a notification that asks whether I want my tire company to send me new shoes every 3,000 kilometres without me having to think about it. I click "yes" and all of a sudden one of my hobbies becomes that much easier to manage. This is not a far-off dream, but the way retail will soon operate.

I'm excited about the future of retail and the role MasterCard is playing to make payments safe, secure and convenient. And I know we've done our job when the payment is the most invisible part of your day.

Jason Davies is responsible for developing the technology platforms changing the way that Canadians pay in-store and online. At MasterCard, Jason is responsible for developing emerging payment products and strategies to show leadership in payment solution convergence.

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