05/14/2012 03:17 EDT | Updated 05/14/2012 03:18 EDT

Mobile Payment In Canada: Banks Agree To Guidelines For Using Smartphones As Wallets


MONTREAL -- Canada's financial institutions say they've developed voluntary guidelines for mobile payments that will work with technology already in place.

The Canadian Bankers Association says the guidelines are designed to work with the same security standards used by chip-enabled credit and debit cards and using the same hardware employed for non-touch cards.

The guidelines were developed by Canada's major banks and credit unions, although analysts say using smartphones as surrogate wallets to pay for purchases is still a few years off.

Telecom analyst Iain Grant of the SeaBoard Group says smartphones first need to be equipped with what's called Near Field Communication, a technology that allows consumers to tap or swipe their phones against terminals to pay for goods.

Grant says that in five years all smartphones are expected to be equipped with this technology.

Also on HuffPost

Photo gallery World's Top Countries For Social Media See Gallery