Cardis wins Contactless & Mobile Award
Cardis aggregation technology is the first to reduce the cost of processing low value payments to a fraction of current industry rates – good news for all parties handling everyday small payments
Cardis International has won the Competitive Advantage category at the Contactless & Mobile Awards 2013. The awards were announced last night (Tuesday, April 30) at the end of the 2013 Contactless Intelligence Spring Conference in London.
The award recognises Cardis for its ground-breaking aggregation technology that reduces the cost of handling everyday payments like a cup of coffee, sandwich or bus ticket to a fraction of the average current transaction fee. Increasingly consumers are keen to use their contactless cards and NFC-enabled smartphones to make small purchases, opening up vast opportunities from cash replacement and efficiencies.
“We are absolutely delighted with the award,” says Cardis CEO Nebo Djurdjevic. “Our aim is to remove the cost barriers that hamper the growth of electronically accepting low value payments and offer a solution that benefits every single party that deals with a small transaction. The award confirms what we believe – we have the ingredient that completely overhauls the economics for low value payments, typically those below the equivalent of $25/€20/£15.”
The Cardis aggregation technology is the first of its kind designed to reduce the cost of processing small payments to levels not yet seen in the market. “The technology enables several consumer transactions made at different retailers to be handled with only one aggregate transaction processed through the payment network. By spreading the cost of processing of this single aggregate transaction over a series of low value payments, the overall cost is dramatically reduced allowing every participant in the transaction value chain to benefit” says Cardis CTO Milos Dunjic.
“Raiffeisen Bank International’s CardMobile product – which combines Visa Europe’s V PAY debit product and contactless/mobile payment solution with Cardis’ low value payment technology – launched in Austria last year,” explains Mr Djurdjevic.
“Retailers there are pleased with the cost savings they’re seeing with CardMobile’s LVP solution. For average transaction amounts between €4 and €10, the retailers benefit from payment handling costs that are 70% to 40% lower in comparison to current average merchant pricing on debit cards in Austria. This creates the right economic conditions for issuers and acquirers to roll out contactless and mobile NFC payments, without concerns from merchants about transaction costs.”
Cardis is currently active in a number of European markets around the adoption of its solution for contactless and/or mobile payments within existing card scheme products. It is also working on a range of opportunities in the US where chip migration and innovative mobile payment environments require particularly flexible solutions.
As part of its US activities, Cardis has recently joined the EMV Migration Forum to contribute to the industry’s efforts to accelerate the implementation of global chip standards in this market. The business opportunities in the US include the traditional four party card models as well as the vast range of emerging business models that are driven by increasingly fierce competition in the payment sector.