Fiserv tests PIN mobile payments with no PIN pad

Fiserv completed a PIN on Mobile (PoM) transaction using only an app on a consumer grade handset, and plans to pilot the technology in Europe and Asia.

Fiserv used technology from First Data, which is now part of Fiserv following 2019's merger, and Visa, Samsung and PayCore. Merchants use their own consumer-grade mobile devices to accept contactless payments facilitated by secure PIN entry without any additional hardware, such as a dedicated PIN pad. Fiserv will test the system in Poland, then other markets in Europe and Asia.

“The way people want to pay is changing. Contactless CHIP and PIN payments are common, yet over 23 million micro merchants in Europe alone may lack terminals to accept them. We’re making sure no merchant is left out and helping them do business in the cashless economy by turning the smartphone into a card acceptance device,” John Gibbons, executive vice president and head of EMEA at Fiserv, said in a press release.

The technology is available on select Samsung mobile devices, and uses the phone's embedded NFC function to accept contactless card payments on NFC-enabled phones and other devices such as wearables.

Visa approved the solution to authorize contactless PIN-based payments through its “Visa tap to phone” program. PayCore is providing the EMV software to facilitate transactions enabled through the Fiserv app.

PIN on Mobile removes an obstacle for card acceptance for remote merchants, such as plumbers, landscapers and couriers. These merchants could not facilitate a secure PIN entry on a consumer-grade mobile device. These merchants required a dedicated PIN entry device or maintain a separate terminal, creating an expensive obstacle.

Paycore hopes the technology will boost the use of smartphones and tablets as POS terminals in the market, since it enables card-present transactions of any amount to be carried out in a secure environment.