U.S. Bank Tests Mobile Payments with iPhone

Jan. 14, 2013

While the shine may be coming off NFC-based mobile payments, a new pilot being conducted by one of the largest financial institutions in the U.S. could reinvigorate proponents of the contactless technology. U.S. Bank said it is testing NFC with its Visa cardholders in Portland, Ore. and Salt Lake City by providing new customers with iPhones an NFC-equipped case to make contactless purchases at participating retailers in the two cities.

The iPhone case being distributed to new U.S. Bank FlexPerks Visa customers was developed by Richardson, Texas-based DeviceFidelity. Minneapolis-based U.S. Bank has tested DeviceFidelity’s iPhone case technology—which includes a secure element—but has never released results of those tests. But, the bank has “incorporated all of the feedback we have received from prior pilots and our customer research into this latest offering,” according to Dominic Venturo, chief innovation officer for U.S. Bank Payment Services.

Salt Lake City, one of the initial test sites for the U.S. Bank technology is also one of the pilot locations for competitor Isis, the mobile payments venture backed by major U.S. wireless carriers AT&T Mobility, T-Mobile USA and Verizon Wireless