The Last Word: Inside Capital One’s Mobile Wallet

Capital One’s slogan might soon change from “What’s in your wallet” to “What’s in your mobile wallet.”

This week, Capital One joined the rank of payments innovators with the launch of Capital One Wallet, which made it the first U.S. bank to enable contactless mobile payments in its mobile app.

Through the use of MasterCard Digital Enablement Service (MDES) and Visa Token Service (VTS) platforms, the mobile app is deigned to offer Capital One customers with Android phones a better, faster way to both bank and pay. The app uses NFC to transmit a secure payment token at the point of sale. The app also offers spending management tools, real-time notifications, instant rewards redemption options, and quick access to balance and transaction history.

To learn more about the Capital One Wallet, we had Brad Greene, VP, Visa Digital Solutions, give us the Scoop.

Q: This is one of the first bank apps that we’ve seen hit the market that can be used at the point of sale. What is the significance of this to the mobile payments ecosystem in your view?

A: Capital One is the first U.S. bank that is launching a mobile payment wallet to its customers, enabling them to conveniently and safely make payments at the point of sale, with their Capital One cards. This launch represents another milestone and a step forward for broader mobile payment adoption.

Q: CapOne has great appeal to Millennials – do you think that their app stands a greater chance for success given that demographic?

A: Millennials are big drivers of general innovation in today’s marketplace. As early technology adopters, they will most definitely help digital commerce become the norm in the United States.

Q: Do you think that bank apps have a greater potential to be sticker than “third party” wallets or retailer apps?

A: The more options consumer have, the better it is for the adoption of new ways to pay. Ultimately, consumers will drive this trend and it is up to them to decide what solution they are the most comfortable using. Visa’s role is to work with our existing and emerging partners to bring more choices to consumers.

Our focus remains the same it has always been – to help enable security, convenience and speed for consumers – so they can keep utilizing their Visa cards without skipping a beat. We are doing just that with the Visa Token Service, our technology that enhances mobile payments, including the Capital One Wallet. Capital One Visa card accounts become represented as unique tokens that do not feature consumers’ sensitive account information, such as a 16-digit account number. If compromised, the tokens are virtually useless to fraudsters.

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