19. 07. 11. - 16:00

Raiffeisen to launch NFC

A leading bank plans to introduce near field communication (NFC) in Austria.

Raiffeisen Bank International (RBI) is currently testing the service on a low scale. The bank explained today (Tues) staff were paying their meals at the canteen in its Viennese headquarters using NFC credit cards. If the system continues to function faultlessly, RBI will expand it by allowing employees to pay at nearby supermarkets using the special cards.

NFC has been in operation in countries all over the world for some years. However, the model is not in use in Austria yet. A special chip in credit cards allows holders to pay without entering PIN codes or sign a form. All they have to do is hold the card close to a small checkpoint at tills and cash desks. The system bears resemblance to quick access ski passes which have been used in the Austrian Alps for some time.

RBI – which handles the international operations of Raiffeisenzentralbank (RZB) – said it planned to provide RZB customers with NFC-ready cards from next month. The cards will be limited to payments of 25 Euros for security reasons. RBI promised that customers would not have to pay more than 21 Euros a year – the average annual charge for regular credit cards – for the NFC versions.

RBI cooperates with credit card provider Mastercard about NFC. The bank said the system could revolutionise paying with credit cards in Austria.

RZB is Austria’s biggest private employer due to its participation in various companies such as agricultural firms and publishing houses. RBI is one of the biggest investors in Eastern Europe (EE). The bank forked out 490 million Euros for a majority share in Polish financial institute Polbank in February. Rival Bank Austria (BA) was also interested in acquiring Polbank.