The $10 billion, Langley, British Columbia, Canada-based First West Credit Union has introduced Dashband, billed as the “first wearable device in North America using Visa payWave.” The wristband enables mobile, contactless payments.
Using Visa's payWave, a contactless payment technology, the Dashband eliminates the need to use cards, signatures or PIN numbers for purchases. To make a purchase, the band must be placed near or “tapped” on a contactless payment terminal. The credit union's online banking system provides those options.
First West CU unveiled Dashband as a limited release, as it is currently exploring ways to bring innovative banking solutions to its membership and the marketplace.
“Introducing new technology is one of the ways we can create value for members,” Bryan Mavrow, senior vice president of marketing at First West CU, said. “Wearable payment accessories is a rapidly emerging area that pairs well with our commitment to making everyday banking simpler.”
Doug Ebner, the credit union's lead innovation architect, sees the band as being ahead of the curve of consumer demand.
“We've been tracking the tap-and-go payment trend from the start, and it's clear that contactless payment is becoming an expectation of consumers,” he said. “For us, it's an opportunity to create more convenience and ease for our members when it comes to payments.”
Wearable technology started coming into fashion with fitness bands. But Ebner and his colleagues saw a broader potential when the trend first began. The team envisioned the band being a perfect fit for runners, hikers, busy moms and their tweens, time-challenged commuters,] and even those who struggle with point-of-sale PIN pads.
“We're now at the point where wearable technology is evolving into experiments with multi-purpose accessories like Apple's watch, which is tethered to your iPhone,” Ebner explained. “But we believe there's a need for a simpler, more straightforward payment accessory that meets the needs of busy people everywhere – and for which the only requirement is a bank account.”
He added, “Our commitment to innovation and doing things differently to create value means we need to seize opportunities quickly. We're already looking down the road and asking, 'What's next?'”
A special computer chip embedded in band with Visa payWave employs the technology for sending payment information to a secure reader at the point of sale. The chip requires close proximity (within one to two inches) to the secure reader, and must be correctly oriented to be processed. After waving the band, the reader lights up and beeps to confirm receipt and processing of the transaction.
Another company taking advantage of wearable technology is the Austin, Texas-based mobile and Internet banking provider Malauzai Software, which in April announced the launch of its new SmartwearApp.
Malauzai is one of only a few U.S. financial organizations that has developed a banking app for the Apple Watch. The SmartwearApp is an extension of the watch's existing mobile banking application. Among the financial institutions launching the app were the $557 million Greater Texas Federal Credit Union in Austin; Aggieland Credit Union, a division of Greater Texas Federal Credit Union; and the $257 million Alabama Teachers Credit Union in Gadsden, Ala.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
