BlackBerry, EnStream reach deal on mobile payment system

BlackBerry (BBRY) has reached an agreement with EnStream, a joint venture between Canada's three biggest telecom companies — Bell (BCE), Rogers (RCI) and Telus (TU), to provide the infrastructure for a new mobile payment platform.

Under the three-year deal, EnStream will use BlackBerry infrastructure so banks and mobile operators can securely keep sensitive payment information on any smartphone able to use near field communication (NFC) tags.

NFC tags permit smartphones to communicate with other mobile devices or credit payment systems by tapping the two together.

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Comments (32)
  • bajbajbaj1
    , contributor
    Comments (4) | Send Message
    A 3 year deal? Didn't WSJ say BlackBerry would be dead in 3 years? ;-)
    13 Jun 2014, 03:35 AM Reply Like
  • Kastanes
    , contributor
    Comments (1287) | Send Message
    Precisely! If you believe what the media spews, you would be a fool.
    13 Jun 2014, 11:56 AM Reply Like
  • Ed Hood
    , contributor
    Comments (6) | Send Message
    Blackberry will be back with full force. Just be patient.
    13 Jun 2014, 04:12 AM Reply Like
    , contributor
    Comments (2709) | Send Message
    Awesome, John Chen continues to be hard at work.
    Looking forward to using this service. NFC is great. Love tapping for purchases.
    13 Jun 2014, 06:11 AM Reply Like
  • farmwersteve
    , contributor
    Comments (348) | Send Message
    This seems very positive.
    Service fees are the things that make banks so profitable.


    This is great news.
    13 Jun 2014, 06:17 AM Reply Like
  • fatt
    , contributor
    Comments (17) | Send Message
    WSJ who is WSJ it sounds familiar, Wrong Stock Judgment I guess
    13 Jun 2014, 06:31 AM Reply Like
  • User 509088
    , contributor
    Comments (1731) | Send Message
    Good luck to bb!


    Maybe this will stop the three major carriers from being hassled all the time by the federal government in Ottawa.
    13 Jun 2014, 06:59 AM Reply Like
  • gladtidings
    , contributor
    Comments (261) | Send Message
    In the present scheme of things, people carry the plastic cards. Not many people carry BB smartphones. So realistically speaking, unless Canadians increase adoption of BB as their smartphones of choice, any increase in revenue will be incremental.
    13 Jun 2014, 07:52 AM Reply Like
    , contributor
    Comments (2709) | Send Message


    You may have misunderstood the news. They are to run BlackBerry's secure infrastructure. This infrastructure can be used with all mobile devices regardless of make. In other words, a huge bonus for BlackBerry. iPhones have no NFC, because they are always behind. Only devices that support NFC can be used.


    And here in Toronto, there's quite a few BBOS and BB10 users all over the place.
    13 Jun 2014, 08:01 AM Reply Like
  • NBohrQM
    , contributor
    Comments (210) | Send Message
    Interesting how those who are bearish on BB can't see past the phone. Big mistake.
    13 Jun 2014, 08:35 AM Reply Like
  • Sguy565
    , contributor
    Comments (6) | Send Message
    Actually if you look up the numbers consumer purchases of blackberry are 3% higher than Iphone in canada, Although android is still leading the market
    13 Jun 2014, 11:44 AM Reply Like
  • sfinvestor
    , contributor
    Comments (2006) | Send Message


    I sure as hell hope you are not referecing Micheal Blair's artcicle.


    If you believe BBRY outsold Apple in Toronto or have 6% market share in North America, you are not fit to invest. Turn you money over to a manager or just buy an index fund.
    13 Jun 2014, 09:46 PM Reply Like
  • shubarua1
    , contributor
    Comments (1551) | Send Message
    In the 90 days since launching BBM Money in Indonesia, the service has an excess of 60,000 users registered, far less than targeted 200,000 in the same year. However, users were restricted only to Blackberry smartphone . Since then, BBM has gone multi-platform and service is made available to iPhone, Android, Microsoft Window (in June), and soon Nokia X. The firm has also introduced its BBM service for Android Gingerbread users.


    Blackberry Ltd has just announced a 3-yrs agreement with EnStream LP, a mobile payment joint venture Canadian wireless carriers to provide a seure platorm that supports transaction services between leading banks and customers. Under the agreement, EnStream will leverage Blackberry's proven and reliable infrastructure to enable financials institutions including Royal Bank of Canada, TD Bank Group, and CIBC and Desjandins.


    In order to provide the platform for EnStream, Blackberry needed to protect the sensitive data associated with financial transactions and meet the stringent requirements of the payment industry.


    To send money with the BBM Money Service you create a message, click on 'send fund' box and enter the amount to attach. Once done, the funds are transferred diretly to the reciepient's bank account. PyPal makes tons of cash by handling electronic payment for people. With PayPal (120 million subscriber) , you log in to PayPal, select the email address you wish to send money to, enter type of transactions and the amount to send. Once sent, assuming the person you sent to has PayPal acct., the reciepient needs to log in and accept payment. The money is frozen by PayPal for a period of time before it is allowed to transfer the funds to the repient's bank acct.


    According to Gartner, the total volume of transactions using mobile technology is expected to grow from $35 billion in 2012 to $173 billion in 2017, at a compound annual growth rate of 31%. This projections include merchandise purchases, ticketing and billing payments.


    BBM is growing platorm and gives Blackberry a chance to take the leadership position. It stands to reason that mobile payment should be integrated with mobile Instant Messaging, and BBM Money, a seperate app distributed via App World, seems to be the first service to achieve this. BBM is a messaging platform that offers collaboration tool such as BBM Groups, BBM voice, BBM channels and compete with services such as WhatsApp among others.
    14 Jun 2014, 08:12 PM Reply Like
  • englishstriker
    , contributor
    Comments (172) | Send Message
    Fantastic news. Looking like a bargain at $8.12 per share
    13 Jun 2014, 07:53 AM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1691) | Send Message
    I wonder why they did not choose any of these several other MDM solutions that are supposed to be threatening BBRY's dominance in this sector. According to several SA contributors Mobile Iron is going to bury BlackBerry. Not.


    This news means BBRY has e-banking banking deals in Indonesia and Canada. South Africa can't be far behind - they are well equipped to handle mobile money solutions.
    13 Jun 2014, 07:55 AM Reply Like
  • kr6420
    , contributor
    Comments (249) | Send Message
    Yes! This is great news! Chen is again proving his mettle. Will be interesting to see what the bears have to say.
    13 Jun 2014, 09:09 AM Reply Like
  • Toastypro
    , contributor
    Comments (524) | Send Message
    This is a clear indication that both MC and Visa endorsed Blackberry infrastructure and they do not trust open internet space. Enstream uses of Blackberry backbone so "financial institutions and mobile operators can securely store sensitive payment card details on any smartphone capable of using a near field communication (NFC) tag".


    Both credit companies, Verizon and other financial institutions stayed away from Google wallet and other payment systems due to competitive reasons. Currently, credit companies charge internet processing fees for each transaction, the processing fees collected over the internet is in billions and a good source of future income for Blackberry. Blackberry simply can provide payment system superhighway and collect some toll fees. This business is bigger than selling phones or other Blackberry solutions. Everyone including Apple is eyeing on this business, but Blackberry is there three steps of ahead of anyone with souped up encryptions providing secure end to end solutions.
    13 Jun 2014, 10:37 AM Reply Like
  • crwoods
    , contributor
    Comments (43) | Send Message
    You're absolutely correct. I didn't even think of the implications for credit card purchases too. Yes. This is the icing on the cake, with ice cream, whipped cream and whatever else you want topped on your dessert. Eventually, this should become huge revenues for BlackBerry and it's just the beginning (Canada seems to be the pilot).
    13 Jun 2014, 10:58 AM Reply Like
  • tobaccosand
    , contributor
    Comments (32) | Send Message
    I'm a little slow today after last night's Ontario election. I can see this is a great opportunity for BB. What does this mean to Visa, Mastercard and the banks that issue them? Is it a useful channel or is it competition?
    13 Jun 2014, 11:50 AM Reply Like
  • Toastypro
    , contributor
    Comments (524) | Send Message
    I think it will be a kind of symbiotic relationship which everyone benefits, Blackberry provides highway, MC, Visa and Banks share the bulk of credit transaction fees while Blackberry takes some toll fees. Merchant pays 2.5% to 4% credit transaction fee per each transaction. This is how the processing fees are broken down looking at the Merchant service monthly statement:


    1. Visa Kilobyte fee
    2. Mastercard Kilobyte fee
    3. Total Service
    4. MC Network Access Auth Fee
    5. MC Internet Auth Fee
    6. MC Wats Auth Fee
    7. Acquire Processor Fee Credit
    8. Acquire Processor Fee Debit/PP
    9. Visa Internet Auth Fee
    10. Visa Wats Auth Fee
    11. AMex Internet Auth Fee
    12. Discover Internet Auth Fee
    13. Visa International Service Fee
    14. Interchange Fee


    *** Everyone pays Internet Auth Fee which could roll into Blackberry future revenue. ***
    13 Jun 2014, 12:51 PM Reply Like
  • crwoods
    , contributor
    Comments (43) | Send Message
    This is amazing news, because there is absolutely no dependancy here on phone sales or mobile device management licensing fees or infrastructure or software which is dependant on the phone that is used.


    Basically, (for those of you who are not technologists or work in IT within financial institutions), all NFC retail transactions (just like when you tap your bank card for a purchase of gasoline or clothing items in a mall for example), those NFC transactions from electronic devices (like phones, any phones) will be processed from the retailer to the bank using BlackBerry's (the company not the device) back end secure infrastructure as the middleware between the retailer and the banks.


    So, for example a NOTE II device has an NFC chip which can be configured with your bank card of choice to do purchases and when you tap the retailers POS device with your NOTE II to purchase an item the transcation will pass-thru BlackBerry's infrastrcuture and then forwarded to the bank which will process it against your account, and pass-thru BlackBerry back to the retailer. BlackBerry's infrastructure will be used as the gateway for all the transactions between retailers and banks.


    This is amazing; think of it like the Interac of NFC. Great win for BlackBerry.
    13 Jun 2014, 10:46 AM Reply Like
    , contributor
    Comments (219) | Send Message
    @crwoods, It is my understanding that the actual transaction info won't be passing through blackberries network. When someone taps there nfc equipped phone, the phone passes security info on that it gets passed to it over the BlackBerry network. Probably when you start the process /program. The transaction details are now and will continue to be passed from the merchants terminal to their processor and from there to the financial institution .
    14 Jun 2014, 07:19 PM Reply Like
  • customize
    , contributor
    Comments (183) | Send Message
    Thanks crwoods for explaining the technology behind the scenes, its the software what's important not so much the hardware, but one would need the hardware in order to be a player.
    13 Jun 2014, 12:22 PM Reply Like
  • Kastanes
    , contributor
    Comments (1287) | Send Message
    I agree, great explanation. I did not realize how important this agreement was. Wall street in its lack of wisdom many not understand the relevance or is trying to downplay its importance.
    14 Jun 2014, 09:00 AM Reply Like
  • allstar0088
    , contributor
    Comments (408) | Send Message
    Very welcome news. Imagine Blackberry being able to profit from mobile payment transactions independent of the mobile device brand. Even better if rumors are confirmed that the iPhone6 will have NFC technology.

    14 Jun 2014, 09:48 AM Reply Like
  • Toastypro
    , contributor
    Comments (524) | Send Message
    Apple was working on BLE2.0 but they must put it on a back burner for now and has decided to follow where the payment technology is trending. It seems NFC is the payment system of choice for credit card companies since most phones support it and BBRY backbone complements the weakness of NFC security.


    Near Field Communication (NFC) Technology, Vulnerabilities and Principal Attack Schema:
    17 Jun 2014, 01:39 PM Reply Like
  • tiger8896
    , contributor
    Comments (740) | Send Message
    It's a start and the first deal that has potential scale. Past deals and alliances announced in the last few months have been minor and with small firms. This deal is with the biggest telecom companies in Canada, one caveat in the deal was how much Canadian "home cooking" was involved? Chen needs to make a big splash with a few American or Euro big hitters.
    14 Jun 2014, 04:15 PM Reply Like
  • jjtom
    , contributor
    Comments (443) | Send Message
    The most interesting Take on this news is that it's obvious that there are a lot of companies that realize Blackberry is here to stay or the would not have done this agreement. Remember they could of chosen someone else but they didn't WSJ can try to spin as much negative news as they want but it's obvious there are a lot of companies not listening to their biased tripe. Where is Marcap you know the guy who says Blackberry will be out of business by the end of next quarter? Do you hace anything to contribute to this latest news?
    14 Jun 2014, 05:14 PM Reply Like
  • Cageyone
    , contributor
    Comments (231) | Send Message
    I've been waiting to hear from David and Mr. Knowitall on this news as well!
    15 Jun 2014, 09:24 AM Reply Like
  • NBohrQM
    , contributor
    Comments (210) | Send Message
    KIA is clearly nervous regarding this ER. He holds (Sept 2014 $8 strike puts) I'm sure you'll see the trolling posts soon after if -ve. If +ve...we'll see :)
    15 Jun 2014, 10:35 AM Reply Like
  • gwynfryn
    , contributor
    Comments (6479) | Send Message
    Killed In Action?
    18 Jun 2014, 08:40 AM Reply Like
  • freespirit2
    , contributor
    Comments (19) | Send Message
    I love the new nfc app that came came with the last update. It will be even better when retailers have the proper machines.
    17 Jun 2014, 01:20 PM Reply Like
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