Zoompass, which currently facilitates mobile money transfers, has now added a contactless payment option to its service that will allow customers to pay for items at select retailers by simply holding a phone up to a contactless payment terminal.

The Zoompass Tag is a 43 x 33 mm sticker that affixes to the back of a mobile phone, and contains all of a user's Zoompass account information. (A Zoompass account can be set up for free online at www.zoompass.com, than filled with dollars through an existing credit card or bank account.) Hold the Tag up to a compatible contactless payment terminal, and the required funds will automatically be deducted from the Zoompass account.

The account holder's personal financial information is stored on a secure server rather than the phone, which means that even if the phone is lost or stolen, the person is not at risk. Using the complementary Zoompass mobile phone application, users can monitor account activity, like a history of withdrawals, current balance, and recent transactions.

Many companies have opted to go the sticker tag route as an interim solution until manufacturers officially come on board with creating Near-Field Communication (NFC) enabled devices that can facilitate contactless payments either via an NFC-equipped SIM card, or NFC technology that's built into the handset itself. Giesecke & Devriet, creators of Zoompass' Convego Air Mobile sticker, claims that it is the only one of its kind with a flexible body.

There's a catch, however. Oddly, while currently in the trial phase with a limited number of users (for in and around the next three months), one is still required to sign on for the MasterCard Zoompass contactless payment card (yes, the physical card) in order to use the mobile Tag. This, explains a company spokesperson, is because the chip in the card and the chip in the Tag need to correlate with one another. Unfortunately Zoompass' Aran Hamilton confirms that the industry isn't ready just yet to completely do away with the plastic card, and this will still be required in partnership with the mobile Tag for the foreseeable future. He likens it to a secondary card that banks will offer for a spouse or family member; the Tag is the second, tech-savvy option that can be added on to the card.

The Zoompass Tag can be used at most contactless payment-ready locations, including those found at retailers like Tim Hortons, McDonalds, Petro Canada, and Loblaws. For the next three months, the service will only be running in a trial stage with select Zoompass clients.

"All Zoompass users will soon be able to pay for their morning coffee, gas at the pump, and lunch at a fast-food restaurant with a quick tap of their mobile phone," comments Robin Dua, President of EnStream LP, parent company to Zoompass.

Enstream launched in 2009 as a joint venture by Bell Mobility, Rogers Wireless, and Telus Mobility. The company's initial service facilitates money transfers such that funds can be moved from one person's Zoompass account to another simply via mobile phones. Transaction fees are similar to standard fees at financial institutions: for example, it's $0.50 to send money, and the same to withdraw funds from the account.

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