APR 19, 2016

Nets and JCB partner to drive mobile payments in Denmark

19 April 2016

April 19 2016, Ballerup and Tokyo: Nets A/S and JCB International Co., Ltd. (JCB), the international operations subsidiary of JCB Co., Ltd. have entered into a partnership agreement which allows Nets to use J/Speedy, JCB's contactless technology, for Dankort payments with smart phones.

When Nets launch Dankort on the mobile in autumn 2016 it will thus be based on an international, well-proven technology from JCB, an international payments scheme originating from Japan. JCB has many years of experience facilitating contactless mobile payments as Japan was among the first countries in the world to adopt mobile payments and make it a part of daily life. This also marks an important milestone for JCB as it aims to accelerate its mobile payment implementation globally using Host Card Emulation (HCE) technology.

“We are very pleased with this long-term partnership with JCB that will help retain Dankort as the most cost-effective and convenient means of payment for Danish merchants and consumers.”, says Jeppe Juul-Andersen, Senior Vice President in Nets with the responsibility for Dankort.

Nets believes that in 2020 up to half of all payments at the point-of-sale in Denmark may be initialized from a smartphone and that there will be more than 3 million Dankort on mobile phones.

“With this new partnership, Dankort will be powered by strong technology from JCB. The first step in the partnership will be to base Dankort on the mobile phone on JCB's technology but there is also a solid base for further developments. A second phase will include international interoperability using JCB's global network. ” adds Jeppe Juul-Andersen.

Seamless transition for Danish cardmembers and merchants

Paying contactless with the mobile will be very similar to the payment experience when using the contactless cards at the point-of-sale. The user just “tap and go” without any physical contact between phone and terminal. If the payment exceeds DKK 200 a passcode must be entered on the phone to complete the payment.

Dankort on the mobile phone can be accepted by all merchants accepting Dankort based on the current subscription model and the existing terminal infrastructure. Merchants who have already activated their terminal to accept contactless payments will only have to make small adjustments to their terminal set-up. The number of terminals with contactless readers is steadily increasing. Right now 60 pct. of all Dankort transactions are carried out using a contactless enabled terminal and over the coming years Nets expects that most of the terminals in Denmark will be able to accept contactless payments.

Dankort was originally established based on international scheme standards and international corporation has ever since been an important driver in the ongoing development of the Dankort. Therefore, the partnership with JCB is a natural next step for the Dankort. The core technology powering Dankort on the mobile includes state-of-the-art security through tokenisation and strong cardmember protection. It will not be visible for cardmembers as they will pay in the same way as they do today with their contactless plastic cards.

Contactless payments to JCB cardmembers in Denmark

As a result of the partnership agreement Nets will, with support from terminal vendors and integrators, gradually prepare Danish terminals to accept payments with Dankort via mobile phones. Once this is in place, JCB cardmembers can benefit from making J/Speedy contactless payments when visiting merchants in Denmark that accept JCB cards.

Kimihisa Imada, Deputy President of JCB International stated, “We are honoured to announce a remarkable partnership with Nets. We are confident that our mobile payment program is a secure and future-proof solution which a lot of Dankort issuers and merchants will be satisfied with. Furthermore, our partnership will ensure a wide acceptance of J/Speedy in Denmark, and this will bring huge benefits to our JCB cardmembers. We believe that the relationship between Nets and JCB is becoming stronger and will be able to provide new attractive benefits with both Nets and JCB partners. In order to make our partnership more worthwhile, JCB will continue to make efforts to promote JCB contactless payment infrastructure in European countries.”

About Nets

At Nets, we specialise in powering digital payments. We connect banks, businesses and consumers via an international network facilitating digital payments. Spanning across the Nordic region, we provide a broad range of card services, account services, and payment solutions for merchants.


About Dankort on mobile phones

Nets is developing a solution for Dankort on mobile phones, which supports smartphones with an active Near Field Communication (NFC) function as well as smartphones without an active NFC function through the use of QR codes or Bluetooth.

The NFC contactless technology is based on the use of token. This means that the information in the smartphone which is exchanged between smartphone and terminal does not contain sensitive data. The smartphone generates a token, a numerical value, which Nets uses to create a payment transaction. The payment is performed by tapping the smartphone on the contactless terminal without the need for any physical contact between smartphone and terminal. The terminal display will show when the payment is approved. Entering of passcode on device (PIN) will only be necessary for purchases above 200,- DKK.

Dankort on the mobile is expected to be launched this autumn and will subsequently be made available in mobile wallets issued by banks or others.