Canada: CIBC terminates its mobile payment app

One of the leading mobile payment providers in Canada, CIBC, has decided to remove its mobile payment application from Google Play Store, due to the popularity of Apple and Samsung Pay in the market. Since 2012, the CIBC app has been enabling users to perform Near Field Communication (NFC) payments by simply tapping their mobile phones on payment machines. Back when it was launched, the app was the first that allowed credit card payments with the use of a SIM card in NFC smartphones. 

In addition, CIBC was the first financial institution in Canada that offered Samsung Pay, and among the first to adopt Apple Pay in 2016. “Our recent launches of Apple Pay and Samsung Pay have generated a strong, positive client response,” CIBC spokesman stated. “Based on those results and on client feedback on future mobile payment options, CIBC has decided to stop supporting the CIBC mobile payment app, and to shift our focus on growing mobile payments in other areas. We see this as a growth market and we intend to lead for our clients in this area.”

Only 15% of retail banking consumers use the CIBC Mobile Payment App, while the proportion of consumers using Apple Pay is substantially greater at 35%, supporting the reasoning behind CIBC’s move to terminate its mobile payment app.

According to RFi Group’s Canada Payments council H2 2016 data, only 15% of retail banking consumers use the CIBC Mobile Payment App, while the proportion of consumers using Apple Pay is substantially greater at 35%, supporting the reasoning behind CIBC’s move to terminate its mobile payment app. Nonetheless, the CIBC Mobile Banking app will remain active and available to allow users to conduct a number of banking tasks, such as open an account, set up bill payments, and send and receive money.

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