Discover Moves Closer to Contactless, But Stays Mum on Plans

Morgan Stanley's Discover Financial Services LLC payment network on Tuesday announced its certification of a contactless card reader from On Track Innovations Ltd., Discover's second such announcement in three months. But Riverwoods, Ill.-based Discover still hasn't revealed its larger contactless plans. “There's nothing we can talk about right now,” a Discover spokesperson tells Digital Transactions News. “We obviously are working on our infrastructure.” The spokesperson says Discover may have more to say “soon,” but refuses to say exactly when. Discover has certified the Saturn 5000 contactless reader from Rosh Pina, Israel-based OTI, a provider of microprocessor-based smart card technology. “The certification process ensures that the Saturn 5000's reader technology is able to support Discover Network's proprietary contactless payment solution,” Discover said in a news release. More OTI readers are undergoing the certification process. The Saturn 5000 is compatible with equipment from the major point-of-sale terminal providers, supports multiple application programs and reads a variety of payments sources, including credit cards, key fobs, and cell phones. The reader employs ISO 14443 technology, an interoperability standard also used by the PayPass, ExpressPay, and Visa Contactless programs from Discover rivals MasterCard Inc., American Express Co., and Visa USA, respectively. The Saturn 5000's plug-and-play design and small footprint facilitates quick upgrades of existing POS terminals to accept contactless payments, according to the release. The reader faces the customer, which provides for faster transactions, and uses matched antenna technology for effective power consumption, reliable communications, and additional levels of security and encryption throughout the communication link, the release says. According to OTI, the antenna can be installed up to 100 feet from the reader, freeing merchants from the need to dismantle their POS systems in order to integrate the reader into their payment operations. In August, Discover certified several devices from Santa Clara, Calif.-based ViVOtech Inc., a specialist in contactless payment hardware (Digital Transactions News, Aug. 11).