The ICT company FANAP is rolling out a cashless payment service in Kish Island off the Persian Gulf that makes use of QR Codes and NFC payment systems.
FANAP is an Iranian fintech backed by Bank Pasargad. The cashless payment service is being employed as per an agreement between Bank Pasargad and Kish Free Trade Zone Organization.
The agreement, among other things, proposes all commercial units in the popular tourist island be equipped with Near Field Communication (NFC) technology enhanced point of sale (POS) terminals, a FANAP press release said.
NFC makes transactions possible by holding two electronic devices 10 cm apart.
For using the service users need to install an e-wallet smartphone application on their handsets which is dubbed “Kipaad”. The system can be used for making minor payments of under 500,000 rials ($4).
The e-wallet allows users to store multiple debit cards and bank account numbers on their smartphone. Through the service, instead of using debit cards, for making payments people can simply tap their handset on the NFC enhanced payment terminal.
In addition to the NFC system, users can scan QR codes of each business unit with the app and pay shopkeepers online.
The service are currently only available in Kish Trade Center. But according to a manager at Bank Pasargad, Mohammad Ajdani, before the current year ends in March 2019, the services will be accessible throughout the island.
Introduction of the electronic payment service is part of a project billed as ‘Cashless Island’ and seeks to move Kish toward becoming a smart city.
A smart city is an urban development vision that uses information and communication technologies to increase operational efficiency, share information with the public and improve both the quality of services and welfare.