Proxama shares rise on tie up with Cryptomathic for easier contactless payments

20th Feb 2014 12:54

Shares in Proxama rose as the company teamed up with electronic security firm Cryptomathic to launch a contactless payment system for use on mobile phones.The AIM-listed firm, which designs mobile device payment methods, said the new application would allow transactions to be made securely in the same way as a contactless card using a smartphone or similar device.Proxama said current contactless payments with a mobile device depended upon a local hardware-based secure element chip, such as a SIM. The new product can be used "to enable existing mobile applications with a new software-based security infrastructure that works across debit, credit, pre-paid and gift card schemes"."It does not require any point-of-sale infrastructure changes to be made by merchants as it works with existing contactless payment terminals," the company said. "We're seeing a lot of change in the payments industry and consumers are increasingly comfortable with card-based contactless payments, with huge appetite to use their smartphone more," said Chief Executive Neil Garner.Shares in Proxama were up 0.75p, or 16.95%, to 5.18p at 13.19.FP