IMGCAP(1)]
An Irish firm that plans to introduce contactless "tags" for mobile phones has received 2.5 million euros (US$3.4 million) from Delta Partners, an Ireland-based venture-capital firm. Zapa Technology Ltd., a start-up founded by John Nagle, the former CEO of Irish processor and payments-services firm Alphyra Holdings Ltd., plans to introduce the tags late this month and deploy contactless readers. Consumers would affix the tags to their mobile phones. The tags enable users to tap phones against readers to collect loyalty points and rewards. Zapa plans to follow up the launch in Ireland with launches in "other European countries," a spokesperson for the company tells CardLine Global. Zapa is among several companies to introduce contactless tags, which generally are easier to produce, distribute and use than the more-robust Near Field Communication mobile phones, which require relatively close cooperation from handset makers, card schemes and other organizations. United States-based processor First Data Corp. and France-based smart card vendor Oberthur Technologies, for instance, recently introduced their own contactless tags, or stickers. "The tag itself is designed by us and manufactured by a third party," the spokesperson says, adding that United States-based contactless-technology vendor Vivotech Inc. is supplying readers for the endeavor. In a statement, Delta said Maurice Roche, general partner with the venture capital firm, will join Zapa's board. Delta, like other payment-industry observers, views contactless tags as a "bridge" to NFC until NFC-enabled handsets become widely available.
