A not-so-new technology called, “near-field technology” allows devices to communicate wirelessly at close range. The application of this technology currently making headlines is as a way to store and use credit card information. Rather than swiping a card or waving it at the machine, if you have one of those new-fangled cards with the little squiggly lines, you would simply hold your phone near the terminal to pay.
Currently, there are two major frontrunners. The ubiquitous Google has made a bid with Google Wallet, supported by Master Card and Sprint. The other frontrunner, Isis, has the support of AT&T, T-Mobile, and Verizon, as well as Visa. Though it seems like Isis has the lead with the three largest phone networks and the largest credit card company in the US, Google seems to be the first out of the gates, and that head start could mean big profits.
In any case, at this point, both systems claim that their eventual goal is to be open - that is, to support all credit card companies. Being carried on multiple phone networks wouldn't be a bad thing either.
This is actually a pretty exciting development to me. I hate having to dig in a wallet for a card. Now, I'm not one of those up-to-your-eyeballs-in-plastic-debt types, but I do carry something like a half dozen credit and debit cards on a daily basis a number that isn't terribly strange. It would be very nice to pare down to a phone that I carry anyways.
The sticking point here is saturation and adoption. Few point-of-sale terminals support the little wavy thing, which has been around for what seems like ages. (Just checked, this was originally called, "blink" technology.) Neither Isis nor Google Wallet will be able to pull ahead or succeed until they are able to convince a large number of consumers and businesses to use their technology.
What would you use an electronic wallet for?
No comments:
Post a Comment