Touch-less
and cable-less data exchange can be definitely identified as one of today´s
most emerging trends. Ranging from the commonly used wireless data
communication, internet through WiFi and mobile phone networks, over
identification cards to enter buildings or the bus up to cable-less charging of
the new Nokia Lumia phones. And the trend might also be used in the banking
sector by implanting the NFC technology for fast payment of small amounts.
Fields of application
Most
commonly NFC technology is already used in identification cards, for example
giving access to local transportation networks like busses and metros or
allowing persons to enter buildings. Further Stickers with NFC are put on
packages in order to locate them faster in storages or integrated into labels
as anti-theft measures.
A very
interesting application is the usage for fast payment with credit cards already
implemented in some countries, mainly North America, Austria and recently
Germany . This service is called PayWave by Visa or Paypass when provided by
MasterCard.
Further
phone manufacturers are starting to provide phones with already integrated NFC
chips or add special NFC stickers to be put on the back of your phone in order
to use new payment services like Google Wallet.
Advantages
So what are
the advantages of this technology?
Basically
it is a very fast and not complex way to pay small amounts of money. However,
it also increases daily security, as you are not obliged to carry that much
money with you in everyday life as most payments can be done by your NFC
smartphone, making it less attractive for thieves to rob people.
Risks
Every new
technology has also some risks, especially in the electronic sector and when it
comes to money.
Critics
revolve around the safety of data on the card. Experts argue that the cards can
be read out through the pocket within a range of 10 centimeters, making it easy
for thieves to get credit card data, particularly in crowds or public
transportation. Additionally the authorization processes on the terminals might
increase the traceability of the persons, further leading to a glass customer.
If someone
loses his card, fraud is made even easier, as for these small payments with the
NFC technology no signature or pin code is checked. The thief is able to buy
things until the card or phone is blocked. Although only small amounts can be
paid in this way, still a striking financial damage may be done to the customer
Eventually
some companies doubt, that NFC technology is the payment scheme of future. It
is still bound to check-out terminals, which might create queues. Service providers
like PayPal strive for more mobile payment systems, making it for example
possible to pay things from every point inside the shop just by scanning the
barcode with your smartphone.
Crucial
questions will be: how long will this technology for mobile payment take to be
implemented? Does this make NFC technology only a bridge technology, not worth
to make large investments into it?
Outlook
The NFC
technology will definitely enter the market. It might be successful in a world continuously
yearning for faster utilities. Whether it will finally make a fortune can be
observed in the following years. The break even point might be reached already.
Sources
- webpages
of companies involved in this business
Matthäus
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