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Momentum Is Gaining for Cellphones as Credit Cards |
axxxr
Joined: Mar 21, 2003
Posts: > 500
From: Londinium
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Via: The NewYork Times
People already use their cellphones to read e-mail messages, take pictures and play video games. Before long, they may use them in place of their wallets.
"By embedding in the cellphone a computer chip or other type of memory device, a phone can double as a credit card. The chip performs the same function as the magnetic strip on the back of a credit card, storing account information and other data necessary to make a purchase.
In Asia, phone makers are already selling phones that users can swipe against credit or debit card readers, in much the same way they would swipe plastic MasterCard or Visa cards. Trials are now under way to bring the technology to America, industry executives said.
"According to Ron Brown, executive director of the Infrared Data Association, new handsets could become "a major form of payment, because cellphones are the most ubiquitous device in the world." He added, though, that "cash will never go away."
Advocates say that consumers will readily embrace the technology as a way to pay for even small purchases, because it is less bother than taking a credit card out of a purse or parting with cash.
[addsig] |
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plasmadog
Joined: May 06, 2004
Posts: > 500
From: Beantown, India
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m-commerce was supposed to be a reality a few years ago, and the only things i'm able to buy at the moment are ringtones and wallpapers.. which i don't need!! i am amazed that no credit card company has started a payment gateway via mobile commerce.
especially for absent minded guys like me who always forget to take my wallet when i go out!!  |
DeLa
Joined: Jan 22, 2003
Posts: > 500
From:
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In Belgium the hardware is already in place for payments with your phone which is linked to your debet card. Mobistar (Orange group) is currently rounding of the replacement of sim-cards to newer 64k models with payment software embedded (m-banxafe). Today only topping up of your own or another card is possible, but new applications should follow.
One always has to wait at least five years for technology like that to get from technically feasible to widespread use. |
Vlammetje
Joined: Mar 01, 2003
Posts: > 500
From: Den Haag
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One of the major issues with implementing credit facilities linked to ones bank account or credit card ona mobile phone obviously is security. Mobile theft set aside, the secure encryption of data transfers from your mobile to your bank and back requires some upgrades, both bank- and mobile-side. The locking of the program on your mobile (in case it does get stolen) is another matter.
Currently for PC/internet access to my own bank account I have a remote device the generates a password (code) to log in with my unique user ID. This remote device generates a new password for every session.
The updated version of this is already on the market as well: a new remote device that generates a password linked to ones ATM card.
Obviously the idea of walking around with your remote device, your ATM card and your mobile phone in your purse is not the way to go. Purse-theft might be booming business that way 
So secure passwording, secure data transfer supported by all banks and all mobile operators...... I can see it happen but not soon..... not soon at all...
Don't expect to be able to purchase your flight tickets from your mobile credit just yet.
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DeLa
Joined: Jan 22, 2003
Posts: > 500
From:
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The system worked out in Belgium is safe. It comes down to a payment machine like on the counter of a store. It is as safe as the debet card in your wallet. You phone sends a transaction number, your id and your pin code to a server which replies only with an 'ok' to the merchant. It is a lot safer than a credit card.
read more here
http://www.gemplus.com/pss/telecom/download/m_banxafe.pdf
or here (heavy document)
http://www.iab-belgium.be/Media/pdf/nc_dec2003_banksys.pdf
(first relevant results in english coming out from google) |
plasmadog
Joined: May 06, 2004
Posts: > 500
From: Beantown, India
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dela, is it really popular in belgium? what extra charges do u have to pay?
i've heard of similar things in japan, where one can buy stuff from a vending machine. but that's as far as it goes.
m-commerce is pretty limited, considering the boom the mobile telecom sector has undergone.
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DeLa
Joined: Jan 22, 2003
Posts: > 500
From:
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The only real application is topping up your phone credit. That is free and works also when roaming. I have no figures but Mobistar did heavy promotiopn on this. When the new sim-cards became available there were rows in the Mobistar shops.
I know that other applications are being studied, but lots of them face the problem that comes down to the fact that a phone can not issue a ticket and that is often required. We'll have to wait unfortunately. But at least Mobistar provided the market with a larga 'installed base' so that may be a catalyst for new applications.
Technology can develop fast, but the people that actually have to put their money in and take the risk usually want a strong business case. |
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Posted: 2005-01-10 08:33
