Thursday, January 31, 2013

Will wallets be replaced with Smartphones?

What two things do you carry with you everyday and don't leave home without? Most people would say their phones and wallets. So of course companies are looking to combine the two. They’re looking at giving the smartphones the ability to make payments at store locations. No more looking through your wallet or purse(moms especially) for cash or credit cards.

This technology is called, "near field communication," or NFC.
Devices with NFC capability have a special chip that sends signals to other NFC-equipped devices within an inch or so. The short range transmission helps ensure security and streamlines the digital payment. All you have to do is touch the phone to the terminal and you just paid!

The NFC payment software works just like a built-in smartphone app and can be loaded with multiple debit and credit cards. This payment information is typically stored in the cloud, and can be accessed on any device that uses near-field communication for payments.
You have to enter a passcode to access your payment information and everything is saved on a server.

Everything is transmitted securely. Digital wallets not only save you time at checkout but, it can be safer than the traditional credit cards. The sneaky thieves won’t be able to use it to make payments without your passcode.

Android devices are currently the guinea pigs, although there are many smartphones and tablets that offer this feature. Google Wallet has emerged as the frontrunner of NFC software, and has already reached agreements with more than two dozen merchants to carry the NFC terminals in their stores.  Other companies are looking to get involved too.

 It's most likely going to be a few years until it is all worked out completely, so hang on to those wallets a little longer. The end is near!