The Digital Wallet: Paying by Phone

[one...two...tree 2,762]

By Doug Aamoth

Here comes the digital wallet—to the New York area, at least. Reuters is reporting that Bank of America and Visa will be rolling out a pilot pay-by-phone program in the New York area next month that'll run until year's end.

The system will work with smartphones, but not quite as seamlessly as you'd think. Instead of installing a simple application, handsets will have to be outfitted with special RFID-based hardware chips. It's likely these chips will be available in the same format that will fit in memory expansion slots or, in the case of the iPhone, perhaps integrated into a special protective case.

According to Reuters:

"The program will allow select New York-area employees and customers to install small chips, supplied by Visa and its technology vendors, in their smartphones that emit radio signals over very short distances.

Customers would then 'bump' their phones with point-of-sale devices in stores -- actually they need only wave the phones near the devices -- and their bank account data would be collected and their purchases completed."

Visa is apparently planning a similar trial with US Bancorp that will begin in October, though details on that program are unknown. News of these trials comes shortly after rumors of AT&T, Verizon, and T-Mobile being involved in talks to create their own joint pay-by-phone system that would cut Visa and Mastercard out of the equation altogether.

Would you go to the lengths on installing a special chip in your phone in order to make mobile payments? Would you use mobile payments if all you had to do was install a software application on your phone? Or does the idea of using your phone to purchase items turn you off altogether?

Read more: http://techland.com/.../#ixzz0xLGnBY5k

[daboyz 36]

By Doug Aamoth

Here comes the digital wallet—to the New York area, at least. Reuters is reporting that Bank of America and Visa will be rolling out a pilot pay-by-phone program in the New York area next month that'll run until year's end.

The system will work with smartphones, but not quite as seamlessly as you'd think. Instead of installing a simple application, handsets will have to be outfitted with special RFID-based hardware chips. It's likely these chips will be available in the same format that will fit in memory expansion slots or, in the case of the iPhone, perhaps integrated into a special protective case.

According to Reuters:

"The program will allow select New York-area employees and customers to install small chips, supplied by Visa and its technology vendors, in their smartphones that emit radio signals over very short distances.

Customers would then 'bump' their phones with point-of-sale devices in stores -- actually they need only wave the phones near the devices -- and their bank account data would be collected and their purchases completed."

Visa is apparently planning a similar trial with US Bancorp that will begin in October, though details on that program are unknown. News of these trials comes shortly after rumors of AT&T, Verizon, and T-Mobile being involved in talks to create their own joint pay-by-phone system that would cut Visa and Mastercard out of the equation altogether.

Would you go to the lengths on installing a special chip in your phone in order to make mobile payments? Would you use mobile payments if all you had to do was install a software application on your phone? Or does the idea of using your phone to purchase items turn you off altogether?

Read more: http://techland.com/.../#ixzz0xLGnBY5k

They've been doing that in Japan for years. You can buy a Coke with your phone.

[evli1966 88]

They've been doing that in Japan for years. You can buy a Coke with your phone.

yes

But still kind of cool and risky.

but if the commerce bill gets passed then the $10 min will hit hard on some people like myself that is mostly cashless through the week paying the card off each week.

[Darnell 8,478]

i like the 'pay me via phone' in China, also. Is verra nice

[slim 1,530]

They've been doing this in Asia for years. Very convenient.

[Texanadian 10]

No thanks. Too many people lose their phones as is.

I was surprised to see that Iphones allow you to deposit a cheque to your bank account by simply taking a picture of the front and back and then using the app for it.

[slim 1,530]

No thanks. Too many people lose their phones as is.

Yeah but how many people lose their wallets?

[Texanadian 10]

Very few in comparison. I don't even like those air swipe pads for credit cards.

[slim 1,530]

Very few in comparison. I don't even like those air swipe pads for credit cards.

Exactly. People don't lose their wallets because they have value. Lose your phone you don't lose much.

Add value to your phone and voila! folks will start hanging onto them.

Air swipe pads for credit cards are going to be exactly what these do. Why don't you like them?

[Texanadian 10]

People always have their phones out. If they're not talking on them, they're texting. Or playing games. Or waiting for a call. Or simply passing the time. They'll sit on tables. They're passing them around to friends.

A wallet on the other hand is either in the pocket or out just to pay for something before going back in the pocket. It's not about value. Heck, the phones today probably cost more than what people have in cash in their wallets (ignoring in the inconvenience aspect of losing your wallet).

I don't like the air swipe setups because they're not secure. Most stores still use WEP wireless security. It's way too easy for somebody to grab your numbers.

[evli1966 88]

Exactly. People don't lose their wallets because they have value. Lose your phone you don't lose much.

Add value to your phone and voila! folks will start hanging onto them.

Air swipe pads for credit cards are going to be exactly what these do. Why don't you like them?

What he said about the security features.

People always have their phones out. If they're not talking on them, they're texting. Or playing games. Or waiting for a call. Or simply passing the time. They'll sit on tables. They're passing them around to friends.

A wallet on the other hand is either in the pocket or out just to pay for something before going back in the pocket. It's not about value. Heck, the phones today probably cost more than what people have in cash in their wallets (ignoring in the inconvenience aspect of losing your wallet).

I don't like the air swipe setups because they're not secure. Most stores still use WEP wireless security. It's way too easy for somebody to grab your numbers.

Ahh but have you seen the neat little gadgets that look like a phone that swipes magnetic information from your wallets?

let me edit this...it gets the information while your wallet is in your pocket no need to grab the card.

much easier than hacking the phone.

Edited August 23, 2010 by evli1966

[slim 1,530]

Sure it's possible, but any technology can be defeated. There are smart ways to protect yourself and your info.

[spookyturtle 9,466]

Sure it's possible, but any technology can be defeated. There are smart ways to protect yourself and your info.

Australia is safe and their technology cannot be defeated.

[Obama 2012 1,714]

this digital/non-existent currency world is going to get very dangerous....

I mean that in the sense that once currency disappears, the government will have full control of your life.

[Dr. A ♥ O 203]

I thought the phone companies couldn't come to an agreement. Anyways, I'd like the service if it was convenient and affordable.