[muglo] Apple lags behind in NFC... Do not loose your smartphone. -Long with some interesting comments.
- From: Frank Birch <fbirch@xxxxxxxxxx>
- Date: Thu, 29 Mar 2012 09:54:55 -0400
'Digital wallet' will transform smartphone, and how we spend
By Adam Carter, CBC News Posted: Mar 29, 2012 5:26 AM ET Last Updated: Mar 29,
2012 6:36 AM ET Read 79comments79
Companies like Visa and Mastercard are among the many financial and
communications companies aggressively developing the digital wallet. (Paul
Sancya/ Associated Press)
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Digital wallets are on their way to replacing their leather counterparts for
many Canadians within the next two years, according to retail and
communications specialists.
One thing it could change, for example, is your morning coffee ritual.
David Robinson, vice-president of emerging communications at Rogers, envisions
a Tim Hortons application that would know you always order a large
double-double, track your location via GPS and charge your bank account before
you’ve even set eyes on the restaurant.
"Then," says Robinson, "you just pick it up in an express window."
The smartphone-enabled wallet also allows consumers to purchase items simply by
tapping their phone on a pad at the cash, much like a tap-and-pay credit card.
Those cards only deal in transactions, but the possibilities for digital
wallets could be endless.
Big players such as Rogers, Visa and PayPal are backing the new technology,
signaling its rise in the near future.
The list of digital wallet capabilities is long.
'Every carrier and bank on the planet wants to be able to do this.
'
—David Robinson, vice-president of emerging communications at Rogers
New to the city and need a transit pass? You could simply purchase a pass on
your phone and go. Access cards for your office building could be there, too.
Receipts would be stored in the phone, and so alleviate many of the headaches
of the return line.
The way consumers buy alcohol or cigarettes would also change, as patrons could
simply tap their phone on a pad at the cash to indicate their age to a clerk.
It could even bring sweeping change to the way health-care identification
works, as provincial health cards could reside on a phone in the same wallet.
Test results could be emailed or explained to patients over the phone,
eliminating many types of follow-up visits.
Stolen, copied or forged plastic health cards would be a thing of the past.
The digital wallet is a virtual representation of the real thing – except it
resides in a digital device.
A wireless signal known as near field communication (NFC) is at the heart of
the innovation, where a chip in the device sends a signal from the phone to a
payment terminal.
Canada as a frontrunner
Robinson says Canada is uniquely ready for digital wallets because the
infrastructure is more developed here than in most countries.
As well, Canadians are in the top four in the world for smartphone usage and
often have the latest and greatest devices.
Mobile payments and digital wallets are top of the development heap, says Visa
Canada's Derek Colfer.
"There's lots of conversations occurring between mobile network operators,
device manufacturers and banks," Colfer says. "There will be a plethora of
digital wallets for consumers to choose from within the next 24 months."
Visa believes that once the retail backbone is established the rest will follow.
Rogers' Robinson says that in a few years digital wallets will be as common as
a camera is on a cellphone today. "Every carrier and bank on the planet wants
to be able to do this," he says.
Still, according to a report in December 2011 by the Task Force for the Payment
Systems Review, Canada is still not yet where it needs to be for digital
payments.
The review, commissioned by Finance Minister Jim Flaherty, says that Canada has
not yet implemented a digital authentication process that is both safe and easy
to use — something that industry players are pushing to rectify.
The review also states that Canadians rely too heavily on cheques, and that
financial institutions could save $600 million a year in cost savings by 2020
under a digital payments system.
Doing it now
The seeds of digital wallets have been sown already — Google and PayPal have
versions set up for payment. Visa’s digital wallet works on some LG, Samsung
and BlackBerry phones for direct payment, including the BlackBerry Bold 9900
and 9790 models, as well as the Curve 9360 and 9380.
Robinson says RIM is the most aggressive but many handset manufacturers are
developing the technology.
Other phones that are already NFC-capable include the LG Optimus LTE, the HTC
Ruby, and Samsung's Galaxy S II.
Apple is curiously absent from the list – but many expect the company to
include the feature on its next phones.
"Apple is very aggressive in patents in the category," Robinson says. "They've
filed all sorts of patents around NFC. So looking at that would indicate that
they're going to do something."
Making it safe
Every developer says security is a huge issue for consumers.
Research conducted for PayPal Canada found that 43 per cent of people don't
trust their smartphone to keep their personal information secure, and more than
80 per cent worry about financial privacy while making mobile transactions.
But the developers of digital wallets believe they will be even more secure
than traditional ones.
"If there is a transaction that occurs on an e-commerce site that you didn't
make, you will not pay for it," says Colfer.
And no need to panic and call a dozen card issuers if your digital wallet is
lost.
"One of the services we'll provide as carriers is we'll inform all issuers
simultaneously that the cards have been compromised, and then issuers will be
able to lock those accounts," Robinson says.
Then, new phone in hand, a person could piece their wallet back together just
tapping on a screen and making some phone calls from an NFC-capable device – a
much quicker ordeal.
Smartphone providers won't have detailed credit card information. Instead,
they'll have a record that an account exists on a particular device.
"When we put a card in secure memory, no one has access to that information
other than the issuers," Robinson says.
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canadakim1
2012/03/29
at 9:31 AM ET
Welcome to the New World Order
"Shut up slaves and go back to work, work harder and longer so you can pay your
taxes to the world regime."
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Wayne49
2012/03/29
at 9:30 AM ET
Two things that strike me about this piece; One- I have always believed
technology should always better our lives. If you have to programme into your
smartphone where you purchase your morning coffee, I think you have bigger
problems than time management. Two- Recently, a great many Canadians, (me
included) wailed against Bill C-31, the online survillanence bill, saying that
it was intrusive and gave the government the ability to access your personal
information without any real justification. Now, with this technology, we,
society, are going to be offering up this information for FREE!!!
Am I missing something here???!!!
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Rob366366
2012/03/29
at 9:19 AM ET
David Robinson, vice-president of emerging communications at Rogers, envisions
a Tim Hortons application that would know you always order a large
double-double, track your location via GPS and charge your bank account before
you've even set eyes on the restaurant.
---------------------------------
NO NO NO NO NO!
I'm sick today and drive past my starbucks to go to the doctor... Some computer
figured that I was going to get a coffee and ordered it for me?
Not to mention that anyone who has the slightest desire will track me by GPS
24/7.
And Rogers holding that information. They can't even send you a bill that isn't
at least 3x what was agree upon. Who out there thinks for one second they won't
sell this to anyone... including crooks who will know when you're not at
home... near your car... etc.
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KevinDW
2012/03/29
at 9:19 AM ET
NO WAY would I sign up for a system that allows Tims to track my location
If this becomes standard I'll stop buying
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Teiresias
2012/03/29
at 9:17 AM ET
Ummmmm....
I think I'll decide whether I want my coffee or not, thanks.
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