Mobile Phone Wallet: The culmination of convenience (Research Paper){0}
Mobile Phone Wallet:
The culmination of convenience
Researches say that within the next five years, our mobile phones will have yet another use; doubling as a wallet for the ultimate convince. Countries that are usually ahead of the United States in technology, such as South Korea and Japan, are already making these futuristic phones into a reality. These mobile wallets will have various uses such as electronic payments, downloading event tickets, opening doors, accessing subways, fast paying on turnpikes, clipping coupons, and acting as another form of identification. Other functions for this growing product are to include bank cards, credit cards, house keys, company access control IDs, electronic cash, and train tickets. This idea seems foreign to us now, but the concept is further examined by how the mobile phone wallet works, common concerns, the benefits to society, and the future for the wallets.
The Mobile Phone Wallet uses a technology called near-field communication (NFC), which allows any enabled device to communicate through a secure radio frequency. NFC is a type of wireless technology that allows devices to exchange small amounts of data across short distances – approximately four inches. Also needed is a special chip, otherwise known as a microchip-laden or “smart card” placed in the phone, with another radio frequency antenna to communicate. Devices equipped with this built-in NFC and smart cards can facilitate m-payments, simply by holding the devices close to each other. To pay for items you simply wave your cell phone within a few inches of a special display that can be found in stores, restaurants and vending machines that also have the NFC technology. You can also make m-payment for quick and easy exchanges of money between individuals. When your purchase is being deducted from the embedded chip, using radio-frequency ID technology, you will hear a fairy-like tinkling sound indicating payment.
A common concern with the mobile phone wallet is that the probability of theft could increase. Some computer experts have suggested that hackers could develop a way to pickpocket the mobile phone wallets by simply getting close to people’s handsets. This has not happened yet, but researchers are looking into applications and ways to prevent and establish a good defense against possible theft. Another problem is the issue of what to do if you were to lose your mobile phone wallet, which possibly could contain all of your most valuable information. If this were to happen, the phone can be locked and no one else can use it for calls or be able to add or subtract money to the cash-dispensing chip. For some, another concern is that the government could possibly find out too much about your spending proclivities and your physical movements.
There are many benefits of the Mobile Wallet phone. As they enter new industries, such as the payment and credit card field, which represents major innovation and could possibility cause trouble for already previously established industries, such as credit cards. Since “going green” and being more environmentally friendly is increasing in popularity, the mobile phone wallet signifies a very attractive benefit for the eco-system. With the development of these phones, all transactions will become paperless with no need for printing receipts and bank statements. We can also eliminate the use of plastic used for credit cards and paper used for cash. When a phone is enabled with near-field communication technology, shoppers can load bank and credit card information onto their phones and then scan them to buy goods.
Samsung is one of the companies looking into further expanding into this market by joining forces with Philips to bring this concept into a reality to the United States. “Joining forces with Philips for the further development of NFC-enabled devices is part of Samsung’s commitment to change the way information and services are paid for, distributed and accessed by all consumers,” said JK Shin, senior vice president of the research and development team at Samsung.
The future for the mobile wallet phone looks promising. Currently, in Japan there are over 9,000 establishments that accept this form of payment, and this number is quickly increasing. To make this concept take off in the United States, more stores and businesses need to incorporate this type of payment as well. Gartner Inc., a technology research company, issued a report in May saying mobile payments will increase 70 percent in 2009, to 73 million people worldwide. Since almost all phones have email and Internet connection, the concept of the mobile phone wallet becoming the new, standardized way of payment seems very likely in the near future.
Bibliography:
- Kageyama, Yuri “Japanese carrier unveils mobile-phone wallet,” retrieved from usatoday.com
- Lev-Ram, Michael “Your cellphone = your wallet” December 1, 2006 retrieved from money.cnn.com
- Sutter, John “Mobile Phone Wallet,” August 13, 2009. Retrieved from www.cnn.com
- “Mobile FeliCa Wallet Phones” Retrieved from: eurotechnology.com
- “Samsung phones to double as wallets,” Posted in Mobile on September 1, 2004 Retrieved from ElectricNews.net