Will you give up cash and privacy in exchange for making mobile electronic payments from a smartphone? The tap of the phone on the Near Field Communication (NFC) terminal reader will provide manufacturers three important pieces of information that will help forecast product demand: user name, location, and intent.
It turns out there are close to one million readers supporting Vivotech NFC payment software and readers installed in stores worldwide, just waiting for transaction-ready phones. Vivotech founder Mohammad Khan estimates his company holds 70 percent market share worldwide for NFC payment software and readers, which supports Google Wallet at point-of-sale terminals in retail stores.
Google (Nasdaq: GOOG) licenses Vivotech's technology to enable payments and conduct transactions, Khan said. The software lets consumers download plastic credit cards into their NFC-supporting smartphone. Khan calls it the "one-tap checkout" for everything from point-of-sale (PoS) terminals to smart posters that enable consumers to download coupons on to their phone or even make purchases. The first pilot for smart posters occurred in Taiwan in February 2007, for MasterCard.
Banks will use Vivotech's over-the-air (OTA) technology to securely provision credit, debit, prepaid, and other accounts to mobile phones for use through hundreds of thousands of Vivotech NFC readers and NFC-enabled media, such as smart posters. The software aims to give banks control over the OTA provisioning process and ensures security from behind their firewall to Google Wallet software located inside the mobile phone. But is it really that secure?
Vivotech's long-term strategy turned it from a pure play technology manufacturer into a mobile advertising and marketing company as it makes plans to build out services supporting NFC for Google. As advertising and marketing services continue to evolve, ads gain value when linked with offers and coupons. It's important to get the consumer interested in trying the product. That interest can have an impact on the price of products, influenced by recommendations and reviews on social sites.
NFC devices continue to drive interest; mobile payment network Isis recently got an infusion of $100 million from Verizon Wireless, AT&T Inc., and T- Mobile USA. The carriers created an alliance to grab a piece of the market for mobile commerce. The hardware and software to support the technology and transactions should launch in Salt Lake City and Austin by mid-2012. Isis will compete with Google's Wallet offering on a variety of phones from Google, Samsung Electronics, Research in Motion (RIM), and others.
As for Vivotech, the company began in 2002 supporting wireless transactions for MasterCard in Orlando. Installation in Dallas followed the next year to support MasterCard's and Nokia's mobile payment program, as well as in Phoenix for American Express.
By the end of 2012, most smartphones will become NFC-enabled. Will you buy one for personal or business use, and will your company tap into the data from NFC purchases to forecast demand or launch advertising and marketing programs?
But it will need one big company to subsidize the equipment to local shops, maybe a big bank can do that. Having expensive end user equipment is always a limitation for technology adoption (think BluRay, 3D TV goggles, etc).
Not all things that glitters are gold. If you loose your card, in a minute, you can call the bank and disable it. If you loose your phone, you are putting yourself into serious emotional disturbances before you can have access to phone. Whereas, the technology awareness is at alarming rate in the west. Anyone must have empty your account before you get another phone to deactivate it. I will be skeptical before I even try to use google wallet. I do not blame you for your opinion on this matter also.
@Jaden, It is not that I want to resist change but carrying wallet with credit card will be difficult to eliminate. We have tendency to misplace phones or forget to charge it at times. You may be without your cell phone and you need to purchase something. But as for the wallet, as long as you know that your driver's license has to be with you at all times that you get into your car, you can hardly forget your credit cards or check cards. I agree that google wallet is great when someone is keeping your personal information on the server that can be crashed and filtered...... it is more risky than to take ownership of your information to certain degree.
As a matter of fact, the use of Google wallet will make a lot of sense, with the value of not having to carry around various credit cards and instead just use a cell phone to make payment.
Mr. Roques, as per NFC manufacturers buy or not. I think, it needs publicity as well market packaging approach.
Take cloud computing for an instance - in its earlier stages, panic and fear about its models, CEOs and top businesses' executives were having headache about its fitting into business scenarios and adoption. Today, cloud computing looks like best approach to most businesses of all levels in achieving IT infrastructure's cost reduction.
@tirlapur, yes, losing your cell phone would cause a big disturbance, but the same would happen if you lost your purse or wallet. Any credit cards you were carrying would be subject to unlawful charges. This brings me back to the security issues I brought up. If the data is encrypted and their needs to security checks on your phone to use it, then it's going to be safer. Might work for some people, but I need to see extensive use and safety precautions before I would go down that route.
I think the idea is great and would work well for some people that don't like to carry around too much other than a cell phone.
@jbond, Although I agree with you that this works well for people who dont want to carry around too much other than a cellphone. But what will happen if you loose your cellphone ? All you crucial data will be compromised, so I feel its better if we diversify our crucial data rather than having it inside cellphone.
In general, we have many credit cards and we use it differently for suitable purpose. If I have one mobile, how many credit cards can I store? How do I select which credit card to use?
Also, what are chances of getting billed wrongly? Will this process be insured from CC company or mobile vendor?
It may be good that, with this technology in action, we may get new mobile phone free from some Credit Card organization.
The supply chain business model requires novel ways of thinking to slim down and cut costs. Along that line, perhaps the electronics industry can learn from showrooming in the retail sector.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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