NFC Payment built in? Whats the big deal??

[p2kart]

I dont get the whole issue of NFC payments built into cellphones??

Like many of you I have a iPhone4, and like some/most of you I have a TPU case.

When I go on long cycling rides and dont want to carry a lot with me I carry 3 things, my iphone, drivers license and mastercard.

Where do I keep them? I slip them between the back of my phone and the TPU case.

I get lots of looks when I use my iphone4 to pay for things. I put my phone over the scanner and it picks up my Mastercard.

If I wanted to I could get MC to send me an additional card and leave it in there.

NFC not needed here...

My 2 cents.

 

[generik777]

Well even though you don't think so, your case is one where I could actually see NFC being useful. But I personally don't see the big deal about NFC in the iPhone. Sure it's cool and all that, just don't see myself using much. Although that could change.

 

[CalifJewls]

At first I thought the same thing, I wouldn't need it, but as I thought about it, I realized this could actually come in extremely handy..

1. As someone who has had their wallet stolen, it wasn't fun at all. I bet there will be a remote data destruct feature in case your phone is lost or stolen, that's much easier than calling several credit card companies..
2. When traveling, theme parks, day trips, not having to bring a purse/wallet is a great thing..
3. As someone who is under several doctors care, needing bloodwork each week, not having to pull out my card for every doctor, nurse and tech is a bonus..
4. Membership/Reward/Loyalty cards all in my phone would be awesome..

Besides I believe this is the way of the future anyway, one "card" for all your information, drivers license, credit cards, medical, etc..

 

[generik777]

Besides I believe this is the way of the future anyway, one "card" for all your information, drivers license, credit cards, medical, etc..

That would be kinda cool. Would suck though if you lost that one card/device.

 

[sting7k]

I dont get the whole issue of NFC payments built into cellphones??

Apparantly the physical contact of swiping a magnetic strip is too much effort now.

 

[generik777]

Apparantly the physical contact of swiping a magnetic strip is too much effort now.

I think it's more the convenience of being able to carry one device rather then a bunch of things. But I do agree, I don't really see the need for it myself.

Not only that but how many places will actually support NFC payments? It's just like those tap to pay cards, I see very few places that have the equipment to accept those and they've been around for awhile.

 

[whmurray]

One reason for using NFC is that the current system, mag-stripe and PIN, is not secure. Every time one uses a mag-stripe card and a PIN at a POS device or even at some ATMs, one risks compromise.

There are two alternatives on the table, EMV* and NFC. McDonalds, CVS, and Sheetz have signed up for EMV and have paid for the mods to their POS devices. Most merchants do not see the value. The issuers do not want to pay.

The cost of fraud is escalating but it is paid by the merchants and the consumers, not the issuers.

EMV does not solve the problem of "card not present" transactions like mail-order, phone, or Internet transactions. Most proposed solutions to that problem involve a display, like on a hand-held. One proposal is credit cards with displays and key-pads. These would be expensive and their life limited to that of the battery. Consumers do not want to carry one extra device, much less half a dozen, just for payments. Therefore, putting this function on the phone is an attractive solution. In that case, NFC would trump EMV.

Of course, NFC is not the only way for a phone to communicate with a POS device. I like the Starbucks solution in which my phone displays a bar-code and Starbucks scans it.


* EMV stands for Eurocard, MasterCard, and Visa. It is the name of an RFID smartcard standard for credit cards. They may be called "tap cards" because all one has to do to approve a transaction is to touch the card to the POS device. In the US, these cards are offered nation-wide by American Express and in a few local markets by MC and Visa.