New focus on cellphone as wallet … again
posted Jun 20th 2005 7:01AM
The idea of using a cellphone as a digital wallet is nothing new;
the Finns have been paying for soda by cell seemingly forever, and
NTT DoCoMo has been pushing its phone-wallet
platform for a couple of years now. What's new is that American companies (the usual laggards when it comes to doing
anything interesting with cellphones), are finally jumping on the cell-wallet bandwagon. AP has a good summary of the
state of the biz, and even though most of the real action continues to be outside of the U.S., American companies like
Chicago's C-Sam are starting to make headway. However, with companies like
MasterCard and
American Express pushing for
their own card-based wireless payment system, the cellphone may once more be left behind when it comes to use as a
wallet. Good thing those phones are still good for making calls, snapping pictures, playing music and storing personal
data.
What I'd like to know is why noone's chosen to integrate a cellphone with an *analog* wallet - now there's a flipphone I'd spring for...
It doesn't surprise me that America is behind in regard to cellphone... stuff. There are a few stores here (in the Philippines) that support the electronic wallets the two major cellphone companies (Smart and Globe) here have (Smart Money and G-Cash, respectively).
Why would I want to use my cell phone to pay for things? What possible advantage to *me* is there that would overcome the numerous disadvantages that immediately come to mind?
The problem with all of this "interesting" cell stuff companies would just love to cram into their phones and your bill is that most of it just really isn't that useful nor of much interest to anyone who isn't a gadget geek or twelve years old (or both).
Myria:
Having my phone charged up with say $50 worth of cash means that when I want to buy something at 7-11 or pay (quickly) for 'any small change' type of transaction, with a simpe wave of the phone it's Done! No fumbling for, and lugging around, a fistful of change. Another added bonus (pardon the pun) is for collecting loyalty points, everytime you buy a coffee at Starbucks (or rent a dvd) there is no need to get the rubber stamp out for yet another card 'somewhere' in my wallet. I think most people will find advantages for *me*. As for the "numerous disadvantages" that come to mind, what would they be compared to say a typical plastic credit card?
Lars -
"As for the "numerous disadvantages" that come to mind, what would they be compared to say a typical plastic credit card?"
1) I don't have to worry about whether or not my credit card's batteries are charged.
2) My credit cards are always in my wallet, which is always in my purse. My cell is sometimes borrowed, loaned, or forgotten at home.
3) At least in theory, only *I* can use my credit cards.
4) I don't have to wonder what the balance is on yet *another* account.
5) My credit cards can't be read, slurped, spoofed, nuked, or turned into one of the digital walking dead from a distance. At least not yet...
6) I trust my cell company even less than I trust my bank.
Myria:
1- The Felica chip takes it's power from the 'reader device' so even if your phone battery is dead it should still work.
2- I'm guessing your cellphone would usually be in your purse too. I hope you don't lend it to "strangers" very often?
3- Thats a *dangerous* theory considering anyone with the right numbers could use your C.C. Only people who have the physical phone can make a transaction!
4- Everytime you use the service it shows the debit with current balance on the phone.
5- ?? Do you have a MasterCard..?!? LOL.
6- Consider it a P2P tranaction that does not really involve either your bank or cellphone carrier.
I think it's possible that people are getting confused about the main thrust of what Felica does in Japan. Basically this is a pre-paid (with cash) system that charges up your phones 'wallet'. Yes, it can link to C.C. and even personal bank account, but that's still quite rare here, and it requires enter pin # etc. extra steps to complete the tranaction.
I should point out that this NFC (Near Field Communication), co-developed by Sony and Phillips, needs the connection to be made within an inch (or so depending on the set-up). It has already been deployed in 10's of Millions of plastic style credit cards w/o a security breach. Now this technology is planted into a cellphone.. thats all.
Most people will find it very convenient to make small 'fast' purchases with this system instead of plugging coins into a machine or digging out pennies at the cash register. Someday, I think you will agree.. 8-)