Will Cell Phones Replace Credit Cards?

[Ceres]

Interesting article on redOrbit about Japanese consumers and companies using cell phones that double as credit cards.

More than 50 million – about half – of all cell phone users in Japan currently use phones with payment capabilities. Japan has pioneered not just the technology but also the business models that will pave the way for wallet phones to become a standard payment method in the future.

Trials in Japan showed that cell phones could effectively replace credit cards and even house keys and other commonly pocketed items.

Would you like one of these wallet phones?

One thing that would make me nervous is what would I do if I lost my wallet phone. I'd have no phone, no money, and no house keys! It wouldn't be a good day for me...!

 

[sanju123]

I have also heard that cell phones will replace credit cards..well the rest of the things I was never aware of...but it sounds interesting. Just one slip in pocket and you are fully equipped.But if on slip out of the pocket you are badly caught. Good idea,but needs lot of safety measures required to be taken.

 

[Ceres]

These 'electronic wallets' are also coming to India. Citibank, Nokia and Vodafone are joining forces to begin a trial project whereby users will be able to make payment by tapping their mobile phones against a reader terminal. This trial project is taking place in Bangalore.

LiveMint.com has more info on this:

The US bank is now counting on India, the world’s fastest growing mobile phone market with at least 400 million connections and a young, tech-savvy population

“This is not a technology trial but a business model trial... We hope new service offerings such as discount coupons and information download will bring incremental revenues,” Jeff Semenchuk, executive vice president, head of growth ventures, Citi Innovation, at Citibank said on Tuesday.

 

[pubdomains.in]

Nokia started the trial long back (in 2007) with Nokia 6131 NFC which works on RFID / Similar to tags (primarily for anti-theft) on stuff in stores in malls.

A big threat though is that even when you are not aware - someone could sniff data transmission taking place between your mobile and payment device - and later decrypt to misuse. Pretty similar to attack on wifi to trace password for your legit broadband account.

Personally I am not in favour of CC or RFID devices as CC.

 

[Jeff]

A big threat though is that even when you are not aware - someone could sniff data transmission taking place between your mobile and payment device - and later decrypt to misuse. Pretty similar to attack on wifi to trace password for your legit broadband account.

Is the data not secured or encoded somehow?

 

[pubdomains.in]

Is the data not secured or encoded somehow?

Data is indeed encrypted - but the threat is when someone can copy your broadcast messages, decrypt them later and misuse them. Creating an identical IMEI and other data is no big deal (i.e cloning your mobile phone)

Thx

 

[Jeff]

Thanks pubdomains.in!