Contactless Smart Cards, RFID, Payment, Transit and Security

NFC in London: Will consumers use it?

Friday, February 29, 2008

NFC technology is sound, the interface is good, the partnerships have been formed, but … Will consumers use it?

The widely talked about London launch of contactless payment devices is only a little over half of a year in, but London is making news again with its Near Field Communications (NFC) trial. Started in November 2007, major players in the telecommunications, banking and transit markets have come together to test NFC payments in both transit and retail environments.

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The Smart Card Alliance Transportation Council has published a white paper examining how the transit industry can best make use of NFC technology.

“One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy,” said Transportation Council Chairman Craig Roberts. “This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy.”

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In the hopes that mobile wallets and contactless payments will catch on with consumers, mobile phone and financial services firms are looking to next year’s Olympics in London as a tipping point.

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A recent survey conducted by Wincor Nixdorf shows that a strong majority of French consumers are interested in using fingerprint scanning technology to secure transactions.

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Superdrug, one of Britain’s largest beauty and health retailers, has introduced contactless payment for its in-store customers, according to Retail Gazette.

Created by Streamline and Visa Europe, the contactless system will enable customers to make payments of up to £15 (approx. USD $23) by simply waving their contactless bank card at the more than 50 participating Superdrug stores in London and Liverpool.

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Proxama has announced a partnership with semiconductor supplier ARM Holdings to create secure payment mechanisms for mobile handsets.

The UK-based partners say they will combine ARM’s TrustZone technology with Proxama’s Mobile Wallet to develop a “highly secure” environment for NFC-enabled mobile contactless payments and mobile internet payments.

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The Federal Trade Commission (FTC) has announced that it will hold a workshop on April 26 to examine the use of mobile payments and how this emerging technology impacts consumers.

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