The article that I read was about how T-Mobile, Verizon Wireless and AT&T Inc. have recently came together to promote near-field communication (NFC) which enables the exchange of data between devices. These companies joined forces to turn smart phones into an electronic wallet which contains all your credit card information. It is also said your smart phone will be able to scan computer chips for discounts and product info, and ultimately integrate driver’s licenses and other forms of ID, making it “secure”. DoCoMo’s original idea of the mobile wallet created five years ago will end the need to scavenge through your wallet for your credit card or cash in North America. With the mobile wallet, you can simply swipe your phone over the NFC-enabled register which apply discounts your item(s) and debits your bank account. The cell phone will wriggle its way even further into consumer lifestyles worldwide after scouring the electronic wallet upon North America.
Connections:
I think this article connects with Chapter 14 since a credit card is a type of payment that is used widely throughout the world. In this case, our traditional credit card has been replaced with a cell phone which embodies all of its information and functions. With the mobile wallet, one still has interest calculated, a minimum daily credit, a passbook and other various features depending on what your bank provides. Also, receipts can be viewed on the phone in the form of texts, allowing you to keep track of your balance. One is also able to facilitate “electronic transfer of funds” over the phone between people or businesses as well. Unlike usual credit card transactions however, no signature will be required for purchases under a certain amount while purchases exceeding this amount which may vary will require the user to simply enter a password.
Reflections:
Almost everyone has their phone with them 24/7 and with the mobile wallet; they might not think, whip it out and spend. If you lose your phone, you have also lost your credit card therefore leaving you susceptible to fraud. Around the world, there are several types of communication technologies which include NFC and RFID (Radio-frequency identification) which is used in Japan. Companies will without a doubt need to upgrade their technology but with such a variety, what type of reader will they choose or will they not change at all? Merchants who do not offer this technology may find themselves losing customers to competitors who adopt this new credit card payment. Moreover, should the seller’s processing machine be lost, stolen, or hacked, it is probable that someone could make fraudulent charges against your customer’s which could cause repercussions.
I think this idea would be really effective in Canada. Checking credit card statements would be very easy if you could just press a few buttons on your phone. It could also help minimize fraud because you're checking your credit statement more frequently. The mobile wallet might be a little difficult to introduce in the country though, since Canada is quite behind when it comes to technology. I agree with you that it might be an issue with having a mobile wallet and losing your phone. This article was an interesting read, keep up the good work!
ReplyDeleteThis article was a good read! You have brought to surface many strong points. I have heard little about this type of transaction happening in Japan, but was not aware that people were going to bring it to North America. However, I'm not too big on this idea of having a mobile wallet. Even though this eliminates having too many credit cards and cash on hand, I think there would be too much personal information on only one device. Everything would be based on the "trust" system when you purchase products, especially if you lose your phone or it is stolen. Even if you set a limit as to how much you can spend before a password is required, you are still susceptible to fraud. When somebody loses their mobile wallet, how would they be able to report it? They have no way of contacting their carrier, unless a stranger is nice enough and willing to let people use their phone. In a brighter light, this would help retail efficiency, allowing customers to zip in and out of stores, as well it will help shorten the line-ups in stores to buy merchandise. Overall, I do not think that we, North Americans, are ready to handle such technology as well as Japan does.
ReplyDeleteD. Kwan