Your SmartPhone will become Your WalletPhone

smartphone wallet webandrank blog.thumbnail Your SmartPhone will become Your WalletPhoneAre you guys as excited about smartphone-wallets as Webandrank? The Japanese call them osaifu keitai and they are guaranteed to be the next big thing.
Your SmartPhone can be linked to a digital expense report and can be brandished almost anywhere to pay for whatever it is you need. One little flash of your phone and you have an all-in-one debit card, receipt tracker, loyalty points builder and pocket genius to help through your retail experience.
As per usual this technology already exists in Japan and is yet to appear elsewhere. London based companies, including wifi networks, banking institutions and smartphone manufacturers have been deploying their skills to bring smartphone-wallets to the UK. Just think about this: the processing fees associated with retail credit-card charges in the US alone are $3.2 trillion, yes that’s $3.2 trillion annually, smartphone-wallets hope to capture some of this revenue.
A company worth knowing about is near-field communications (NFC); they work with Visa and MasterCard to provide chips for tap-to-pay credit cards and key fobs. The hope is that Visa and MasterCard will work also with the smartphone manufacturers. The first step in the right direction will be MasterCard working with First Data and Visa working with Device Fidelity to produce a chip for mobile phone cases to be compatible with tap-to-pay consoles.
The fact is many people in the world today already use their smartphones to purchase songs and software there is no reason in the future people will not use their phones in the physical world. Nokia have already announced that the smartphones put up for sale in 2011 will include the NFC chips, no doubt working as a kick start for Apple developers. The NFC brand is going to be really big in the future there’s no debating, just give it five years. NFC is not without its rivals AT&T, Indeed, Verizon and T-Mobile will be charging forward with a joint-payments initiative.
Smartphone-wallets have really got the whole industry hyped up from banks to startups, mobile networks to technology conglomerates. The smartphone-wallet has the potential to change the whole system, such tools as alerts that let the user know they are near a particular merchant and gift cards.
The U.S. Bank is joining forces with Infosys to create a location-based ‘concierge’ that can figure out what you need based on your location. Webandrank find this particularly intrusive; imagine looking for a new pair of shoes and the phone sends you a shoe discount offer.
The question the guys involved at the heart of this new technology are asking is, when will the banking industry change up into the same gear we’re in? This is certainly one to watch, as the economy moves further and further away from cold hard cash (and ultimately the gold standard) our money will simply exist as digits on a computer screen. Can’t figure out if this is a good thing or a bad thing.