Apple iCash Archive
by David Fessler, Investment U Senior Analyst
Tuesday, June 14, 2011
How often have you left home and forgotten your wallet? Or had to get a credit card replaced because a stranger lifted your number at a restaurant? As a frequent traveler, I’ve had both happen to me on numerous occasions.
With plastic credit cards fast becoming as obsolete as paper money – Visa, the giant credit card issuer, has created an amazing new technology it calls “payWave” that enables you to leave your wallet, cash and credit cards home. Easily allowing consumers to turn their smartphones into electronic wallets.
PayWave uses something called near field communication (NFC). NFC is a short-range, wireless technology that allows secure communications between two proximate devices. You simply bring your smartphone within a couple of inches of the transaction terminal, and voila, a transaction is complete.
Despite the obvious benefits, the e-wallet industry has had a slow, rocky start.
It’s been a bit of a chicken-and-egg thing…
GSMA Issues Call to Arms to Encourage NFC Devices
Back in 2008, GSMA challenged device manufacturers to begin embedding NFC technology into their devices. Fast-forward to 2011, and the next generation smartphones (still a year or two away) will all have NFC capability.
But Visa didn’t wait. It provided a way to use today’s smartphones to take advantage of NFC-enabled vendors. It involves inserting a special micro-SD (secure digital) card into the slots on some phones. For the iPhone 3 and 4, Apple developed a special plastic skin to hold the chip.To continue reading, please click here...