Smartphones Becomes Smarter Wallets with NFC SIM Cards
Published on 30 November 13
James0
In recent years smartphones have transformed into a device that offers you functions of a telephone, a digital camera, a music player, PA, a PC and much more. However, despite all these advancements, our favourite handheld devices, until now, have lack in their ability to effectively handle monetary transactions like a credit or debit card.
The issue of mobile payments was discussed recently by a distinguished panel at CTIA MobileCON in the heart of Silicon Valley. The panel comprised of Verizon Wireless CEO Dan Mead, Dan Schulman from American Express, Isis CEO Michael Abbott, and Jamba Juice CEO James White.
Although, they were not able to ascertain a timeframe by which mobile payments would achieve mass acceptance, a highly innovative mobile wallet solution from Isis, dominated the talks.
Isis mobile wallet is a free app that has which is available on Google Play that allows you to shop, pay, and save transaction history all from your smartphone. You can currently use Isis mobile wallet with American Express credit and debit card but there are plans to add more payment options.
Isis’ contactless payment solution looks like it is set to become a significant building block in the future of this mobile payments across the US.
Isis is a company that was formed a joint venture between major US providers; AT&T, T-Mobile, and Verizon. These three companies have essentially pulled together to develop a single system that works to reduce the complexities faced by the users making contactless NFC payments from their smartphones.
The Isis system harness the power of NFC together with a special, more secure, type of SIM card and contactless payment terminal points. Together all these components work to make contactless payments possible via a mobile device.
According to Fion McCormack, CEO of Comparisim most of us already use these more secure SIMs The SIMs used by NFC capable handhelds simply use a 3DES encryption which provides greater security. 3DES implementation has become widespread in light of vulnerabilities recently uncovered with the old DES SIM cards. Most providers have implemented the newer security into the older SIMs via an over-the air update.
Payments are a $4 trillion industry in the US, and this has encouraged nearly all the major US financial institutions to try grab a piece of the pie. Isis is a new entrant, and though it has the backing of major telecom companies, it could be facing stiff competition from big players; Visa, Google and PayPal who have also demonstrated interest in capitalizing on this market.
Jamba Juice is a retail partner of Isis, and its CEO James White expressed optimism about the future of this app. According to him, transactions with digital wallets are more secure and convenient when compared to credit cards. Jamba Juice makes more than 100 million transactions each year, and they have collaborated with Isis to offer its users some exclusive incentives to encourage them to pay with the smartphone.
Isis mobile wallet works with a high-security SIM card, which is only available on select Android smartphones that have NFC. Developers of this app realise that Apple iPhones doesn't have NFC, and thus they are working on a special sleeve, which users can use with iPhones. This is a major initiative by the developers of this app, since nearly half the US smartphones run on iOS platform.
Your Isis app is pin protected and thus you know while shopping that your information is fully secured. However, if you lose your phone or suspect it has been compromised, you can contact your provider to freeze your wallet.
The biggest competition of Isis mobile wallet will not come from other mobile payment solutions, but from plastic credit cards. This fact was emphasized by Abbott, as he stated that Isis will tackle this issue by presenting users with a simpler payment process via their smartphones. In addition it would offer offer real-time account check before they pay. Developers of this app are also trying to offer a more refined way of managing and moving money, as compared to credit cards.
Schulman emphasized that he was very excited about the way Isis would democratize the movement and management of money. He said that the internet would redefine the business markets and generate new avenues, like a digital tornado. Isis has the support of powerful partners that together account for 50% of the US mobile phone market, and that's why the success of this mobile payment option would decide the future course of this highly lucrative business.
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