Near Field Communications (NFC) Changes Credit and Debit Cards

As the world’s leading credit card organization, Visa’s very powerful brand could lead to rapid growth in mobile payments if it offers compelling services via near field technology (NFC). Visa’s “payWave” technology enables card holders to pay at the cash register with a wave of a special credit card. Consumers are alerted to cash registers that use payWave by a unique logo at the register. They have the option of receiving a printed receipt, and enjoy Visa’s zero consumer liability policy for unauthorized purchases if the card is lost or stolen.

NFC is similar to RFID, but can offer the advantage of two-way communications between devices. In the credit and debit card business, this is often referred to as contactless payment, waveable cards or tap and go. This means that consumers can simply wave the credit card past a reader—rather than rely on the swiping of a magnetic strip. The chip in each card uses encryption technology to deter theft and fraud. The idea is to speed up cash register lines and make things more convenient for consumers. For example, it is a practical technology for purchases at fast food counters, toll booths and vending machines. Signatures will not be required for small purchases made with these cards. Of course, ExxonMobil has been offering its contactless SpeedPass payment system at the gasoline pump for years, and millions of ExxonMobil card holders are enthusiastic users.

American Express offers “ExpressPay” contactless technology. Visa’s system is called “Visa payWave.” MasterCard has developed the “PayPass” NFC service in credit cards and debit cards. Generally, these technologies rely on an open software architecture that is easy for programmers to adopt.

NFC Sensors Will Revolutionize Monitoring of Goods and Patients

Oslo, Norway-based Thinfilm, a leader in printable thin electronic sensor and ID technology, suggests the following types of applications for NFC sensor monitoring:

· Temperature exposure of perishable goods such as food and pharmaceuticals can be verified.

· Disposable medical tests can be distributed to remote clinics and homes, with results communicated to medical records through a mobile device.

· Smart appliances can re-order supplies when quantities are getting low.

· Patients can be monitored with one-time use devices for blood-oxygen levels, pulse readings, and other vital signs. Data is gathered with the tap of a phone.

Another technology, called host card emulation (HCE), retrieves stored credit card information from the cloud, making extra security unnecessary. Visa and MasterCard have approved cards using HCE, and it is built into the latest Android systems.

BMO Harris Bank, a unit of the Bank of Montreal, launched an NFC feature in which users enter a withdrawal amount on a cellphone app which generates a code called a QR code to the phone. The user then approaches an enabled ATM, presses a mobile cash button on the machine and places the phone with the QR code near a scanner to have the money dispensed. The bank promised transactions of 15 seconds compared to the usual 45 second average for a debit card withdrawal in addition to increased security.

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