Академический Документы
Профессиональный Документы
Культура Документы
Presented to:
Introduction
Near Field Communication, or NFC, has been around since 2003. Along with Bluetooth, NFC is a short-range communication technology based on existing radio-frequency identification (RFID) standards. This technology can be integrated into mobile phones to support two-way communication between devices a few feet away. NFC can thus be used in contactless payment systems NFC technology holds a potential threat to credit card companies by making it easier for consumers to process payments by phone. Operating on wireless frequencies, NFC can connect a shoppers smart phone to a nearby receiver. NFC-enabled smart phones dont have to be set up in advance to communicate with each other. A customer with an NFC-enabled phone and a retailer with a receiver can connect instantly whenever they are within a few feet range of each other. Google is already experimenting with the technology with its Google Wallet, a mobile digital wallet that allows users to store credit card information on an NFC-enabled device through its own Android platform. Apple is planning to let users make payments using the iPhone to effectively bypass Visa, MasterCard, and American Express. Over the next few years, distribution of NFC-enabled phones is expected to rise more than five-fold, to at least 500 million phones by 2015, according to an Electronics Weekly article. The NFC technology is not limited to payment processing. In fact, the biggest potential data source for marketing can come from a digital wallet that processes the information about purchases into a database of consumer information.
This could turn into a source for comparison shopping or a headache for consumers as marketers deliver their relevant, engaging messaging and, perhaps most importantly, compelling offers and promotions to consumers, according to Darus Zahm, Vice President and account manager at Target Cost. That degree of personalized messaging, directly informed by purchase behavior and media consumption, has the ability to creep out consumers. As weve seen in the online space, the key to minimizing that creepy-factor is being completely transparent and providing consumers with control over their data and what they elect to share.
"payWave" system will ask the tag embedded in a Visa credit card for the card number and expiration date. The card, if it is designed to respond to that request, will transmit the information back to the reader. Once the requested data is transmitted, the tag or reader might request additional data or commands. As long as the reader and tag are in close proximity, these data exchanges can occur. Once data has been exchanged according to either the reader's or tag's design, the connection can be terminated. Alternately, moving the two devices away from each other will also break the connection. In our payWave example, once the reader has the requested credit card information, it will break its connection with the card and begin a transaction authorization. This type of RFID technology is employed in the MIFARE-based cards that are widely used for transit systems and secure building access, biometric passports, and contactless payment systems like payWave and Mastercard's PayPass. Sony developed a similar platform for contactless payments called FeliCa, widely used in Asia. FeliCa-based cards are used for transit systems and security access, as well as contactless payment systems. Incorporation of FeliCa technology in mobile phones in Japan led to the system becoming a de facto mobile payment standard there, with customers able to pay for parking, train fare, vending machine items, and more using a FeliCa-equipped handset. FeliCa uses a slightly different variation of Manchester coding than Type B RFID communication, but similar communication protocols are employed. Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or 424kBps. FeliCa has been accepted as a standard in Japan, dubbed JIS X 6319-4.
opportunity. Retailers might be enticed away if it was cheaper for them to process the payments. However, banks and credit card companies are also busy working out their own options. What Google and Apple learn from their limited tests of NFC technology will have a major impact on whether this phone technology will replace the current plastic card in peoples wallets!
Sources