Here comes interesting news about NFC chips, instead of using your credit card to purchase your goods, in very soon you can use your Mobile phone as your credit card. All you have to do is just to wave your mobile phone close to a device that reads your bank details, which makes the payment for the goods purchased. All this can be happen with the help of the NFC chips.
NFC chips
Near Field Communications (NFC) chips turns a mobile phone into a credit card (electronic wallet).
As you are aware, rumors with regard to Apple featuring NFC technology for its next generation iPhone 5. However, no words or confirmation from the company till now but the rumors are spreading so on.
According to the reports, Google is said to tie up its hands with MasterCard and Citigroup, to give a trial to the contactless payments in US on smartphones running the Android operating system. Although, Googles involvement into mobile payments is in fact an attempt to enhance the companys advertising business, as Google will not get any transaction fees for the transactions.
But it is a simple business strategy, where in Google will be able to offer retailers extra information regarding their customers and helps the retailers to understand and target their customers very easily. Although, Google will charge money for the advertisements!
Having imminent into consumer-spending procedures, Google is planning to offer their services to Groupon, Facebook or Yelp websites; who would be very much interested in such data.
While, according to a mobile-transactions analyst at Yankee Group, Nick Holland who stated that because of its contact-less theres a perception people can grab it from thin air, but its actually a more sophisticated technology than credit cards with a magnetic stripe, making it more difficult to steal a consumers payment information.
In America there are nearly 70 million contact-less devices which includes credit and debit cards. While, closely 150,000 contact-less readers to process payments and there is no need to get startled if the market for mobile payments reach a huge $618 billions by 2016. If this is the case, for sure Google, Apple or RIM would have one or at least have their hand on it.
Finally, if the experiment version of Google with MasterCard and Citigroup proves success, then there would be a huge competition and simultaneously many banks or card providers would adopt the NFC technology.
Be wired to know more updates on Googles experiments on NFC Technology
