today the dutch RABO bank introduced a system that enables persons with a (dutch) mobile phone to pay money to each other with sms.
The system works like this.
everybody with a (dutch) mobile phone can open a "digital wallet" and put money on it from his or her bank account.
if you want to make a payment, send an sms with the amount of money and the mobile number to pay to to the RABO bank (which controls the "digital wallets"), and the bank send you a conformation sms with a code, by returning the code the payment is finalized.
people can pay to each other or to companies, for instance parking fees.
the use of the system is free for the rest of the year, but will cost about 0,05 € per transaction next year, (probably).
the system works real time.
what do you think of that,
We need to find easy to use ways forward - this is promising - if the wallet opening is easy enough and if it can be used for often needed payments - like public transport
We have some experience from digital wallets in Finland. Few years backwhen Nordea, Sampo and Elisa attempted to roll out Mobile Cash (Mobiiliraha). It didn't work because you would separately have to manage the wallet and the money was never there when you needed it.
A better way to do this is to have customer to sign up for the service in the eBanking portal and then (possibly ) request him to set some daily limit for mobile purhases. Digital wallet management is requires too much effort.
SMS is good staring point to ramp-up mobile payment services. It works almost every handset in the market so it is possible reach almost all mobile users by using this approach.
I would say there is a need to find ”one click” simple way to do payments with mobile phones to really reach masses. Mobile payment can simplify current payment process in services used many by often (e.g. mass transit, retail, digital services) if user experience is high enough.
I think that maybe the only thing preventing this innovation to spread more is the remaining complexity of it. If you could contact and manage your e-ban services easily and safely through your mobile phone, I would definitely use it. However, I think due to the safety reasons this is not yet happening. Hopefully, the idea is developed further and soon we can manage our accounts directly and easily from our mobiles!
The technology used by Rabobank and Albert Heijn (the biggest Dutch food retail chain) comes from Nokia, called NFC. They write on their page (unfortunately I cannot embed video here):
With NFC (Near Field Communications) technology you can leave your wallet at home...
When buying coffee or a newspaper, you pay by simply holding your mobile out in front of you to a reader on the counter. On public transport - bus, train, and underground - you use your mobile as your ticket. Just touching a poster advertising a concert can enable you to purchase and receive an electronic ticket, delivered instantly to your mobile. NFC can also enable you to share media with your friends - by just touching your devices together, you pair your mobiles and video or photos can be transferred instantaneously.NFC technology enables intuitive, simple and safe interaction between electronic devices. NFC communication is enabled by bringing two NFC compatible devices within a few centimeters of one another or for the two devices to literally touch one another.
When buying coffee or a newspaper, you pay by simply holding your mobile out in front of you to a reader on the counter. On public transport - bus, train, and underground - you use your mobile as your ticket. Just touching a poster advertising a concert can enable you to purchase and receive an electronic ticket, delivered instantly to your mobile.
NFC can also enable you to share media with your friends - by just touching your devices together, you pair your mobiles and video or photos can be transferred instantaneously.
NFC technology enables intuitive, simple and safe interaction between electronic devices. NFC communication is enabled by bringing two NFC compatible devices within a few centimeters of one another or for the two devices to literally touch one another.
JG: Due to the proximity it is safer than bluetooth, because of the shorter range it is harder to intercept.
You can already use NFC services using the Nokia 6212 Classic and Nokia 6131 NFC. Nokia's range of devices supporting NFC will grow over the coming years. Nokia is also actively participating in NFC commercial projects and trials in Europe, North America and Asia. In Austria, Mobilkom is using Nokia devices for transport and payments. In the US, you can use a contactless card or your NFC mobile equipped with contactless card or ticketing application (that is loaded onto the secure element either on the phone or its SIM card) at 80 000 MasterCard PayPass accepting location. In, the UK, at Manchester City FC stadium you can use your mobile as your season ticket. In China, you can use your Nokia NFC mobile in Beijing, Xiamen and Guangzhou to buy transit tickets and pay for shopping at department stores.
You can already use NFC services using the Nokia 6212 Classic and Nokia 6131 NFC. Nokia's range of devices supporting NFC will grow over the coming years.
Nokia is also actively participating in NFC commercial projects and trials in Europe, North America and Asia. In Austria, Mobilkom is using Nokia devices for transport and payments. In the US, you can use a contactless card or your NFC mobile equipped with contactless card or ticketing application (that is loaded onto the secure element either on the phone or its SIM card) at 80 000 MasterCard PayPass accepting location. In, the UK, at Manchester City FC stadium you can use your mobile as your season ticket. In China, you can use your Nokia NFC mobile in Beijing, Xiamen and Guangzhou to buy transit tickets and pay for shopping at department stores.
JG: Tags can be programmed by the user. So I could for instance program a shortcut to my alrm clock on the tag I attach to my night stand.
How does this work?NFC is a short-range wireless communication technology, which enables the exchange of data between devices over a few centimeters distance. NFC relies on the principle of inductive coupling - the ability of one device to create a current flow in the target device.NFC mobiles can read tags, for example by touching a smart poster with your mobile and it automatically downloads information like web links or telephone numbers, or even enables you to purchase the advertized item. The mobile emits a short-range radio signal that powers up a microchip on the tag, and allows for reading a small amount of data that can be stored on the tag. Mobiles with NFC can also act as an NFC tag, for example, contactless smart card for payments replacing your credit card or electronic transport ticket.Two NFC enabled mobiles can talk to each others by simply touching them together. They can then exchange data, for example business cards, or can exchange Bluetooth or WLAN parameters to set up a faster data link for transferring files, for example video or photos.NFC is standardized under ISO18092. It is optimized for local proximity transactions and handovers to other connectivity bearers including Bluetooth and Wireless LAN. The technology is globally available in 13.56 MHz range with data exchange rate between 106 and 424 kbps. NFC is also compatible with ISO14443 contactless payment and ticketing card infrastructures.To find out more about NFC visit the NFC Forum or to start developing NFC applications for Nokia's NFC enabled devices visit Forum Nokia.
How does this work?
NFC is a short-range wireless communication technology, which enables the exchange of data between devices over a few centimeters distance. NFC relies on the principle of inductive coupling - the ability of one device to create a current flow in the target device.
NFC mobiles can read tags, for example by touching a smart poster with your mobile and it automatically downloads information like web links or telephone numbers, or even enables you to purchase the advertized item. The mobile emits a short-range radio signal that powers up a microchip on the tag, and allows for reading a small amount of data that can be stored on the tag.
Mobiles with NFC can also act as an NFC tag, for example, contactless smart card for payments replacing your credit card or electronic transport ticket.
Two NFC enabled mobiles can talk to each others by simply touching them together. They can then exchange data, for example business cards, or can exchange Bluetooth or WLAN parameters to set up a faster data link for transferring files, for example video or photos.
NFC is standardized under ISO18092. It is optimized for local proximity transactions and handovers to other connectivity bearers including Bluetooth and Wireless LAN. The technology is globally available in 13.56 MHz range with data exchange rate between 106 and 424 kbps. NFC is also compatible with ISO14443 contactless payment and ticketing card infrastructures.
To find out more about NFC visit the NFC Forum or to start developing NFC applications for Nokia's NFC enabled devices visit Forum Nokia.
JG: There is a sea of opportunities in this technology, a real killerapp has however not yet been developed.
the above described use of the near field communication (NFC) are experiments that are done on a small scale in some villages, the sms mobile wallet is a national system that works via sms, not NFC
