Mobile Money

Written by The Financial Express | Updated: Feb 28 2013, 05:55am hrs
Making payments using your phone is likely to become a much more ubiquitous phenomenon than ever before. A global agreement between Samsung and Visa, announced at the Mobile World Congress in Barcelona, stands to not only change the face of mobile payments (and the near field communication technology it is based on), but also extend its reach well beyond what previous attempts have achieved. The agreement between the two companies brings together the largest phone maker in the world by volume, with a company that has already established its name in NFC technology via initiatives in Europe, the UK and the US. The plan is that Samsung phones loaded with NFC hardware and Visas proprietary software will be able to interact with Visa receivers or dongles placed in shopspayments can be made through this interaction.

The most obvious advantage of such a system is the convenience of needing neither physical cash nor debit cards to make transactionsyou just wave your phone, and the payment is done. But, the deal also simplifies a process that has been in the works for a long time, but has met little success so far. AT&T, T-Mobile and Verizon, for example, started a similar initiative, but it required a brand new SIM card to ensure secure transactions. Visas secure software does away with this extra step. Mobile money is not too far away.