Bank of New Zealand has launched a trial of a phone with an embedded chip that is able to make payments by swiping the phone against a card reader.
The three month trial is being done by 44 BNZ and Vodafone staff using a Samsung Galaxy S2 phone with a Near Field Communication (NFC) chip, similar to one used by Google in its Google Wallet trial in America.
The trial is using a system set up in conjunction with Visa and Paymark, BNZ said.
The payment card's data is stored on a secure chip embedded into the SIM card inside an NFC enabled phone, which means triallists can replace their regular plastic payment card with their phone.
“What we’re testing here is the viability of a true, mobile wallet that will eventually allow people to replace multiple pieces of plastic with functionality embedded inside their phone. It’s going to make smartphones even smarter,” said Paul Tait, BNZ’s Head of Channels Innovation.
There are other contactless payment systems around that are on credit or debit cards, but this is different because the NFC chip is in the phone, rather than on the case of the phone, on a credit card, or on a sticker outside the phone.
“Think of what you carry around in your wallet today – credit and debit cards, loyalty cards, building access cards – and imagine most of that functionality on your smartphone."
"This just the beginning of what we can bring to Vodafone customers," said Zac Summers, Vodafone’s Chief Strategy Officer.
Triallists can use an app on their smartphone to view their transactions, which are updated in real time.
(Updated with brief video above supplied by BNZ)
9 Comments
Agreed, there are limitations. There would need to be a "manual over-ride" option. I meant the one device as a convenience, not a complete replacement.
Having said that, the contactless chips do not require power, and I've certainly never run out of petrol in my life - and never will!
What is to stop someone stealing your phone and doing the rounds of the local shops? Why don't they just imbed a microchip in your wrist? Better yet, your head? Imagine the potential of a chip hooked up to your optic nerve. 24/7 advertising you can't get away from, ability to track your preferences, what particular things catch your eye.... Just joking, but where do we draw the line with technology? The older I get, the more I like the crinkle of cash in my wallet, regardless of it's fiat value.
I recently got a paypass card from ASB which supports tap to buy and asked it to be removed and was told it can't be. The system only helps the card suppliers, I reckon they are doing it for two reasons, they are making the cards really difficult to copy and they are reducing the need for instant authorisation for all small demonination transactions (<$80) thus reducing there transactional overheads. (Doesn't solve internet fraud at all!)
What does it do for us - makes things quicker, but just consider the scenario where you loose your card/phone and don't realise. Someone finds it goes on a binge around town tapping $80 at every terminal they see. This will not be flagged by the banks as out of the ordinary activity and they won't stop it. My question is - who will be responsible for those transactions.....just watch the small print coming out of the draw!
When those terminals become prevolant I'm leaving the credit cards in the safe for special occasions!
Be warned trusting people! ;-)
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