Goodbye Wallets: How Mobile Phones Are Becoming the New Credit Card

Goodbye Wallets! How Mobile Phones Are Becoming The New Credit Card Money has evolved several times in human history: barter, coins, paper, plastic, and now, phones? It's true-commerce is the next major advancement in mobile technology. Through the use of 'near field communication' (NFC) chips, several companies are about to revolutionize the way we shop, replacing our wallets with our smartphones. THE GROWING MOBILE PAYMENTS MARKET Mobile payment transactions already total $240 billion annually, but that's just the tip of the iceberg. Juniper Research reports that the market will grow 2x to 3x in the next 5 years. By 2013: By 2014: By 2015: Sales of NFC equipped NFC transactions alone will approach The value of all mobile money phones will exceed transactions is expected to reach $50 billion. $75 billion. $670 billion. Google predicts Digital goods will make up that 50% nearly 40% of this market. Asia, of cell phones will Western Europe and North America use NFC technology. will be responsible for 75% of all 1 in 5 cell phones worldwide mobile payment transactions. will use NFC technology. The race is on between mobile technology companies to get their devices to market, but who will be the dominant provider in the mobile payment space? THE CONTENDERS $$$$$ PAYMENT NETWORK MARKET TECHNOLOGY PROS CONS PARTNERS The premiere mobile payment Google Wallet will sync with Google Offers, allowing The Nexus S 4G No mention of Google, Citi, is already support for Visa. No mention of MasterCard, First platform for Data, and Sprint. Google wallet shipping with NFC chips that Android phone you to take your iPhone support. users. will interface with coupons and Google Wallet savings with you as you shop. when it launches. ISIS was founded Will run on any ISIS is working on No support ISIS Discover, as a coalition NFC enabled a mobile wallet for Sprint. MasterCard, between AT&T, device supported system that could and Visa Verizon Wireless by the three store multiple and T-Mobile. carriers. credit and debit cards, and allow users to pay with any of them. Visa's 50+ years VISA The digital wallet is Will run on most No mention of Visa, and 14 expected to handle smart devices, experience in support for additional banks (Visa Wallet) multiple cards and and can make payment MasterCard, and financial payment options use of NFC If processing. Discover, or Amex. service providers through many available. financial networks. American Express Will primarily run on the Payfone, a Can send money American Express financial network, $2.00 fee for serve using an ATM to withdraw money customers securely between mobile-commerce two devices. Visa, MasterCard, by American centered device from a Serve Discover, and Express backed by Amex. account. debit cards. HOW NEAR FIELD COMMUNICATION (NFC) WORKS PAID ....... NFC allows for a simple data NFC requires an The initiator generates a The target picks up the exchange between two devices initiator and a target: radio frequency (RF) field RE field and receives by way of a physical touch. with a range of about the data it contains. 4 centimeters. G+ SOURCES: gplus.com GW-PRESS.APPSPOT.COM | GOOGLE.COM/WALLET | VENTUREBEAT.COM | FASTCOMPANY.COM FASTCOMPANY.COM | TECHCRUNCH.COM | NFCRUMORS.COM | GIGAOM | JUNIPER RESEARCH www.twitter.com/gplus www.facebook.com/gplus