DailyTech - Near Field Communication Technology Turns Cell Phones into "Debit Cards"

Submit News

Internet Near Field Communication Technology Turns Cell Phones into "Debit Cards"
Samad Khan (Blog) - April 21, 2006 1:25 AM

E-mail

del.icio.us

11 comment(s) - last by peternelson.. on Apr 23 at 8:30 AM

Convenience just a phone swipe away. How would you like to use your phone as your train fare card or a discount card at a local attraction?

Nokia along with Royal Philips Electronics, Vodafone and the Rhein-Main-Verkehrsverbund (RMV), the regional public transport authority for the Frankfurt Rhine-Main Region in Germany, announced that Near Field Communication (NFC) technology will be deployed in a commercial environment. This comes on the heels of a successful ten-month field test.

Nokia 3220 phones with integrated NFC technology will be used as electronic bus tickets and act as discount cards for retail outlets and attractions. All 95,000 residents of the City of Hanau, Germany will enjoy the ease and convenience of NFC for mobile ticketing in public transportation by a simple swipe of their phone. This feature will also enable mobile phones to receive discounts at RMV's 14 selected retail partners in the area including restaurants, shops and local attractions.

Since most people carry their phones with them everywhere they go, this idea of incorporating services offers great value and convenience to users. Initial testing of the NFC enabled Nokia 3220 mobile phones by Hanau’s residents has shown positive results with 90% of the trial participants finding this to be a positive, convenient system worth continuing. Success with this can prompt other similar ideas and offerings.

With RFIDs in passports and credit cards, it really does not seem too far fetched that one day your cell phone will become your wallet.

Comments

Threshold

Username
Password
remember me

This article is over a month old, voting and posting comments is disabled

Security issues?

By brystmar on 4/21/2006 3:00:00 AM , Rating: 2

so what happens when you lose your phone and someone uses it to buy a ton of stuff using your debit account?

RE: Security issues?

By jkostans on 4/21/2006 9:52:20 AM , Rating: 2

What happens when you lose your debit card? I'm guessing you would have a pin. Plus, once you lose it, you call an deactivate it like a credit/debit card. I don't see any more risk wiht this than the current plastic everyone carries now.

Parent

RE: Security issues?

By josedawg on 4/21/2006 11:10:10 AM , Rating: 3

But how would you call if your phone is stolen!!!

Parent

RE: Security issues?

By rushfan2006 on 4/21/2006 11:20:56 AM , Rating: 2

quote:
What happens when you lose your debit card? I'm guessing you would have a pin. Plus, once you lose it, you call an deactivate it like a credit/debit card. I don't see any more risk wiht this than the current plastic everyone carries now.

If you don't see anymore risk with this than just your plastic, I don't think you are putting enough thought into it. There is definitely more risk if everything is in your cellphone. I use a farfetched "really geeky" example and common everyday example....

Commone example: I'm mugged..they steal my wallet (most common thing stolen if mugged obviously) - its dark, its after midnight..therefore not to many people around. I have a good chance of still having my cell phone - I could of left it in my car, or maybe the criminals just didn't have interest in taking it. I can still use it to call A) The cops ASAP, B) My family/friends to let them know what happened and I'm ok and C) My bank/credit card companies to immediately report my cards as stolen on the spot.

This goes mainstream and everything is in your cell and your cell is now your ATM/Credit card -- obviously criminals will be going after your cell phone now knowing that everythign is tied to it. Now I'm SOL to call the cops right away, now instead I have to go through the hassle of deactivating not only a credit card account but my cell phone service (after all want to cut off the service so as to not allow the criminals to use such services), based on current poor service of most cell phone companies how long will I have to wait for new service activation? How much red tape and BS paperwork will I need to fill out / go through, etc. With my bank as it stands...my check card gets stolen -- in 5 minutes I can render it useless to anyone AND the next day new one will be in the my mail box waiting for me to activate. The process is painless and fast.

Now the geeky reason why I see a security risk...my atm card doesn't transmit. I'm sure someone in the future will do something stupid and say "hey lets put computer chips in ATM cards" -- I think that's retarded, but for now it doesn't. My cell phone would leave me feeling like a signal could be sent to communicate with the banking card/credit card function of it -- leading me to suspect someone could hack it somehow. Of course standard credit card accounts get hacked, but just like the old saying goes on security (physical or digital) the idea of being smart on security isn't the false pretense that it is 100% secured, its on the pretense of making it as hard and as troublesome as possible to crack. On that theory, its more of a bother to hack into a regular plastic credit card account the standard way then it is to hack into a "mobile credit card that transmits all the time or has capacity to transmit".

Finally, the plain joe simple reason -- It just plain old makes me un easy how society is edging more and more to integration. The more we are depended on a single device the less secure we really are.

Parent

RE: Security issues?

By IsDanReally on 4/21/2006 11:31:30 AM , Rating: 2

You didn't enough thought into it either...simply having a PIN number would make a stolen phone useless, except to make phone calls. Granted criminals might steal it anyways, since they are not always the brightest individuals. Also, hacking plastic isn't hard...pay some Russian $10 a card number and encode them onto a card. No need to hack the card when people steal millions of cards info.

Parent

RE: Security issues?

By rushfan2006 on 4/21/2006 3:22:25 PM , Rating: 2

quote:
You didn't enough thought into it either...simply having a PIN number would make a stolen phone useless, except to make phone calls. Granted criminals might steal it anyways, since they are not always the brightest individuals.

Hmmm...lets see make Cell phones debit cards -- this increases the "value" of stealing a cell phone in the eyes of a criminal......yeah because its much cheaper if my $300 cell phone is stolen then my wallet (since I never carry more than $50 of "paper money" anyway) with a credit card is stolen....in both cases you'd have to worry about ID theft and cancelling the information so there's no difference there. AND it's still more junk to worry about. Right now, I just have to worry about my wallet when I go out....now with this technology now let me worry about the information in my wallet AND the information in my cell phone (financial information for you following along with the home game).

quote:
Also, hacking plastic isn't hard...pay some Russian $10 a card number and encode them onto a card. No need to hack the card when people steal millions of cards info.

I never said it was hard. I'm saying lets not make it easier. Furthermore you took didn't get my point about I don't believe its a good idea how reliant we are getting on integration for all personal and financial data...they are one stop shops for stealing our money, our ID and god knows what else people will do with this stuff in the wrong hands.

If your argument is well you carry a wallet don't you with your SSN, Driver's License and credit card...you'd be right EXCEPT I have a HECK of alot more control over my wallet (which btw, I never put cards I don't need in there 24/7 -- ie no SSN card, I only have a check/atm card and if you want to steal my health insurance card feel free..LOL) for one its always with me -- some times my cell isn't...not all of us want the hassle of baby sitting our "devices"...a small leather wallet is simple..put it your front pocket and forget about it until needed.

So YES actually I have thought about it...your points do not disuade my thoughts at all...I stand by POV on this.

Parent

RE: Security issues?

By TomZ on 4/21/2006 12:46:15 PM , Rating: 2

Just carry two cell phones. :o)

Actually, that would work for wallets, too. If you carried two wallets, one real and one a decoy, when you get mugged, just give the guy your decoy wallet.

Parent

RE: Security issues?

By josedawg on 4/21/2006 4:56:29 PM , Rating: 2

So you give the crook the fake cell phone, and after he runs away, you call him and go "wrong phone sucka! MUAHAHHAHAHAHA" ?

Parent

RE: Security issues?

By peternelson on 4/23/2006 8:30:10 AM , Rating: 2

ROFL.

Pretty expensive way to have a laugh though.

More seriously, if you're bothered about security and hassle of a pin, how about the phone incorporating one of those fingerprint readers like some modern laptops have. Just swipe your finger across the phone to authorise. Without that it doesn't operate? Problem solved, unless they steal your finger too.

Parent

It's been in practice for a while in Korea

By Doh! on 4/21/2006 2:46:44 AM , Rating: 2

In S.Korea, a mobile phone is used as an online-banking, tickets to subway, city buses, taxi fares, and all major retail stores/restaurants. You can even use it as a key to your house. It can also check your vital health signs (ie., sugar level w/ a add-on kit), send the results to your doctor for a review. It functions as a remote control to your tv,vcr,cable,satelite,stereo, etc. All these features been around for at least a couple of years.