Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

NFC uptake accelerating: Visa

However, uptake has been gradual due to lack of contactless infrastructure and security concerns

Despite some security loopholes remaining, near field communications technology is gaining a foothold in Australia, according to Visa A/NZ.

NFC, which enables data exchanges and transactions to be made between two devices within close range to each other, is expected to be more widely used for contactless payments.

The technology will allow consumers with an NFC-enabled smartphone containing their credit or debit card details to make purchases with a wave or tap of their phone on a card reader.

“We think it’s a disruptive technology, in terms of plastic cards for payments,” said Ben Pfisterer, Visa’s director of innovation & emerging products, Australia and New Zealand speaking at a recent panel on near field communication.

“We think there could be an end to those as credit cards move towards inside the phone.

“Obviously, that will take years to happen, but we really feel that there’s no need for plastic anymore with NFC because it will be more secure in the phone.”

Pfisterer attributes the growing penetration of NFC to consumer and merchant demand for the technology, with big retailers including 7-Eleven, Bunnings, Caltex, McDonald’s, Woolworths and most recently Coles to have rolled out contactless facilities.

“It’s not just about the consumers,” he said.

“We think the consumer value property is significant but also... are handset vendors, telcos, and also merchants.

“Whilst the technology is starting to merge, [merchants] are getting ready for that.”

However, according to Pfisterer, the uptake of NFC payment systems has been gradual, which is largely due to the lack of contactless infrastructure and consumer wariness about its security merits.

Despite such security concerns, Westpac and Visa Australia representatives last month said that NFC technology is here to stay.

The statements follow on from Research In Motion’s partnership with Sydney-based NFC company Tapit to promote the use of NFC technology in mobile devices.

In October, RIM announced MasterCard Worldwide had approved its BlackBerry Bold 9900 and BlackBerry Curve 9360 smartphones as PayPass devices — the first SIM-based, NFC-enabled smartphones to be certified for PayPass.

Follow Diana Nguyen on Twitter: @diananguyen9

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: BlackBerry, Caltex, Motion, NFC, Research In Motion, RIM, Visa, Westpac, Westpac, Woolworths
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Ben Pfisterer, credit cards, Near Field Communications (NFC), security
Latest Blog Posts
Whitepapers
  • Government Communications 2.0
    The problem with data is that it’s only useful if you share and use it. Equally, the more data we share electronically, the greater the risk of it falling into the wrong hands. Public sector organisations can’t function without legitimately gathering and using personal information about the citizens they are mandated to serve. Technology has made a significant contribution to that process, but has also brought new risks. Read on.
    Learn more »
  • Forrester Research | Your Enterprise Database Security Strategy 2010
    With increasingly sophisticated attacks and rising internal data theft, database security merits a stronger focus that goes beyond traditional authentication, authorization, and access control. Learn how to secure your database - Read this strategy guide.
    Learn more »
  • Control your Print Environment
    In your ongoing quest to maximize productivity and drive down costs, you might be surprised by the savings and greater competitive advantage you can achieve with a fully optimised and well-managed printing and imaging environment. In fact, studies have shown that managing your fleet holistically can save you upwards of 30% on your printing costs. And the savings increase exponentially when the scope of work includes automating your paper intensive workflows. Read more.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.