MWC 2013: Samsung Deal With Visa Allows Payments Just by Waving Smartphone Near Special Reader
By Vittorio Hernandez | February 26, 2013 12:49 PM EST
Samsung smartphone owners would soon be able to make payments for their purchases by merely waving their units near a special reader. The privilege would be open to owners of smartphones with the Near Field Communication (NFC) technology that allows a phone to transmit information to a nearby reader without touching the reader.
U.S. credit card giant Visa announced at the ongoing Mobile World Congress in Barcelona, Spain, the deal with Samsung, expected to further boost the use of smartphones to pay for items without the need for a cash or credit cards, which are vulnerable to hacking.
Samsung would equip the next generation of its smartphones with the Visa payment technology, including pre-loading the Visa payWave, Visa's contactless payment system, as an applet. It would allow banks to send payment account information over the airwaves to a secure microchip embedded in the smartphone, In turn, banks will use a secure system that relies on Visa's Mobile Provisioning Service and the South Korean tech firm's key management system.
The payWave is used at AT&T, Verizon Wireless, T-Mobile and GoogleWallet.
An ABI Research forecast that by 2017, 1.95 billion NFC-enable devices would be shipped to different markets. However, the success of the Visa-Samsung deal would be dependent on banks being persuaded to give the new technology a try.
However, eBay, a subsidiary of PayPal, which could be affected by the new technology, thinks it may not be too useful.
"I think NFC is just a technology in search of a problem to fix that does not exist because it is really easy to pay in the store," said eBay President David Marcus.
Also on Monday, MasterCard, the competitor of Visa, announced it would expand its digital wallet services beyond NFC which would allow shoppers to use QR codes, credit cards and other technologies.
To contact the editor, e-mail:
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Google Release Roundup: New Nexus 6, Nexus 8, Android 5.0 L Launch and Killer Features
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- New Zealand Could Be Next ISIS Target After Australia Beheading Plot, Says Expert
- China Is Also Seizing Disputed Land Along Indian Border