INFORMATION TECHNOLOGY

Information Technology



Executive Summary

In this study we try to explore the concept of payment by phones in a holistic context. The main focus of the research is on payment by phones and its introduction in the United Kingdom. The research also analyzes the process, benefits and implication of payment by phones system in today's world. The study has concluded that payment by phones is gaining familiarity today due to its benefits and ease of use as it is evident that huge businesses like Google are implementing payment by phones in their business processes.

Table of Contents

Introduction4

What is NFC?4

Large Companies Are Betting On This Technology4

Other Uses of NFC5

Chase Bank: Case Study in the U.S.5

Benefits of NFC5

How Does It Work Exactly?6

Finding and Analysis6

It is creating a new market: payment by mobile phone7

Pay-by-phone in UK8

Conclusion11

References12

Information Technology

Introduction

NFC stands for the Near Field Communication. The NFC enables instant payments with just bring the phone to a collection device.

What is NFC?

Near Field Communication, is a wireless technology (RFID) that enables the exchange of data between 2 devices and the distance (mm, cm, and m) depends on the power and frequency used. Devices that can have that capacity is Smartphone, which can exchange data with other devices and other Smartphone that have active NFC (Robbins Parking Services 2004, pp. 39). NFC technology is no substitute for Bluetooth technology or Wi-Fi, by contrast, is complementary, and that technology is a short-range communication, and mass data transfer.

Large Companies Are Betting On This Technology

Companies like Google, Apple, Telefonica, Visa and MasterCard have chosen this technology as a crucial factor in turning the phone into a means of payment. The key handset manufacturers are working hard to incorporate this technology into their devices. Some companies are working on the subject are:

A.Leading mobile operators worldwide.

B.Major Banks.

C.Renowned manufacturers of smart phones.

D.The tech giants like Google, whose Google wallet has joined the initiative.

Other Uses of NFC

Although the most popular implementation of Near Field Communicator is the development of Digital wallets on mobile phones, NFC has many more applications. Some examples are:

A.Loyalty through discounts (e.g. various Google wallet will offer discounts at various stores)

B.Use in tourism: In some companies, in Spain, visitors can access a mobile device that provides them with the tourism agency, which will allow information on the site you visit, get discounts in stores, access to museums and other things.

Chase Bank: Case Study in the U.S.

Chase bank has been issuing credit and debit cards with wireless technology from 2005 through blink. Blink is the Chase bank technology used to manage their payments by cards that work with NFC technology (BILTON 2010, pp. 24). According to the bank for some traders with NFC sales are 40% higher than sales for cash and very important for consumers because it reduces the time it takes for a transaction.

Benefits of NFC

Many businesses can benefit from NFC as follows:

A.Increasing sales

B.Improving operating efficiency

C.Operating cost savings

It is essential to emphasize the importance of strengthening and acceptance of the mobile channel as an important form of payment, communication and ...