Wednesday, May 11, 2011

VISA To Get Ball Rolling On Mobile Payments This Fall

Looks like VISA is taking the initiative and setting up an NFC payment network.  Hey, someone has to and as I've mentioned in the past, it would likely take VISA or Mastercard to get involved to move things along  

What is also cool is that VISA should get a lot of banks onboard and has a few tricks up its sleeve that might make it easier for people to trust it.  After all, security and privacy is going to be a big big issue from now on.  

What will it potentially involve?

  • Multiple payment systems.  It does not necessarily have to be VISA credit cards.
  • dynamic authentication for security purposes.
  • NFC abilities on credit cards.  It means you don't need a mobile or phone.  This could also mean that any device with NFC capability without phone functions, like iPod touches, can be used to make mobile payments.
  • Services to be available on the fall for the US and Canada - why not Mexico?!
  • Can involve opt-in deals for merchants.
Two things I like to add.  Social networks and privacy.  I'm not a big Facebook fan with regards to their privacy.  I like to see social network aspects added to the NFC network that VISA is creating here or anyone else who might develop their own.  

Groupon, LivingSocial, Gowalla, Yelp, Foursquare should also be involved one way or another.  Even Twitter.  However, privacy should be the most important aspect of social functions and NFC.  It ought to be opt in and just because a consumer wants a deal doesn't mean that he or she has to give up their live stories to anyone.  Otherwise, you can forget about it.  

Pretty excited about this.  Big time.  This is one of the first networks and I'm sure we'll hear from other credit card companies, the mobile device makers, and banks.  Just the beginning.

More at Electronista.

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