November 7,
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Nowadays in Japan, there is no need to carry wallet with you when you go shopping or ride a train. The only thing you need is your cell phone. “Invisible money” which is called “electric money” has widely spread all over Europe and Asia.
The Japan's largest mobile phone service provider, DoCoMo, became the world's first mobile phone operator to offer its own branded platform for mobile phones incorporating a credit card and a contactless payment capability. It utilise Japanese software vendor Sony's FeliCa near field communications system. The FeliCa chip enables mobile devices to store multiple forms of data including bank account numbers and balances, credit account information, transport service passes and personal identification. The FeliCa system was first adopted by East Japan Railway in November 2001 for its Suica contactless transit card and now Moble Suica has appeared in early 2007. Stated quite simply, it is like there is a “credit card” and “Smart Trip” inside your cell phone. In Moblie suica, process will be conducted as follows. First, holder have to "charge" e-money to cards before using them and how much they can pay with the cards depends on how much they have charged them. The electronic money which is charged to a mobile telephone will be settled an account by the credit card which holder registered. After, you charge it, you just put your cell phone above the receiver and it will settle account immediately which is about 0.1 second.
However, there is a security problem. When registering the credit card, all you need is holder’s name, birthdates, and credit card information such as card number. In this registering process, you don’t need your PIN number. And there is a possibility that people abuse the card information that they obtained illegally and register since only one part of the information of the card company being collated with member information.
As mentioned above e-money has been widely spread all over Japan, but not in U.S. yet. However, this is likely to change in a very near future. On Nov 7, Sony Corp. said it has inked a deal allowing U.S. education systems developer Blackboard Inc. to use "FeliCa" contact-free integrated circuit chips in its student identification card system. Blackboard's current student ID card system, dubbed Blackboard Commerce Suite, uses magnetic cards; however, by using Felica IC chips, Blackboard will be able to add electronic money functions to the cards.
With this, using e-money will be common among the university student. The biggest issue to popularize e-money would be advance of security problem and establishment of receiver. Even though the Blackboard supply card with e-money function, you need a receiver to use it. Therefore they should increase the company number which adopts e-money. I think that the faster the problem (security, receiver etc) will be dissolved, the sooner the life without wallet will become reality in U.S.
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3 comments:
I think Junichi has really hit the nail on the head here in recognizing that privacy will be a significant challenge. Just think about when you load Eaglebucks on your ID- if you lose it, anyone could use your card. Smart cards have been more widely accepted outside of the US. Most of the origins were associated with "float" in the payment system and it will continue to take time to wean Americans to using the card-based technologies.
Junichi,
My only concern with the use of this technology is what if someone stole your ID. Do they even need to know your birthday in order to make transactions on the card?? I think the potential convenience of this product is amazing!! There must some sort of additional security placed onto this product such possibly using biometric security, such as fingerprint swiping as well. This would be the most ideal form of security to be attached to this type of technology.
Interesting article, Junichi. It reminds me of a stored value card in Hong Kong called the “Octopus Card”. Its primary purpose is for making travelling on public transport more efficient. It is similar to DC’s SmartCard, but you can also purchase low-item things with your octopus card. For example, you can purchase food at McDonalds or &-Eleven. Finland and Scandinavia are also very technologically advanced, as you can do similar things with e-payment through your mobile phone. I just hope that such technology would spread over to the US and other parts of the world, to give consumers more choice and make life better.
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