Home Internet of Things Aerospace Apparel Energy Defense Health Care Logistics Manufacturing Retail

Ask The Experts Forum

BlogsAsk The Experts ForumCan NFC Proximity Cards Be Utilized to Pay for Goods Virtually?

Can NFC Proximity Cards Be Utilized to Pay for Goods Virtually?

Posted By RFID Journal, 01.10.2013
Would it be possible to set up an online financial Web application in which a user would have a virtual account and be able to pay for items via a proximity card using NFC technology?

—Name withheld

———
It would be technically feasible, but it might not be practical.

If you were to have customers sign up for an account and then transfer funds into that account, you could issue each user a card with an embedded radio frequency identification transponder employing the Near Field Communication (NFC) protocol. Each card could contain a random serial number linked to that user's account. When the customer paid his or her account, the application would determine the account associated with that particular NFC serial number and debit the purchase amount.

The challenge would be that retailers would require a point-of-sale (POS) device able to read an NFC transponder. A number of credit-card companies currently offer credit and debit cards with embedded RFID transponders, and there are POS terminals that can read these cards. But you would need to obtain permission from the financial institutions providing those terminals in order to enable consumers to use them, and it is unlikely that they would offer that to competitors.

Another alternative would be to provide retailers with a dedicated terminal for your institution. That, however, would be an expensive proposition. What's more, retailers might not want to put another terminal on their checkout counter, unless a sizable portion of their customers wanted to use your system.

—Mark Roberti, Founder and Editor,
RFID Journal

Login and post your comment!

Not a member?

Signup for an account now to access all of the features of RFIDJournal.com!

Next Post
Would Passive Tags Suffice in Tracking C...
Previous Post
Where Can I Find Far-Field Interrogators...
PREMIUM CONTENT
Case Studies Features Best Practices How-Tos
RFID JOURNAL EVENTS
Live Events Virtual Events Webinars
ASK THE EXPERTS
Simply enter a question for our experts.
TAKE THE POLL
JOIN THE CONVERSATION ON TWITTER
Loading
RFID Journal LIVE! RFID in Health Care LIVE! LatAm LIVE! Brasil LIVE! Europe RFID Connect Virtual Events RFID Journal Awards Webinars Presentations
© Copyright 2002-2016 RFID Journal LLC.
Powered By: Haycco