Just for contrast, another very large and traditional organization – Sparkasse – is intent on introducing NFC payment to the German market. Whether or not they succeed is going to be an interesting story to watch unfold, as they face quite a number of hurdles ahead in successfully rolling out their new system, dubbed giroGo. They face many hurdles, including:
1) wrong target population – given the number of seniors who prefer paying with cash over anything else, I just don't see many grandmas in the mood for demanding mobile payment conveniences.
2) proprietary protocol – the protocol is proprietary and only for bank cards. The smartphone generation is more eager to use their phone for managing an electronic wallet than carrying around that plastic bank card with them. Unless the protocol is opened up, that won't be happening anytime soon.
3) uncertain merchant acceptance – whether merchants will want to install NFC readers for this proprietary system is unknown.
Either way, for the time being I'd prefer not to have an NFC-compliant system in my pocket. I'm not convinced that a cunning thief installing a payment collector at a convenient location (e.g. where people typically rest their wallets or handbags at an ATM) can be effectively avoided. I'm also not convinced that NFC range is sufficiently small to prevent a network of carefully laid out readers from tracking my movement. As to security? I'd trust them about as much as I trust cloud computing – not 100% failproof, but enough to work most of the time.
The World is Not Quite Ready for Mobile Payments, According to MasterCard
Is the world ready for mobile payments? Not quite, according to a global survey released by MasterCard yesterday. There are a variety of factors that lead will lead to mobile payments adoption across …