With modern technology revolutionising the way we communicate, it makes sense that technology will also change the way we bank.
Near-Field-Communication is a system which allows you to use your smartphone to pay your way, and complete transactions without having to carry cash or your bank card.
However, while tech giants such as Google and Verizon are convinced NFC banking is the future, eBay’s PayPal, is a little more skeptical.
PayPal’s wary of seeing NFC as the future
“The jury is out on NFC,” says PayPal’s VP of mobile, David Marcus
“It’s not like we hate NFC, and if it takes off, we’ll be on it, but we’re not dependent on NFC’s success to succeed offline, and that’s a very differentiated approach.”
“I really think that it’s a lot of complication and headache for very little added value,” Marcus said.
“And by the time it reaches maturity other technologies will actually be prevalent.”
Meanwhile NFC News reports that PayPal has begun testing new mobile payments software at five Home Depot stores in the US.
Instead of relying on NFC, PayPal’s system offers an alternative solution to fast banking, by enabling consumers to make payments directly from their PayPal balance by typing in their phone number and PIN.
The advantage of this over NFC is that you don’t need a smartphone which has the NFC technology, and it isn’t necessary to download or pay for any apps.
I think PayPal has caught onto something great here and as a trusted name in banking, I can see many people adopting this modern and simple way of making a purchase.
Strong partnership with AJB
PayPal has partnered with AJB Software Designs, which states it services 20 per cent of the top retailers in North America, and helps connect the point-of-sale terminals at many tier-one retailers to payment processors and financial institutions.
Gigaom reports that “AJB is now incorporating PayPal’s mobile payment system into its framework and building out a specific PayPal interface, which will allow PayPal users to pay through 250,000 point-of-sale terminals that connect to AJB software.”
What do you think of NFC? Can you see it taking off? Or do you prefer PayPal’s method for modernising the way we bank?