It is not for the lack of ideas, nor is it the lack of people trying to build interesting technology with it. It is because of the carriers.
Yes, the carriers, like Verizon, AT&T, and T-Mobile.
Before I explain why the carriers are the problems, let's step back and talk about how NFC payment works. On every NFC phone, there is a chip that is called the secure element. The secure element is the location on your phone that is separate from the operating system that stores highly encrypted data that only trusted programs can access. This is the only secure location on your phone that one can safely and securely store payment credentials. Storing payment credential on any other part of the phone exposes it to abuse.
On the NFC-enabled phones in your pocket, the carriers have full control of the secure element. They are actively preventing other companies from using this to store any information and fully utilizing NFC to their potential as a digital wallet.
The reason they are doing this is that Verizon, AT&T, and T-Mobile have a joint venture called Isis [http://en.wikipedia.org/wiki/ISIS_(mobile_payment_system)]. Through this joint venture, they want to own a piece of the mobile payment market. Anyone that wants to create a mobile wallet must pay them for the right to do so. (Notice how the Google Wallet launched on the only carrier that is not part of the joint venture?)
See also: http://www.nfctimes.com/news/google-nfc-platforms-should-be-...
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"Dickson Chu, Citi’s head of global enterprise payments for digital networks and mobile, speaking at a conference earlier this month, reportedly complained that Isis was taking the role of a “gatekeeper.” Isis would charge fees to banks and other service providers to rent space on its SIM cards or other secure elements, as many mobile operators plan to do when they roll out NFC. That’s in addition to charging fees for delivering coupons or offers. Google plans to charge fees from advertisers for delivering coupons and other offers but not from payment service providers.
“It's unclear what they (Isis telcos) are trying to achieve, other than extract a toll as gatekeepers,” Chu reportedly said. “There's so much more that they could do...as it is they are just hampering the development of NFC as a mass-market commercial proposition.”
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It is not for the lack of ideas, nor is it the lack of people trying to build interesting technology with it. It is because of the carriers.
Yes, the carriers, like Verizon, AT&T, and T-Mobile.
Before I explain why the carriers are the problems, let's step back and talk about how NFC payment works. On every NFC phone, there is a chip that is called the secure element. The secure element is the location on your phone that is separate from the operating system that stores highly encrypted data that only trusted programs can access. This is the only secure location on your phone that one can safely and securely store payment credentials. Storing payment credential on any other part of the phone exposes it to abuse.
On the NFC-enabled phones in your pocket, the carriers have full control of the secure element. They are actively preventing other companies from using this to store any information and fully utilizing NFC to their potential as a digital wallet.
The reason they are doing this is that Verizon, AT&T, and T-Mobile have a joint venture called Isis [http://en.wikipedia.org/wiki/ISIS_(mobile_payment_system)]. Through this joint venture, they want to own a piece of the mobile payment market. Anyone that wants to create a mobile wallet must pay them for the right to do so. (Notice how the Google Wallet launched on the only carrier that is not part of the joint venture?)
[see http://www.nfctimes.com/news/isis-plans-launch-three-banks-c...] "In addition, Isis plans to charge fees to banks and other service providers to rent space on their SIM cards or other secure elements in the NFC phones the carriers sell."
See also: http://www.nfctimes.com/news/google-nfc-platforms-should-be-... _______________________ "Dickson Chu, Citi’s head of global enterprise payments for digital networks and mobile, speaking at a conference earlier this month, reportedly complained that Isis was taking the role of a “gatekeeper.” Isis would charge fees to banks and other service providers to rent space on its SIM cards or other secure elements, as many mobile operators plan to do when they roll out NFC. That’s in addition to charging fees for delivering coupons or offers. Google plans to charge fees from advertisers for delivering coupons and other offers but not from payment service providers.
“It's unclear what they (Isis telcos) are trying to achieve, other than extract a toll as gatekeepers,” Chu reportedly said. “There's so much more that they could do...as it is they are just hampering the development of NFC as a mass-market commercial proposition.” _______________________