Passbook the next mobile wallet
Near Field Communications has been the overused and overhyped buzzword for a probable mobile wallet solution.
To date, only a handful of devices from RIM, HTC, Samsung, Sony, Nokia, LG and a few others have shipped with NFC built-in. Owners of older smartphones can’t simply upgrade their OS or buy an accessory to enable the service and need to buy a whole new device.
The biggest issue facing NFC as a standard right now is that it requires the NFC chip to be built in to a device and it also requires merchants to install NFC readers that connect to the various databases. There are a number of variables that need to be in play for the touchless transactions to work.
I have had NFC features for years on my Google Nexus, HTC Flyer, Galaxy Nexus and Nexus 7 devices and never used them to “beam” images from one device to another since attaching images via email seemed faster and less awkward.
Apple’s Passbook app, which uses the device’s screen to generate bar codes that retailers can read for transactions, may be a better interim solution.
Passbook, which is available in all iOS 6 iPhones, iPad and iPod Touches, isn’t being touted as a mobile banking solution, but it brings a viable payments solution to the market with systems and devices that already exist.
Passbook works when the developer or company creates a pass using Apple’s Pass-Kit API and code. This is sent to users through email, URLs or an iPhone App. Users accept the pass (ticket, coupon or card) on their devices. They can now access the pass when they need to pay or transact.
The merchant or store will need to be equipped with the bar code scanners, which could be costly, but at least the customers already have the tools they need for their end of the transaction, all they need is the smartphone and the app.
Passbook collects coupons, boarding passes, movie tickets, retail coupons, loyalty cards and others. Just like the popular Starbucks app, Passbook generates bar codes that can be scanned by any bar code scanner already installed in most retailers, merchants and check-in desks.
The merchant simply scans the coupon that shows up on the iPhone’s screen and the transaction takes place. It is as simple as that.