The next step of electronic commerce has been taken. Individuals will now be able to use their phone as a digital wallet, eliminating the use for credit cards, cash and checkbooks.
AT&T, Verizon and T-Mobile, along with a total of 220 million U.S. customers have come together to form the ISIS mobile commerce network. This network will allow users to use their phone as a credit card. The network uses Near Field Communication technology, NFC, which allows wireless data to be transferred within four inches of the phone and reader. While NFC technology is not new, as it was founded in 2003, it has been slow to catch on in the USA. However, this new technology will eliminate the need to carry around credit cards and empower the mobile device even more.
The leverage and strength of such major firms signing on with this new technology will give ISIS the leverage and market value it needs for the new technology to catch on. Mike Abbott, the CEO of ISIS stated; "We're painting a vision of the future; we're pulling this together. It's all about simplifying the consumer's life." Credit card companies are signing on to this new technology and retailers will even be able to give coupons back to the ISIS users. The android and Nokia’s new phones will be NFC ready and apple has signed on an NFC expert for the next generation of iphones. This is clearly a step in the future.
One might be concerned with the security implications of such an open method of payment. However, Abbott states that it is much easier to be protected with one’s private data with a phone than with a credit card. He states that it is locked in with a password that is encrypted inside of the phone. It cannot be stolen as easy as a credit card. One call can shut ISIS down immediately and one call can restore it, making it easier than having to order or cancel credit cards. This is just one more example of how IT is allowing us to live an easier an streamlined lifestyle.
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