Last updated: 25 November 2016
Over the next few years, the smartphone is set to rival the physical wallet, making buying goods and tickets easier, while improving the banking experience at the same time. However, if the vision is to become a reality, we need to ensure mobile wallets are convenient to use and accepted everywhere. The rise of some mobile services has allowed travelers to use their smartphones to pay for public transport, but there can be problems if devices run out of battery before the end of their journey. In London, some users were overcharged due to their smartphones and smartwatches running out of battery, leading to the London Underground’s systems reading their journeys as ‘incomplete’. Taken together, two ‘incomplete’ transactions can cost a traveler an eye-watering £17.60 – over £10 more than the daily price cap which allows unlimited journeys through a metro or bank card. Alarmingly, people could even get fined £80 if they’re unable to prove that they’ve travelled with a mobile ticket.
Fortunately, though, one mobile payments provider is addressing the problem with an innovative new solution. Vodafone Wallet is already one of the leading NFC mobile wallet providers, supporting contactless payments. Now, in partnership with PayPal, it’s launching a payment method which doesn’t even require your mobile to be activated. It’s so, so simple. Just like a contactless bank card, the NFC SIM card on your mobile phone stores securely your payment credentials and is securely connected with the NFC chip and antenna of the phone, meaning that you can use it for payments even if your device is switched off. It’s currently the only mobile payment service to offer the solution.
We’re proud to say that Gemalto is a Vodafone Wallet partner, providing the backbone infrastructure for the new NFC technology. We’d like to congratulate Vodafone Wallet on their success at both the Emerging Payment Awards 2016, winning in the ‘best gift/incentive card programme’ and ‘best proximity/contactless payments solution’ categories, as well as the Payment Awards 2016, winning the ‘engagement & loyalty scheme of the year’ and ‘overall winner’ categories. By addressing consumer concerns and placing convenience at the core of its product, Vodafone is marching towards its 2020 vision; the end of leather wallets being a necessity.
We think the digitization of the wallet brings all sorts of benefits, allowing users to store all their credentials, purchasing information and loyalty cards in a single, secure place. Let us know your thoughts on NFC technology by tweeting to us at @GemaltoMobile. Plus, to discover more about the benefits of contactless technology, check out our #MyNFCDay series.