in minutes

An illustrative look at news and events

Money reinvented
There are many innovations in mobile-phone money-transfer technology, but it’s too early to tell which methods will become widely adopted

Texts instead of stamps
The Danes and the Swedes have introduced SMS stamping for their postal services:

Direct payments by phone
For direct payments by phone, the cellphone acts like a debit or credit card. Here are two kinds of cellphone money transfer methods The phone woks like a debit that stand a good chance card. Instead of a magnetic of becoming widely adopted: band, the device displays a

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In Denmark, the letter sender texts “porto” to the number 1900 They immediately get texted back a numeric code, which is valid for seven days The sender writes the code on the envelope

Barcodes

barcode.

50 g

This method works for letters weighing less than 50 grams.

• The cellphone displays a barcode that gets read by a store’s optical reader • The money is withdrawn immediately from the consumer’s bank account This method is already part of an iPhone application for Possible value of regular Starbucks mobile payments customers. by 2014

$630B

Near Field Communication Protocol (NFC)
4
Estimated global value of mobile payments in 2010

Cell phone

$170B

The charges are sent to the sender’s cellphone bill

Cash still useful

• The cellphone uses NFC Protocol, which is a form of Wi-Fi. • A consumer has to pass his or her phone within five centimetres of a terminal to pay NFC could be used for many di erent kinds of analogue payment methods: Tolls for public transport, hotel room cards, VIP access at galas and concerts and cellphone-to-cellphone money transfers. An NFC standard is still far from being adopted and there are certain security problems that need to be fixed.

Actual distance

Terminal

The use of cash has been declining in North America since the 1990s. However, there are advantages to using so-called “liquid” money: • No transaction fees • Transactions are still possible during a blackout • Cash forgotten in wet clothes can be dried and reused — try doing that if your phone falls in water!
Sources: Post Danmark; The New York Times; How Stu Works; Wikipedia

In Canada
Rogers has been working toward getting globally accepted payment methods such as Visa, MasterCard and American Express to work on GSM smartphones with NFC for five years. By 2015, Rogers expects virtually every Canadian with a smartphone will be able to pay with proximity devices at many large retailers.
JUSTIN STAHLMAN/QMI AGENCY

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