image credit: wynlok
RFID chip payment systems -- such as poll passes, subway cards, key chain tags you swipe at certain gas stations -- aren't anything new. Though Bling Nation hopes to market its branded chip sticker so that consumers can pay at checkouts with their cell phones.
How It's Different
1. You can leave your wallet at home. There's no integration with the mobile device at all, so really, you could attach the sticker to your hat as one colleague suggests.
2. Cheaper to use. Bling charges retailers a fraction of what banks charge them to process credit card transactions.
Don't cancel your credit card just yet. Though Bling Nation's program is underway is a couple small communities. There are some crucial elements that it still lacks.
What It Needs to Stick
1. Infastructure. According to Netbanker, "There are about 110,000 PayPass merchants worldwide, less than 1% of the 25 million locations that accept regular MasterCard cards. "
2. Customized branding. Lending companies should make it a point to design eye-catching stickers. Or let consumers customize their own.
3. Security reassurance. Consumers are used to using a credit card with their name on it and some stores ask for I.D.s to combat fraud. Of course there are always early adopters, but it would take better education around theft-identity to assure consumers that this is indeed safe. Sure, my credit card could get stolen, but I would think a retailer would recognize a consumer using a stolen credit easier than someone trying to pay with a stolen phone.
I'm all for technology, but I must say that I'm one of those old school credit card lovers. At least for now. What would make you make the jump?
Thanks to Stephen Murray for the link and Fang-Yu Lin, Dan Neumann, Karri Ojanen and Stephen for their thoughts on this topic.
Sarah Jo Sautter
Strategists & Planners
Comments (1)
It's going to be a long hard road for consumer adoption I reckon. The only way this can fly is if it comes as standard on crazy popular handsets like the iPhone. Maybe in around 3/4 years I think.
Posted on November 2, 2009 08:18