Since 2009, a new technology with far reaching implications has been developed using RFIDs. A Texas based technology company has been developing a microSD card that can fit into mobile phones and act as an RFID reader. The device also acts as a passive RFID tag which can be triggered to perform payment activities. At the back end lies a bank account (yours) that is connected to your mobile phone using the microSD. This enables you to point your mobile device at some goods in a store and pay for it without needing to do anything else.
A joint venture between Vivotech and Dairy Queen has produced a technology where an optional RFID can be placed on customers’ mobile phones. This enables the mobile phone to receive coupons and promotions from Dairy Queen, which can read and redeemed using Vivotech’s RFID reading devices.
Mastercard and 7-Eleven are promoting a technology whereby RFID chips are embedded in special mobile phones available from them. This device can be used to pay at 7-eleven checkouts without any further effort besides pointing your mobile device to a product and punching codes.
One concern that people have about payment enabled mobile devices is the issue of security. Phones are easily stolen; even if they are not, radio signals sent through them may be intercepted and read – what stops a smart hacker to do just that and steal credit card data from thousands of people? If an RFID card reader can read your mobile phone embedded RFID tag, whats to stop another reader in the hand of a criminal to do the same and steal credit card or bank account data?
The answer to this lies in the added levels of security used in these mobile payment devices. Firstly, a high level of encryption is used, so that even if the data is intercepted, it cannot be read. Secondly, against the possibility of theft of your mobile, there is the security of passcodes and PINs which you must enter to complete a purchase.