Originally published on Oct. 23, 2014
Technology changes the world around us at a staggering pace, giving people new ways to interact with their environment. Mobile wallets, the newest development in payment technology, is a contemporary method of payment incorporated into an individual's smart phone. This new innovation is expected to be the most fundamental change in retail since the advent of the credit card, forever changing the face of retail. This application allows the customer to make purchases in much the same way as credit cards by electronic means as no cash is exchanged. In today's world nearly everyone is inexorably attached to their smart phones and providing a way for people to purchase goods through these devices is the logical next step in smart phone evolution. Eliminating the need to carry multiple credit cards is a huge benefit especially in certain situations like going to the gym when carrying many items can be a burden.
The mobile wallet transaction is effortlessly accomplished by opening an app in one's phone and tapping the phone against a reader at checkout. The technology enabling this innovation is known as near field communications. Near field communications, commonly referred to as NFC, is a technology solution which transmits a short field telecommunications wave spanning only a 4cm distance. The short distance wave interacts with the payment terminal at the retailer upon contact, transferring the necessary data and completing the transaction. NFC technology erects a physical barrier from cyber criminals as transactions in other locations are rendered impossible. The entire process is accomplished in under a second, simplifying the experience for both retailer and customer.
Mobile wallet technology, despite bright horizons, has yet to gain widespread acceptance with consumers as concerns for personal security leave many suspicious. Major companies such as Google (NASDAQ:GOOG
