Mobile wallet on handsets will not be replaced by NFC on SIM

Typical SIM Card

Typical SIM Card
According to SK Telecom in South Korea, subscriber identity module (SIM) card-enabled near field communication (NFC) will provide a complement technology, but not a substitute for handsets that have been NFC-enabled.

NFC implemented within a SIM card makes it much simpler and faster for consumers to obtain the technology, as they do not have to replace their handsets in favor of ones that have been NFC-enabled. Equally, though, SK Telecom says that they will work together with the purchase of NFC-enabled handset to build on the adoption of mobile wallets.

SK Telecom’s Ambient Technology Lab’s manager, Park Konggyun said that these two technologies will work together to drive mobile wallets instead of one replacing the other.

This conversation was brought about by the decision of the operator to launch a new product called the “NFC on USIM” card, which has a 13.56MHz antenna embedded within it, suing a USIM chip and an NFC chip.

Konggyun explained that the manufacturers of handset devices have started to build NFC technology into their newer models. However, with the number of NFC enabled handsets that are currently available, there is certainly a spot for “NFC on USIM” to fill the gap so that consumers will have the opportunity to experience services that require NFC services without having to buy a whole net handset just yet.

Smartphones can instantly be transformed into mobile wallets with the insertion of the SK Telecom chip. This allows users to make payments at points of sale by waving or tapping their phones on an NFC reader.

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