NFC-powered mobile commerce is gaining momentum all over the world. Many telecommunications and financial organizations are working on developing mobile payment systems that utilize the technology. Some of these organizations have even partnered in order to ensure their share of the market is not taken over by an innovative and enterprising competitor. Acclaimed online payment manager PayPal had once planned to adopt NFC as for its version of a mobile wallet – an application for smart phones that facilitates mobile payments. Earlier this year, the company announced that it would be abandoning NFC technology in favor of its own system.
PayPal has begun laying the ground work for their new mobile payment system called PayPal Here. The new system is based on an existing mobile payment model PayPal launched earlier in the year. This model has users input their phone number and a PIN to make purchases from their mobile device. The Here system builds upon that foundation, but offers more benefits for small businesses rather than consumers.
The system is currently only available for the iPhone. It is, essentially, a simple credit card reader that plugs into the mobile device. Users are able to swipe their card through the attachment to make purchases. The system is designed for small businesses, which may be problematic considering the lack of interest some retailers have in using an iPhone as a payment platform in their stores. PayPal believes that the system is much more intuitive than other payment systems using NFC technology. Time will tell if the company’s hopes are realistic.
