Antony Jenkins, CEO of Barclaycard says contactless chips have huge untapped capability, but the plastic around the chip limits its potential.
"Take the plastic away and the possibilities are endless, allowing the customer to pay by using something that they are already carrying, be it a mobile, key fob or even via biometrics," he says.
For an idea of how this might work in action, check out this
YouTube video which shows how to remove the chip from an Oyster travel card and then re-attach it to anything you want - in this case a wristband.
There are also the trials that Altair have run with contactless wristwatches -
I for one am not surprised by this view. Mobiles are it.
I'm not so sure about NFC though.
The strap-on or on-strap solution where a chip/card is attached the phone may have an issue where one needs replacing, be it the chip or the phone, they both go. While I can see the thought process in the 'stick it on' approach, I somehow don't think that's
what people have in mind for their cellphones. Would it be possible to remove a stick-on...?
It remains to seen how reader penetration proceeds and compatibility or security issues develop. Overall, I'm dubious about readers.
Consumers may just be moving towards more privacy and security, and any system will have to deliver vast improvements in these areas. Why - because we can.
The strap-on chip or chip-on-strap seems like a short term solution to leverage the value in those existing investments in readers. i.e, a step back to go forward?
Ultimately banks should find mobile transactions as much a liberating experience as it will be for consumers. We'll be trying to make it so.
... "remove the chip from an Oyster travel card and then re-attach it to anything you want" .......... what about the antenna ??. It won't work too well without it.
Cehck out the video. The antenna is looped around to fit the wristband.
© Finextra Research 2016