Mobile payment technology for the iPhone is on the horizon

Tue, May 18, 2010


DeviceFidelity announced today the availability of a new iPhone case that will enable users to engage in contactless payments such as Visa mobile payments. What this means is we’re not too far off from being able to simply wave our iPhones in front of a compatible payment terminal to complete a purchase.

Here’s how the technology works.

DeviceFidelity has a technology called “In2Pay” which is essentially comprised of a near-field communications chip embedded inside a microSD card. Put simply, it transforms your iPhone into a credit card. But seeing as how current iPhones lack a microSD slot, DeviceFidelity worked closely with Visa to develop an iPhone case with a built-in microSD slot that can communicate with the iPhone via the dock connector.

Visa’s press release on the matter reads:

By placing a removable In2Pay microSD into the protective case, iPhone users can take advantage of In2Pay’s secure contactless capabilities where contactless transactions are offered. They range from buying goods in retail stores and at unattended kiosks, to transit ticketing, and even securely accessing buildings and computers networks. Trials are scheduled to start during the second quarter of 2010.

DeviceFidelity and Visa hope that making wireless payment technology available to iPhone users will help accelerate adoption of the payment technology.

But how exactly does the MicroSD card communicate with a Bank?

Jeremy Kirk of PC World explains:

The deployment of microSD contactless payment cards is similar to that of regular credit cards. A bank would sign up a customer, and the credit or debit microSD payment card would be mailed to the user. The card could then be used for payments once it is inserted into a compatible phone and activated.


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