Dec 14, 2012 Dave King
The emergence of near field communication (NFC), a standard for smartphones and other mobile devices that establishes radio communication for mobile payments and data exchanges, is also broadening the use of phone transactions. With the first NFC-enabled mobile payments launched recently in Canada, it's just a question of time before all carriers will be able to offer the technology. In the meantime, SeekingAlpha reports that service providers have concentrated on lining up financial institutions, phone manufacturers, merchants and point-of-sale providers to allow for this type of payment as NFC progresses with smartphones. However, there is a power struggle brewing over NFC-enabled mobile wallets, the website reports. Service carriers want the payments security chip in the phone's SIM card, while manufacturers prefer to place it in the device so they can earn a profit from it. Since carriers primarily control the sale of phones that go with their services, they appear - at least for now - to have the upper hand. Only one thing seems certain. Seeking Alpha projects that future sales of mobile phones will hinge greatly on which providers offer the most secure service for consumers and the companies to which they send electronic payments.