NFC morphs the wallet and the mobile phone

The mobile phone is taking society by storm. Currently, one third of all the people on the planet carry a mobile phone, just a quarter century after its introduction. In just over three years time, we’ll pass the half way mark, and we expect the world will be a very different place a decade from now as the mobile phone takes on ever more remarkable qualities and function. And with sales of mobiles heading for the one billion a year, mobile phones are heading for ubiquity. Although more and more features are packed in every year, the mobile phone is still a long way from achieving its full potential. In tomorrow’s world, things we do every day, like paying at the till, buying a ticket for the bus or entering competitions, will all go through your mobile phone…using NFC technology. NFC stands for ‘near field communication’, a short-range wireless connectivity technology that enables two peripheral devices to exchange data via radiofrequency 13.56 MHz @ 424 Kbps) – i.e. without physical contact – over short distances of up to 5m. NFC technology has been approved as an ISO, ECMA and ETSI standard.Sagem is already trialing this exciting technology in Europe and would like to keep you abreast of the possibilities. NFC is not a new technology, and certain underground rail systems have already implemented it via contactless rail passes to offer seamless walk-through travel rather than turnstiles, making the system quicker and more convenient. However, when it is built into mobile phones, it could have a dramatic impact and open up huge potential for new applications.

NFC won’t work on just any old phone, though. There are a couple of technical criteria that have to be met to ensure the system works smoothly. First off, NFC has to be able to work within the mobile phone without power – after all, how would you use your mobile as a metro ticket if your mobile phone was out of battery? The next step is to secure all NFC-ready applications – you won’t use your mobile phone as a payment card unless you’re guaranteed the process is secure. To work effectively, the phone requires several applications operating seamlessly side-by-side, so that your mobile can be a payment card, travel pass, and a loyalty card, all at the same time.

Using your phone to pay for goods and services

How does it work? Simple. You start by swishing your phone across a reader. There will be a visual and a sound signal to tell you that a connection has been established with your telephone.

You then type your pin code on the phone, which displays the amount to be debited. To complete the transaction, you swish the phone a second time across the reader to get payment confirmation. This is a solution that can be used for any kind of payment, regardless of the figures involved.

In contactless mode, NFC technology operates over very short distances, so short in fact that there is zero interference, and no need to go through the mobile phone network. It is a solution where the phone user has to physically move the phone over a reader.

With the SAGEM my700X ContactLess, you can make fast and secure payments in a flash. At the beach, at the corner store, or at the gym… you will be able to pay using your mobile phone and you can leave your money at home!

Since November 2006, 200 Strasbourg-based customers of one of the top banks in France have been issued with SAGEM my700X ContactLess phones which they are using to pay for goods and services at local outlets ranging from cinemas and restaurants to major supermarkets.

Paying for public transport

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