updated 10:20 am EDT, Wed May 11, 2011
Visa mobile payments plans detailed
Visa as it promised last week provided early details of a new mobile payment system. The company is creating a mobile wallet that would use NFC wireless along with the credit card firm's payWave app for buying items in stores and online as well as payments between device owners. Several institutions are already onboard and include Barclaycard US, the Pentagon Federal Credit Union, and US Bank among others in the US as well as most major Canadian banks.
The payment system wouldn't be limited to Visa card holders. Buyers could use a sign-in for a different account system instead of putting in bank information. Owners could also merge multiple payment systems and control both how the payment system behaves as well as opt in for deals from stores.
Security could get more advanced in the future with "dynamic" authentication to make sure an online order is legitimate. Visa also promised that it would work on getting NFC to work where credit cards and even banks were rare, such as through prepaid cards.
Service is due to go live in the US and Canada during the fall, though Visa didn't name which phone platforms would support the system. Only Google's Nexus S and Nexus S 4G currently support NFC on smartphones in the US. More NFC phones are due to come to the market before or just as Visa is ready, including the BlackBerry Bold 9900 and possibly the Galaxy S II. Apple is also rumored adding NFC to the iPhone for its rumored September launch.