MasterCard and Citigroup Join Google for NFC Payments

Near-field communication (NFC) technology for mobile devices has been in the works for some time. NFC enabled devices will allow users to pay for purchases simply by swiping their phone near an NFC reader at a checkout. Big names like MasterCard and Citigroup, among others, have joined Google to lead the way on this new mobile
payment system, and it looks as though the time has finally arrived when you can use your Android device as a debit card. According to the Wall Street Journal, and other publications, Google plans to begin rolling out this technology in Android devices this year.

Using phones and other devices for payment may have its advantages, but privacy advocates are wary of the technology, and with good reason. With your phone beaconing your checking account information to NFC readers, one has to wonder just what kind of security measures will be in place to prevent would-be identity thieves from collecting data from those transmissions. Even if the transmissions are secure, there is yet another
cause for concern, this one less insidious, but no less important. When you use a Google device for payment, can Google then offer your personal information to retailers so that they can better target you for advertisements? Industry security experts are ahead of these questions, explaining that NFC technology is actually safer than swiping your card at a retail location, as the technology is much more sophisticated and uses higher-end encryption methods.

While Google is leading the charge on this front, other mobile device makers also have plans in the works to implement the technology in the months and years ahead. Weigh the risks, the benefits, and decide for yourself, but it seems that the days of losing your debit card are nearing an end for smart phone users. Now we all have to worry about losing our phone, and making sure we’re setting passwords for our lock screen.

[WSJ via ZDnet UK]