NXT-ID has created a mobile wallet solution for consumers that don't want to use their smartphones for transactions.
The "Wocket" mobile wallet stores payment information for up to 100 credit and debit cards on a smart card. The smart card utilizes multi-factor authentication including biometric and touchscreen verification. You can either use voice authentication to activate the Wocket at a POS or tap security information onto the home screen.
After activating Wocket, shoppers can choose which payment method they prefer to use. Then, they can either swipe the Wocket through a magnetic card reader, scan the card's QR code or use NFC to complete transactions.
NXT-ID stores all payment information within a secure biometric vault. Also, the magnetic strip never retains personal information or credit card information. For example, if you pay for something using your MasterCard (News - Alert), then Wocket erases all card information from the strip after you complete your transaction.
Although mobile payments have caught on in other countries such as China, South Africa and China, Americans haven't widely adopted mobile payment technology. According to a recent study from SAP (News - Alert), only 15 percent of North American customers expressed an interest in buying more with their smartphones.
American consumers haven't gone mobile for several different reasons. The biggest reason is that few American retail stores have updated their payment infrastructure to accept mobile payments. Also, many consumers worry that criminals could obtain their credit card and debit card information from a lost or stolen smartphone.
In addition, the mobile wallet infrastructure is fragmented. Google (News - Alert) Wallet works for prepaid, Citibank, Visa, MasterCard and Discover cards, but it's NFC based, which means it only works with phones and store payment terminals that are equipped with NFC.
Another mobile wallet, Apple (News - Alert)'s Passbook app, allows loyalty cards, gift cards, credit cards and debit cards to be stored on iPhones. However, only a few merchants currently accept Passbook.
When NXT-ID releases Wocket in 2014, it could be the catalyst for mobile payment adoption in the U.S. and other developed countries. Wocket addresses security concerns, works universally and requires no equipment investments. Interested consumers can register at TheWocket.com to be notified when pre-orders become available.
Edited by Cassandra Tucker
Back to Mobile Commerce Insider Home