Visa has been working for some time on mobile payment space with DeviceFidelity for porting the Visa contactless applications into the MicroSD environment. We’ve already heard many news that Apple is also quite interested on the same subject and now finally that seems to be a reality, according to a post on Engadget.
Apple has been submitting patent application for the next generation iPhone on NFC objects. However, I strongly believe that the secure element will be under the control of Apple, not the carrier or the user -if an iPhone with NFC support is to be released. So Visa is heading on to its own path. What I understand from the news is that a PayWave application running on a MicroSD card will be attached to iPhone through a special casing. It seems we will see the application available on iTunes in the long run. And it’s name is In2Pay.
Although there’s not much detail on the project in general, I think that it will be specific to US, which will essentially switch the transaction interface from magnetic stripe to contactless for payment, not more. Of course a transaction history kind of details must be available in the application. The aplication will be secured by password
It’s a good move from Visa to provide a solution to mobile payment space over the iPhone platform, but I believe it will take quite a time to make the application commercially available. If it comes quickly, it will definitely be the killer application for me to buy an iPhone!
DeviceFidelity’s white paper also indicates that other mobile platforms are supported. More importantly, In2Pay v2 will have OTA support for personalization and multiple bank accounts will be available. v2 will have the full NFC environment from couponing to payment.
I strongly recommend to download the white paper from DeviceFidelity (requires a very short registration)