Think NFC (Near Field Communication) on smartphones such as the Nexus S and the Samsung Galaxy S3 is the next big thing in mobile? Well, online payment and fund transfer services, PayPal, doesn’t seem to think so and its inStore app has challenged NFC claims.
Cameron McLean, PayPal’s UK MD, says, “Research we carried out last year amongst major retailers suggested that 2016 will be the year you won’t need a wallet to shop on the British high street. A phone will be enough.” This means that your phone does not need NFC to pay for stuff.
This is how PayPal’s instore app works. It has been launched with brands in the UK such as Warehouse and Oasis. It can be used by both Android and iOS devices. The app is secured by setting your own PIN. Once installed, the app generates a barcode of anything you want to buy from the said shops. You then show the barcode to store’s personnel. The barcode is scanned with regular barcode scanners and the price of the item is subtracted from the amount of PayPal credits you have on your account. This too does not require you to bring out your wallet.
McLean says that the app “even works when there is no mobile or Wi-Fi signal”. He also suggests that the inStore app emphasises PayPal’s view, which is “mobile payments don’t need near filed communication (NFC) technology to succeed. PayPal’s ‘pay by mobile’ service works with phones most of our customers already own.”
Are you with PayPal, or are you with NFC? Which side are you on? Let us know through a comment.