Amex suggests that with Serve and Payfone you'd be able to link your cell number to a variety of credit and debit card accounts, and then pay swiftly and securely at the checkout in stores.
If that sounds familiar, then it should--it's almost the exact same process needed for wireless NFC credit card payments, a system we expect to see exploding over cell phones and smartphones from about now onwards. And that reveals Amex's plans for all to see: This investment is a precursor to enabling NFC payments from phones in stores.
And since location data is securely included in Payfone's protocol, it could also enable a secure way for NFC phone owners to transfer money between themselves merely by putting their phones together--Payfone would do all the fund verification, work out the phones are co-located, and Amex's Serve would handle the transaction. More than this, the investment in Payfone has a slightly tactical flavor because Amex could have invested instead in technology that didn't use cell phone network infrastructure...and hence it's a sign Amex knows it needs the networks on its side if it's to be a player in the upcoming market.
Wednesday, April 13, 2011
American Express Invests in PayFone, Powers Mobile Payments Plan | Fast Company
via fastcompany.com
