Near Filed Communication (NFC) is a wireless technology allowing data to be exchanged between two devices from a short distance, hence the word "near" in the name.
So why do we need it? It makes paying for things at the store a whole lot more convenient. By simply waving your smart phone (with an NFC chip and Google Wallet installed,) near a MasterCard PayPass device at the checkout counter you can pay for your goodies. No contact with your card or anything at the counter.
There are currently 140,000 PayPass devices installed at retailers across the United States, and more to come.
Here's why you need to pay attention to this new technology:
1) It's More Secure Than Your Credit Card
Yep, Google Wallet requires a PIN in order to use it; the function locks you out if you enter the wrong number five times. Also, no need to worry about hackers as the signal only works up to less than two inches. Think about how easy it is to use your credit card by someone who steals it.
2) Special Offers
A participating merchant can use Google Wallet to offer special deals, and you don't have to do a thing. If you receive a coupon in the mail, you can clip it and save it to your mobile wallet.
3) It's Quicker Than A Credit Card
Although the technology has run into some snags about 25%, it is new and some kinks need to be worked out. When it does function properly, it's a lot faster than getting your credit card out, swiping it and putting it back in your wallet or money clip.
4) Many More Uses Are Coming
Not having to carry your credit card is only one thing; in the future, Google Wallet may be able to store gift cards and event tickets and possibly those discount cards that many retailers offer.
However, the caveat is convenience. Through the 4,500 years mankind has used money it has gotten more convenient; from gold bullion to coins to paper to plastic. Now all it takes is a wave; hardly any thought process involved at all. If you spend money easily, this may NOT be the thing for you. If you only make purchases based on your liquidity, then this will work and save you time.
Every time you make a purchase, do you know how it will affect your liquidity?