One of the biggest current buzzwords is the advent of NFC, which is slowly starting to creep into smartphones. The basic premise behind NFC is a programmable RFID tag which can interface with on board software on the phone. The idea is that over time your credit and loyalty cards can be replaced by a single NFC chip, which essentially turns your phone into a payment method. The biggest holdup with NFC is that banks and retail chains need to be ready for NFC, and it requires a significant upfront cost in the form of dedicated NFC capable PIN Pads. While Google and RIM have jumped on the NFC train with Google Wallet and all Blackberry phones getting NFC chips, Apple is taking a “sit back and watch” approach.
The new Geode case is from a small startup called iCache. The Geode case will essentially digitize your credit, debit and loyalty cards, all the while making it secure to use at any retailer that can handle cards – no need to wait for the merchants to catch up with NFC. The case is actually a terrific idea – on the back you will find a card reader, which the user must use to input card details in order for the card to be stored. The system also uses the iPhone camera to scan barcodes which are normally scanned (instead of swiped) at point of sale. On the front of the case there is a small fingerprint reader which requires your finger swipe before you can use the app.
But the truly amazing part comes when it is time to pay – the user fires up the app, swipes their finger on the case, then choose the relevant “card” or account they wish to use. Then they remove a special rewritable card which gets programmed by the Geode case (the card can be programmed to only stay valid for a certain amount of time, say 1 minute). Once they swipe their card, the transaction happens as if the normal card was swiped. The user places the card back in the case.
Loyalty based cards work in a similiar fashion, but the Geode case is pretty smart when it comes to barcode based cards as well – on the rear of the case you will find a small e-ink window (essentially same technology as the screen on a Kindle, making it readable by laser scanners). The e-ink window instantly changes to the relevant bar code of the loyalty card you wish to use.
Right now iCache needs to build up some capital for the case to be a reality, so they have set up a Kickstarter project in which people can buy in to the idea. So far the project has already reached their target pledge amount, so it looks like the Geode case will be a reality. The current price is $189, which is quite high, but considering the technology in the case it might be worth it. But my bet is that once Apple decides on their NFC implementation, we will see NFC take off – which makes the Geode case ideal for people who do not quite believe that NFC will take off in the near future.
One little issue though – how long before the banks have an issue with this system? If ABSA cannot even get on board with something like 22seven, I have no hope that they will approve of a system like this.
Oh and one more thing – the Geode case cannot be used for card skimming. Before any card can be added, significant security checks are done to ensure the card is indeed yours.
