The Nexus S and NFC: The Future of Contactless Payments

Nearly all Android mobile devices, including the Nexus S, are equipped with Near Field Communication (NFC) technology. This innovation opens the door for a myriad of uses, from simple information exchanges to the ability to make payments. However, can the Nexus S not only read NFC tags but also transmit an NFC signal for payment purposes? Let us delve into the technical and practical aspects of this question.

Conceptual Feasibility

Technically speaking, the Nexus S, equipped with an NFC chip, is designed to facilitate communication with NFC tags and other NFC-enabled devices. NFC chips in modern smartphones can indeed initiate NFC signals, enabling contactless transactions through payment terminals. The limitation, however, lies in the fact that a payment application and a secure element are required to process and secure the transaction details. Both the hardware and software components can be in place, but the integration and service provision are still not standardized across all regions and financial institutions.

Practical Considerations

In theory, applying an existing credit card to a Nexus S for payment purposes is not feasible out of the box. Instead, users need to apply for a new form of payment account that will be securely transmitted to the phone over the air. The good news is that no additional merchant equipment is required, as merchants already have contactless payment terminals.

To perform a Visa PayWave or MasterCard PayPass transaction with a Nexus S, the following components need to be in place:

A compatible SIM card or Secure Element containing the PayWave/PayPass application Your payment credentials securely stored within that SIM so that transactions hook into your account

Currently, the necessary pieces are almost ready, but they have not yet been integrated for the average consumer to sign up to. This is a step that all industry players such as carriers, banks, and other technology providers are actively working on. In a competitive landscape, it's likely that multiple actors will propose different services for smartphones starting from 2011. The big question remains: who will provide this service?

Industry Players and Their Roles

Several major players are positioning themselves to offer NFC payment solutions. Here are a few key names:

ISIS: A joint venture of Verizon, ATT, and T-Mobile, which was announced on November 16, 2011. Despite this, ISIS does not even have a website up yet. MasterCard and Visa: Both companies are heavily invested in NFC technology for a wide range of applications. They are working to offer payment services through NFC on various mobile devices. PayPal: Offering its digital payment solutions over NFC could be a strong move for the company, especially considering its(position) in the digital wallet space. Apple: Speculations abound that Apple is also in the race for NFC integration in its mobile devices. With the power and trust that Apple commands, this could have a significant impact on the future of mobile payments.

In the coming years, we can expect a long and intense battle between these major players to win over customers and financial institutions. While the technical capabilities of the Nexus S are promising, the success of such a service will largely depend on which provider offers the most trusted and convenient payment solution.

Technical Insights

The Nexus S utilizes an NFC chip from NXP, which has the capability to perform card emulation. This means that the chip can mimic a credit or debit card, sending and receiving radio frequency (RF) signals to and from a payment terminal. The NXP chip can also interface with the SIM card using the SWP (Secure Element Within the Phone) protocol, indicating the potential for secure and integrated payment management.

Regarding the secure element, early reports suggest that the APIs to enable users to download payment credentials to the SIM or Secure Element are not part of the publicly available release package. However, these APIs are almost certainly being used by the main actors, but under confidential agreements with Samsung and Google.

The future of mobile payments is undeniably exciting, with the Nexus S leading the charge. As technology continues to evolve and providers refine their services, it's likely that we will soon see a more widespread adoption of NFC-enabled mobile payments, making transactions as seamless as ever.