Visa Launches Digital Wallet

Visa is joining Google in readying a digital wallet service. Actually, joined is a misnomer; Visa’s system (at least at this point) will compete with Google’s. Visa’s system will employ NFC (near field communications) technology to allows users to pay for items with one click, or swipe. Visa is working with other card companies, banks and credit unions to develop its system. Visa is targeting the fall for a North American launch.

There are numerous obstacles to launching this kind of service. For instance, NFC is not just one technology. There are competing standards in use and development, which may lead to a Betamax/VHS (or Blu-ray/HD-DVD) format war. There are also legal and cultural hurdles to be faced in various territories.
In the U.S., NFC technology may be more than just a parlor trick. NFC technology done right may provide more secure payments than a physical credit card transaction. Unlike many other developed countries, such as in Europe, credit cards in the US tend to rely on outdated (and more easily counterfeited) magnetic strips instead of embedded chips. Visa is reportedly still finalizing which method of authentication it will use for its security system.