The iPhone 5 Debit Card Concept Unveiled

200 people were the first to receive the credit cards issued by Diners Club in 1950, the idea of Frank McNamara. This was the beginning of a whole new era in consumer credit and payments. American Express entered the business with his own credit card in 1958, within five years they have issued more than a million cards. Today there are more than $ 1.6 credit cards in circulation, and industry credit card U.S. generates 2.8 billion billion annually in revenue. One in 12 homes in London (or 8 percent) used credit cards to pay their mortgage or rent during the past 12 months and credit card balances amounted to 63.5 million pounds in November 2009 . In 2013, China's consumer credit market, such as credit cards, mortgages and other loans to individuals, representing 14 percent of earnings in the banking sector.

“Contactless is as revolutionary as the shift to internet payments was five years ago. It will mean having no notes and coins – it will certainly mean having no coins. It will move us almost to a cashless society.” - Steve Perry, Visa Europe

We have seen over the NFC, or near credit cards-field contact. It is estimated that credit cards NFC will reach a tipping point in 2011 with a total of 30 million contactless payment cards are issued only by then British. The ease of use of NFC-compatible card is obvious, there is no slip, no insertion. Steve Perry of Visa Europe, said the growing popularity of contactless technology brings the promise of a cashless society where more people need to take notes and coins with them.

Growth in Contactless Technologies:
We know that Apple is working on an NFC phone, and since their recent tenant of the room, it is assumed that the 5 iPhone will be the platform of change. So how Apple iPhone NFC 5 jobs? We know little about the likely ability of the phone on the basis of certificates issued by Apple. First, demand for payment to a key application integrated into the phone, there will be a biometric strip (probably give fingerprints) and the phone works normally as a smart card EMV.

The question you are probably wondering how the payment mechanism? This is where speculation in large part because Apple is very tight lips. We know that the application of principal payment acts as an interface with your bank or credit card company that you need. However, it does not take a genius to understand that Apple could use its current platform iTunes Store for a stored value of an effective mechanism for debit cards. If Apple were to use this mechanism as the base currency or value stored behind the ability of debit cards to its equivalent in base salary, will become a bank at night, and perhaps even be a differentiation stronger than any other debit card on the market today. Other handset manufacturers and mobile platform providers would be sure to follow in Apple's ability to pay is rapidly becoming everywhere

Apple's NFC iPhone patent
Competing with Apple, Google and Microsoft Mobile :
As banks compete in such an environment? Well, banks can not give my phone, like Apple or Google partner can and plastic cards and checks look very archaic compared to the paradigm of such assistance. Just check card issuers and banks should adopt new technologies and travel to work with handset manufacturers and mobile OS owners. Visa has already introduced their Visa payWave solution for the iPhone, but at the moment you cradle or sleeve for the iPhone sitting in the NFC to get some sexy that simply is not necessary for the new device.

So the question for the banks in this new environment would be how can we now issuing cards to customers? Do they come for us in the industry to set up your phone? Given how easy it is to download iTunes credit, which would be a huge competitive disadvantage, and that compliance with the procedures applied in the current process of issuing physical cards become a millstone around the neck of the bank and lead to rapid disintermediation. Within 3-5 years, banks have no credit cards. Sure, they could eek small settlement payment business from Apple's iTunes store and the bank, but compared to the size of the card now, would be minuscule.

Challenges Ahead for Banks:
What if a customer can download a "credit card" used from the iTunes App Store or Google's market? Well, how do you qualify for the card as a customer, there are applications of different maps for each bank, which is the evaluation and integration risk? Do not be tempted to believe that protection of the existing payment system or a banking license to protect your existing business of such an innovation. If Apple did not launch their NFC phone and announces collaboration across networks Visa and MasterCard, do you honestly believe that millions of iPhone 5 out the door, the controller will stop the payments from a phone? 

Conclusion:
Seriously, if you're a bank, it is likely that in just 8-9 months, which will face competition from non-banks that can make things NFC phone payments much faster, easier and more attractive than could never deliver a flow of plastic card or credit card. And guess what? If you are the CEO of a bank, you probably will not even name someone to work on mobile credit card approach, however, what is the likelihood that you'll be ready to compete?