June 26, 2009

RFID Chips on All Phones by Next Year

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by Franz Bicar

So what exactly is an RFID chip? What makes it so important? Well from Wikipedia, RFID, otherwise known as Radio-frequency Identification, is the use of an object applied to or incorporated into a product, animal, or person for the purpose of identification and tracking using radio waves. This would allow phones the ability to open doors to cars or houses.

Håkan Djuphammar, Sony Ericsson Vice President of Systems Architecture, predicted that a year from now, every new phone sold in the market will have RFID chips. It’s a two-way, bio-directional RFID communication link that makes this device work as a tag or reader. Devices with RFID chips will have a secure environment on the SIM card, where trusted identities or secure elements can be downloaded. This will enable phones to take on other roles, such as the keys for your car or house, or a credit card or concert ticket.

Although its just a small piece of technology, RFID can prove to be very useful when used in conjuction with mobile phones. This won’t only give mobile phones the power to open doors and become credit cards, it would also let mobile phones help in detecting credit card frauds. Credit card companies could make use of mobile user location data and IP mapping to ascertain whether a transaction is taking place in the vicinity of the official card holder, thereby judging whether the transaction is likely to be genuine or not.

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