Club Management - September/October 2007 - (Page 48) POS continued from page 39 credit cards, debit cards, loyalty cards, prepaid cards, hybrid cards or other settlement media, the cell phone will be used to settle transactions. Transmitting payment information via cell phone to a POS terminal is sufficient cause for concern, but concern is compounded by the possibility of losing the phone. The solution may well be a biometrically controlled cell phone that requires the user’s personal attributes to activate settlement. NFC Applications Designed to quickly link dissimilar electronic devices, NFC technology is capable of altering the functionality of cell phones and PDAs. NFC-enabled devices can be linked with contactless payment systems, online concierge services, Web site download content providers and club member services. NFC-enabled applications – being developed and tested by Nokia, Motorola, Philips and Sony – can be divided into four broad categories. 1. Touch and Go. Applications that merely require a device equipped with access information be brought into proximity of a reader. Examples: club event ticketing, security access coding and smart-label reading. 2. Touch and Confirm. Applications such as mobile payments where the user has to confirm acceptance of a club transaction and/or enter a password to verify and authorize payment. 3. Touch and Connect. The linking of two NFC-enabled devices for peer-to-peer data transfer. Music downloads, image exchanges and address book contents, for example. 4. Touch and Explore. NFC devices can offer multiple functionalities. The user is able to explore device capabilities to select the most appropriate function or service. Cell Phone Cell phone manufacturers are experimenting with several formats, including hardware modification (shell casement and fi ngerprint authentication) and software add-ons (custom shortcuts and voice authentication). Although in its infancy, innovative cell phone POS 48 • CLUB MANAGEMENT technology is expected to become the next-generation solution as young consumers, already cell phone dependent, dominate the marketplace. A real fear associated with cell phone settlement is the threat of misplacing or losing the handset. Phone absence also could mean loss of transaction functionality. Security concerns point to a need for better authentication methodologies, including fi ngerprint authentication and voice authentication, so that lost equipment is rendered unusable. Shell Casements — Handset transaction-processing can be accomplished through placement of an outer casement with an embedded chip over the phone. The outer shell uses NFC technology that allows for contactless payment by pointing the phone at a specially modified POS terminal. NFC technology evolved from a combination of contactless identification (RFID) and interconnection technologies. Payment information, such as debit or credit card detail stored in an integrated chip in the shell, complete the transaction. An example of an enabled phone is the Nokia NFC shell for Nokia 3220 phone. The shell allows the user to conduct transactions simply by touching a qualified POS device. The user’s payment credentials, such as debit and credit card account data, are securely stored in the integrated smart card chip of the shell and exchanged during the transaction. The shell is compliant and interoperable with standard contactless smart card applications. Fingerprint Authentication – An innovative cell phone with a fi ngerprint chip at its base requires the user to swipe a fi nger across its surface before the phone is operable. NTT DoCoMo Inc. has developed such a phone that is being marketed in Japan for use as an electronic wallet and to activate withdrawals from cash machines. The DoCoMo F505i and F901iC feature fi ngerprint scanning panels to prevent unauthorized handset use. The user can lock or unlock the cell phone simply by placing a preregistered fi nger on the sensor. Up to 10 fi ngerprints can be registered for authentication on a single phone. Once activated, the phone can be used to conduct transactions and exchange proprietary information. Voice Authentication – Cell phone voice authentication is keyed to recognizing characteristics of the user’s voice and thereby activating the device. Although considered a low-to-mediumlevel identification technique, little modification is required as the necessary hardware is already in place, and improved software is evolving. This approach allows speaker-verification based on stored data burned onto an existing microprocessor within the cell phone. A factor hindering application, however, is the questionable quality of cell phone microphones not proven capable of supporting voice recognition nor reliable enough to sort out voice input within a noisy or busy environment. A provider of voice authentication software is Voice Security Systems. Its approach involves obtaining a voice template of the user captured through the microphone of the phone. The company cites its approach as low cost since the recording of a voice template does not require extensive software or ongoing maintenance to keep it operational. Summary As contactless payment technology options continue to emerge, innovations in RFID processing, biometric mapping and cell phone settlement may change the way clubs chart, monitor and track member relationship management. As passive RFID applications, dynamic signature cadence and mobile devices are implemented, several unintended applications can be gained. As clubs renew their interest in POS systems, it is imperative that system capabilities be known and matched to management needs. ❚❘ About the author Michael L. Kasavana, Ph.D., NCE, CHTP, is a NAMA professor in hospitality business at Michigan State University’s School of Hospitality Business.
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