NXP Technology

[hardinda]

Has anyone done an research on this technology which may be the future of using smart phones to make payments? Just wondering if there are some good companies out there to invest.

I've seen NXPI which seems to be the hardware maker for the technology. Just wondering if there are any other insights.

[hardinda]

Took a flyer on some NXPI stock as it seems like a good buy right now. Google wallet is using the NXP chip on it's upcoming Nexus S phone. Seems like a good long term buy.

[axjoke]

Originally Posted by hardinda

Took a flyer on some NXPI stock as it seems like a good buy right now. Google wallet is using the NXP chip on it's upcoming Nexus S phone. Seems like a good long term buy.

Is the next nexus going to be Motorola? Was the first one HTC?

I had actually never heard of NXP until your post but it sure sounds interesting.

[hardinda]

http://www.wallstreetdaily.com/2011/...payment-space/

Here is an article from today about NXP and their partnership with Google wallet and certain smart phones:

Why Google Wallet Will Own the Mobile Payment Space
Published Thu, Sep 22nd, 2011 Justin Fritz


Almost four months after Google (Nasdaq: GOOG) first revealed its new mobile payments application, Google Wallet, the app is finally rolling out to the masses this week.
In case you missed our previous breakdown of its technology, here’s a quick recap:
You simply download the app onto your smartphone and create a PIN code to make purchases – just like you would for a debit card. Once everything’s approved, you simply tap the phone to a MasterCard (NYSE: MA) PayPass terminal and presto! You’re good to go.
So if you have an Android smartphone with a Near Field Communication (NFC) chip built in, you can start tapping to pay sometime this week.
Unfortunately, only a few smartphones – including the Samsung (SEO: 005930) Nexus S and Nexus S 4G – currently have the revolutionary chip built in.
That’s why competitor services like PayPal, Square and the ISIS platform from Verizon (NYSE: VZ), AT&T (NYSE: T) and T-Mobile are hoping to swoop in and corner the mobile payment market. And many experts are predicting that they could do just that.
But they’re dead wrong!
I’m not convinced that any of these services can compare to what the Google Wallet platform has to offer. And here are three reasons why:
~ Reason #1: Credit card partners are piling in.
Initially, Google Wallet’s only credit card partner was MasterCard, meaning users from other card companies would need to load up a pre-paid card within the app to use the service.
But on Monday, Google announced that it has teamed up with Visa. Better yet, Discover and American Express are joining the party soon, as well.
~ Reason #2: Google security is second to none.
Not all Google Wallet competitors are using NFC to conduct transactions. And that’s a huge mistake… because Google’s NFC chip, made by NXP Semiconductors (Nasdaq: NXPI), adds an extra level of security to your transactions.
Basically, the chip is isolated from the rest of the phone’s hardware and operating system. That means only Google-approved software can access it. Also, the communication between the chip and the bank is encrypted three times over, making it just about as secure as an ATM machine.
~ Reason #3: More NFC-enabled phones are on the way.
Very soon, the lack of NFC smartphone options won’t be an issue. Consider: If Google’s recent bid to purchase Motorola (NYSE: MMI) gets approved, it can make sure NFC is installed in all upcoming Motorola Droids.
Plus, NFC Rumors reports that T-Mobile is gearing up to release five new NFC-enabled smartphones by the end of the year. Microsoft(Nasdaq: MSFT) and Sony (NYSE: SNE) have followed Google’s lead and partnered up with NXP Semiconductors to get NFC chips into future devices. And other NFC enabled smartphones from LG (NYSE: LPL), Acer (TPE: 2353),Nokia (NYSE: NOK) and Research in Motion(Nasdaq: RIMM) are also in the works.
So as NFC infrastructure improves, and more people realize its capabilities, I’m convinced that Google Wallet’s superior platform and security benefits should ensure its domination in the mobile payment space.

[axjoke]

"Google Wallet’s only credit card partner was MasterCard, meaning users from other card companies would need to load up a pre-paid card within the app to use the service."

They go on to mention a bunch of other CC's. I assume this is meant to work by attaching it to a standard credit card and not just prepaid crap?

I've never had a CC with the wave chip tech. I've heard that people can steal the info by walking by you with some sort of device. Is this just an urban myth or real concern? I can't see CC's pushing these if it was easy to steal the CC information so I assume it's a myth.

Must say the tech has me excited. I would probably go that route over pulling out a CC when possible.

NXPI a fabless company?

[hardinda]

I think this part is the key to why NXP is ahead of the pack in the technology:

Not all Google Wallet competitors are using NFC to conduct transactions. And that’s a huge mistake… because Google’s NFC chip, made by NXP Semiconductors (Nasdaq: NXPI), adds an extra level of security to your transactions.
Basically, the chip is isolated from the rest of the phone’s hardware and operating system. That means only Google-approved software can access it. Also, the communication between the chip and the bank is encrypted three times over, making it just about as secure as an ATM machine.

I still think it's a bit of a flyer, but my overall thought is the smartphone will end up being your go to gadget and making it your credit card holder would be nice.

I believe that Mastercard is currently the only non-prepaid crap card supported right now, but looks like AMEX, Visa and Discover aren't far behind and I doubt they would want to miss out on the party.

[Kenny]

Originally Posted by hardinda

I still think it's a bit of a flyer

What does this mean?

[axjoke]

Originally Posted by Kenny

What does this mean?

Gamble?

[hardinda]

Originally Posted by axjoke

Gamble?

Yes, gamble. Take a flyer = take a risk

[axjoke]

Originally Posted by hardinda

I still think it's a bit of a flyer, but my overall thought is the smartphone will end up being your go to gadget and making it your credit card holder would be nice.

I agree, I find myself using my phone more and more to the point where I don't feel the need to take a laptop with me when I travel (non work). Also in line i frequently have my phone out and am reading something... so the card swipe at the end of the checkout would be a natural extension.