One of the most important parts of high technology is its capacity for miniaturization. Computing power that once took up large portions of a room can now be exceeded many thousands of times over by a humble smartphone, and this pattern is reflected all over the tech world. More relevant for us here at Fintech Zoom are the implications that this could have in the world of financial technology.
Specifically, we were curious about what miniaturization could mean for how we purchase goods directly and in person. What’s the smallest system that could work here, and how likely is it that this will be the accepted path forward? There are some interesting components to consider, and the answer’s not as straightforward as we might think.
The Technical Limit
The smallest technology that we have available today to process payments comes from RFID chips. This is what is used in contactless card payments, as the near-field communication scanner in a system reacts with the radio-frequency identity of a card. You can see the physical chip on these cards, as their size is developed for ease of use, reliability, and mass production. If pushed to the limit, these chips can be made much smaller.
Current records for the smallest active RFID chips exist on the micro level, measuring just 0.3mm by 0.3mm. In theory, this could mean contactless payments could be managed by a tiny chip worn on a fingernail, or even implanted within the skin. This being the current limit, why isn’t it something we see the financial tech market moving towards?
Form and Function
Ultimately, the reason is that smaller technology isn’t necessarily the most usable technology. Consider mobile phones, which before the advent of smartphones, were expected to grow ever-smaller. When smartphones arrived, their improved functionality was incompatible with tiny screens, so a newer balance had to be found.
We can see a direct illustration here in the types of software on mobile phones that have remained popular over their entire lifespan, like online casino gaming. New casino no deposit bonus websites and games are light enough to run on extremely humble devices, but they wouldn’t be especially useable on tiny screens. Collecting bonuses like free spins on services like Sky Vegas and 777Casino is improved on screens with better visibility, and playing games is also facilitated. This same idea applies to financial technology, though it can vary depending on what exactly the user has planned for the day.
For example, if a user is going out on a regular day, then mobile payment systems like Apple Pay add no extra weight to a regular carry, being accessible through a standard iPhone. On the other hand, somebody out for a run might opt for a lighter option, such as the same Apple Pay system accessed through a smartwatch.
However far technology develops in the future, the final resting place of technology appears tied to our regular daily carries. For most of us, this means the software inclusion within smartwatches or smartphones, though there is another potential step here for those who adopt the new generation of smartrings. Outside these boundaries, the further miniaturization we’re already capable of offers few appreciative advantages. There could be options in implants, but whether or not society will accept this conversation any time soon is another question, with another set of legal and ethical concerns.