USB flash drive payment system hits South Korea

We've definitely seen some outlandish attempts at improving or outright replacing the humble credit card, but South Koreans will soon be able pay for purchases using the most easy-to-lose system we've seen yet -- by inserting a special USB flash drive into a slot. The system, which is being rolled out by Shinhan Card and Visa, also lets users pay for online purchases by sticking the drive into their computers' USB ports, and Shinhan is also rolling out new terminals that will enable contactless payments using the device as well. Of course, the drive itself is locked down tighter than a drum, but we still aren't convinced a bulky flash drive is a better option than phone-based or biometric payment systems.

[Via The Raw Feed]

[Dankoozy @ Dec 29th 2007 9:10AM]

better than invasive biometric systems that are permanently bound to one person? totally

but this USB drive is still a solution looking for a problem and like most things in South Korea it probably requires a special program that only runs on Windows to use it.

[wickedpheonix @ Dec 29th 2007 9:52AM]

invasive?! just scan your eye or flick your thumb and that's it. The thing about biometrics is that they are still relatively insecure - false negatives, that sort of thing - and are still able to be faked with little difficulty unless you want to buy a highly advanced system (like the kind the government uses) but those are prohibitively expensive for small businesses.

Putting credit info on a cellphone isn't the answer either, it's not going to make you stop using your wallet or make transactions any easier or more secure. Point being, phones can be hacked (read: it doesn't matter how good your encryption is, anything and everything is hackable) whereas a card cannot; plus, phones are just as easy to lose as your wallet.

What we really need is something in the form of an RFID chip in your hand, but more secure than RFID and not something that would cause cancer. Getting one should be as simple as a 5 minute visit to the doctor's office with a little anesthetic, bury it under the skin, and then sew it up. Doing so would allow you to just wave your hand over a sensor to buy something and leave the credit card at home for online purchases. Only thing is how to allow the user to turn off the chip so that passerby with a wand can't pick up everyone's credit card info - perhaps making the chip 1 of 2 parts, the other part being some large number that the user must memorize and enter into a pad while purchasing (note: library cards here are 14 digit numbers, to use a public computer you have to enter them manually so after about 5 times of doing this you have your card memorized)? Only thing then is finding doctors to do the procedure and getting retail to get sensor/pads.

[Wwhat @ Dec 29th 2007 10:28AM]

HAha, you think cards cannot be hacked? well I guess that's true, no need to hack them since you can just copy them and there's nothing to hack really.
As for implanted RFID, I'd take an axe to anyone that suggested that to me for real.
But people that like that idea should indeed be tagged, and put in a controlled environment IMHO.

[BigD @ Dec 29th 2007 9:14AM]

Nice. I have an account with Shinhan Bank, and this seems like it will make online transactions easier. Online banking is quite a hassle, as you need to store your certificates on whatever computer you plan on using. In addition to that, you have to carry around a secret pass card, so that they can ask you for specific digits to verify your identity.

Hopefully this will make things a little bit easier. Hopefully.

[Kaminix @ Dec 29th 2007 9:25AM]

I would never trust or use this... yes, I dare say never! :o

[James Yopp @ Dec 29th 2007 9:38AM]

Bulky? It looks like the drive is on a cell-phone handstrap string, and I don't see any way that a cap or anything can be removed, so the size appears to be very, very small. I'd have to guess the thing is only 2cm long (0.8") and otherwise sized to fit straight into a USB port as-is.

[Siddharth Chatterjee @ Dec 29th 2007 10:30AM]

Exactly... It probably just fits right in. That's pretty small if you ask me, although if they had to migrate to something brand new, they could have chosen a mobile-based payment. Far more convenient since practically everyone carries around a cellphone these days.

[giuliop @ Dec 29th 2007 9:46AM]

And if the shop hasn't got a computer, you just make the cashier turn around and then... oh well.

[Tony @ Dec 29th 2007 10:26AM]

Will this be used at like, gas stations? Well, it would be easy for someone to simply solder four wires onto each of the four pins and 'jack their information with a bit of hackery.

[af241 @ Dec 29th 2007 10:35AM]

gold and silver coins are gone. but i still prefer having solid paper cash in my wallet over vertual cash hanging from my neck.

[kombizz @ Dec 29th 2007 10:40AM]

what a great idea.

[InnocentBystander @ Dec 29th 2007 11:20AM]

Anyone remember credsticks from Shadowrun?

[passer by @ Dec 29th 2007 12:00PM]

memory stick and secure? ......words don't match....

my classmate made a simple program to copy all the data of a memory stick whenever it is connected to his computer. ..

You have to trust the DEVICE, which processes your password. And 'GENERAL' PURPOSE computers are definitely not trustworthy...

Some scheme like ... holograms depicting genuine credit card machine or memory stick reader ... should be added so that user can trust the device ...

[Jo @ Dec 29th 2007 12:52PM]

really a great idea - could this be the new credit card?

[KC @ Dec 29th 2007 2:37PM]

Is the picture a mock-up? I don't see the removable cap to reveal the USB connector.

From the wireless icon, I think this is a "contactless" wand, where you swipe it over some other devices that are connected via USB that are installed at the franchise stores.

[Weedo @ Dec 29th 2007 3:09PM]

I'd much prefer credit cards over this, they are small, light, and fit in my wallet with all of my other stuff!

[Richard van Buren @ Dec 29th 2007 6:01PM]

@Those that don't see the removable cap protecting the USB connector... Clean your glasses, just a few mm under the VISA and the wireless logos there is a fine line, that is the place where the cap ends...

Regarding the security of this, and other payment methods: It is as secure as the owner / user treats it, if you are a sloppy owner of a wallet and leve it in places where you can't ontrol it... you might find its contents gone one day; if you have a chip in your hand... well, the remark about the ace should tell you enough, and if you have this device and don't treat it responably... you might find out that someone robbed your account!

Richard

[Sirius @ Dec 29th 2007 10:38PM]

I think the reason people can't see a USB cap is because there is none. The stick itself will probably have 4 metal contacts on the other side which will fit into the slot in the USB port. A couple of my friends have flash drives that are like this. I nearly bent one of them when I stepped on it :P

[Richard van Buren @ Dec 30th 2007 10:43AM]

I agree that this is a "super-thin" USB device but, in order to be anble to connect on USB, it must have a suitable - be it barebone - connector, which is protected by a cap at the end of the device with the logos... and that cap I was referring to.

[MemoTrek @ Jan 2nd 2008 1:42AM]

Sleek design on this one. Are we going to see the USB interface becoming more common also for other applications out there? E.g for frequent fly programs, as hotel/room keys or for payment in stores? With room for applications running from the USB memory drive and enough space for storing of data I think we are still to experience some further USB innovations during the next years.