Credit cards likely to go into oblivion in the near future

Credit cards are likely to go into oblivion very soon as the end is near. With all the technological advances that we have made with the iPhone, Droid, and Blackberry phones that are used to buy a hotdog or have a Starbucks latte etc, the credit card for sure is on its way out.One might not think twice to pay at the cash register using their cell phones instead of reaching for the credit card.

Michael Abbott, CEO, Isis – a new mobile payment network has stated that the credit card hasn’t changed much since the age of vinyl records and he feels that the time has come to make the shift from plastic age to the digital age.

Companies have already been experimenting with the contactless mobile payments for many years. 2011 is the year when technological advances would be made as per expectations, when the latest technology takes off.This is due to the fact that millions of contactless phones are likely to be shipped out in 2011.

It is expected that the pay-by-phone method will reach around $22 billion in transactions by the year 2015, which is up from none last year, according to reports by the Aite Group, a research firm.

George Peabody, Director, Mercator Advisory Group was quoted as saying that mobile payment would get really interesting as a lot of activity is expected this year.It would bring about a revolutionary change as more and more people are expected to leave their homes without their wallets.

But this switchover will not happen overnight, stated Jane Cloninger, Edgar Dunn & Co, a consulting firm that specializes in financial payments and services.

She stated that the mobile wallet will certainly replace the plastic eventually but it will take time as consumers will take a longer time than expected to make the switch.But at this stage, she feels that the momentum is there to take things forward and it would certainly move beyond the trial runs and into reality.

Most of the company majors such as MasterCard, Visa, Google, Bank of America, U.S. Bank and Citi are all testing these contactless phones and it is expected to roll out this year.

This year 2011, is expected to be a dynamic and an exciting year with contactless mobile payments hitting the scene, and all the players will position themselves in different ways; that would redefine the world of digital payments.

Jennifer Brown

Jennifer Brown, an external business consultant working with a Fortune 500 company, has years of experience to her credit. Despite having a busy schedule through the day, she takes time out to write articles dealing with credit cards, payday loans and other financial aspects. She has completed her Bachelor degree in Financial Services from Columbia University and has been actively involved in various activities for the betterment of society.