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Credit Card Applications » News » Other » Mobile Phones to Substitute Credit Cards

Mobile Phones to Substitute Credit Cards

August 13, 2010 | Updated on August 13, 2010
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The content is accurate at the time of publication and is subject to change.

Technology is certainly making life simpler and here is yet another experiment to prove that. The cellphone giants AT&T and Verizone have joined hands with credit card company Discover and Barclays which is a big name in the banking sector in an effort to replace the credit cards with mobile payment system.

This project which is in an experimental stage could change the way we do business if found successful. We will no longer have to carry credit cards which have become inseparable today. The mobile payments field is already being explored by big companies like Visa and Mastercard so that customers can simply use their mobile phones to make payments rather than be physically present and swipe their cards.

This system is no less than a revolution and is hence still in the experimental stage in the US. Certain European countries and also South-East Asia already have the new system in place. The new payment technology will be slowly accepted by people in US who are used to credit cards by now even for their everyday purchases.

The technology which will support this new system of payment is called near-field communications. It will enable customers to make payments through their phone by taking care of the processing them and transferring the amount to the customer¡¯s phone bill.

While companies refused to comment on this change, it is obvious that when players like Verizone and AT&T are involved, change is inevitable. With this technology in place, late payments will become an issue of the past. The innovative approach will come as a service most welcome to the customers since it would mean easy use and convenience making the credit card a redundant commodity.

Mark Siegel, AT&T spokesman said that the company mainly aimed at serving customers better and mobile payments have come as a logical step for the same.

While change would be slow, this project sure holds a promise that could simplify our lifestyle. Further, people in the US who have been finding issues with managing their credit cards may find some relief through this new mode of payment making it more simplified.

This seems to be the beginning of an end to the world of plastic credit cards by slowly adapting to newer and simpler ways. We would not have to worry about lost credit cards if we are able to reduce our dependency on them.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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