AT&T and Verizon Smartphones To Compete with Credit Cards

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smartphone-act-as-credit-card-1Ever run out of your house and forget your cell phone as if it was your wallet? I have done it many times and now your spartphone may actually act as your wallet in the form of a credit card. That’s right, AT&T and Verizon are geared up to go after credit cards with their smartphones. Basically you can use your cell phone as your credit card with this new technology.

Essentially this type of technology allows your smartphone to act as a credit card simply by waiving it in front of a wireless reader instead of swiping your plastic credit card. Not many details have been released about this technology other than it would likely use a unique radio frequency identification (RFID) tag embedded on the smartphone. The RFID would obviously be associated with the customer’s credit card account.

This technology is actually not new but it will be new to smartphones. There have been other similar methods of using your credit card via a device that uses a unique RFID such as the key chain swipe passes. You may remember them being used to pay for gas at select gas stations across America.

“Attempts from Visa and MasterCard so far have not been integrated at all with mobile devices,” said Dan Hays, a partner at consulting firm PRTM. “This goes way beyond a sticker on the back of a phone.”

Video: Traditional Credit Card plugin for smartphones or iPad

If this new idea and marriage of the smartphone and credit card actually “works”, then we could see a very successful business venture that changes the way companies conduct transactions. Just think, your iPhone or latest Droid phone acts as your credit card and then possibly in the future it is your ID card too. You can now leave your wallet at home and feel good about it.

Would you adopt this new system if it becomes available or do you think it is too risky or they are asking for problems?

Source: CNN Money

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