Bill Bittner

Smartphones Look to Replace Plastic as Payment

August 3, 2010

FROM RETAILWIRE:
Okay, so the gas-powered car killed the horse and buggy as a mode of transportation (excluding the Amish). Video apparently killed the radio star. So what's next to go? According to a Bloomberg report, plastic credit and debit cards may be doomed by smartphones. Will smartphones replace plastic credit and debit cards in the U.S.?      [more...]

I think everyone would agree that competition is good and the idea of an electronic charge method that bypasses the existing network fees is appealing to everyone (except the current providers). What I don't understand is why a cell phone is necessary to achieve this.

So the advantage of using the cell phone becomes merely a convenience issue for the consumer. Is it easier to carry around all your ID information in your cell phone and get rid of your wallet altogether? We already carry pictures and music in our phones. If we could add all our ID cards and use them for payment, I can envision the day when the wallet becomes completely obsolete. Combine this with an unlock feature for automobiles, door locks, etc. and the cell phone can also eliminate keys. Finally, you need a tethering feature so that if you walk out of range from your phone it will begin ringing and shutdown before someone else can use it.

Yes, I can see the cell phone replacing wallets, credit cards, cash, IDs, etc.