AT&T and Verizon Smartphones to Displace Credit Cards

 

By Posted 2 Aug 2010, 13:09

The age of the credit and debit card could be coming to an end – well if AT&T, Verizon ad T-Mobile has anything to do with it. All three cell phone carriers believe that they have something that can take on and replace Visa and MasterCard, and that is the smartphone.

The three U.S. carriers have been working with Barclays Plc and Discover Financial Services on a new system that will utilize the benefits of the smartphone – trials have been taking place in Atlanta along with another three cities, and will be as simple as waving your smartphone over a device.

Peter Eichenbaum and Margaret Collins from Bloomberg have been looking into this and have been speaking to a few experts, with one suggesting that this could be a game changer, currently there is said to be 1 billion credits cards in circulation.

The cell phone carriers already has plenty of experience when it comes to processing payments, this is seen as the next logical step considering how reliant we now are on the smartphone. Would you replace your credit or debit card in favor of paying with your smartphone?