Mobile Phones Instead of Credit Cards?
Technology seems to be moving at a faster rate than ever. In recent years we have begun to see the emergence of credit card payments on mobile telephones, could this be the technology to revolutionalise retail? If there is a change in the way credit card payments are made it could mean big changes for the retail sector.
Allowing credit card payments from mobile phones could be really useful for small businesses; it could save them a lot of time and money, as well as reducing the ability to commit credit card fraud and providing a safe way for customers to pay.
In Japan they have been paying for things with mobile phones for a while. Mobile phone companies have teamed up with companies like McDonalds to offer electronic payments via mobile phone to customers, with exclusive offers and discounts for those who do so. The Japanese have long been using mobile phones to pay for train tickets, with money being deducted from their mobile phone contract rather than their bank accounts.
Whether this type of payment would ever catch on in the west remains to be seen - a recent American survey showed that fifty-seven percent of those who receive bills from mobile phone and credit card companies believe credit card companies are more trust-worthy than mobile phone companies in terms of accurate billing.
The survey also found that half of Americans who own a cell phone believe that it is relatively safe to make a purchase through this medium, a further quarter saying it was very safe to pay with mobile phones.
One way or another, mobile phones are likely to ultimately replace credit cards, whether financial administration is dealt with by the credit card company or the mobile phone company. It would be relatively easy to link a phone with a bank account, although it would require communication and cooperation between phone and Credit Card Company.
The benefits of safety, security and ease-of-use may be unjustified in this instance though. How much easier is it to pay by phone than card? Many people have been doing more and more online banking in recent years, and in the last year or two phones have become the new personal computers.
In the same way that criminals and fraudsters have infiltrated online bank accounts, their attention will eventually turn to mobile phones. Mobile phone viruses already exist, so do you really want your bank account linked with an unsecure piece of technology which is connected to the internet?
About the Author
Cardsave is the largest independent provider of credit and debit card processing facilities to small and medium sized businesses in the UK.
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