Can phones really replace the credit card?
Today’s young generation may have never used cash for most of their purchases. Credit cards have become omnipresent in all marketplaces and have replaced cash in markets around the world. Most online stores and auctions accept credit cards or PayPal but you will rarely find those that accept cash as a mode of payment. What had started off as an instrument of convenience has now become a necessity for shoppers whether offline or online.
In a big technological leap credit cards can now incorporate a computer chip that stores the credit card number and associated details. These new credit cards can be waved in front of a device at places like gas stations and food counters to make payments and does away with the need of putting down your signature in a lengthy credit card approval process. Waving your card and paying for something that you have bought only takes a few seconds as against a couple of minutes of signing a processed charge slip when you are out shopping.
The latest RIMs technology also incorporates a similar mechanism by which an ingrained chip enables a Blackberry to be used like a credit card. This is a significant development considering the fact that a mobile phone is also used to browse the internet and receive short messages. Advertisements on the internet and promotional messages being sent through SMS play a major role in deciding a consumer’s buying behavior. With the option of paying with the help of a mobile phone market activity will see a boom as mobile payments will become an added way of making payments for the consumer. If all credit cards can be contained in digital form inside a mobile phone people will stop carrying credit cards in their wallets and will prefer to use their cell phones instead to pay for their purchases.
Moreover integrated mobile phones will have details like accumulated points, coupon amounts and much more which will make it easy for people to use it as a mode of payment. No longer will the customer have to look for his coupon or get a voucher along to redeem points that he has accumulated on his credit card.
However due to concerns over security and the fact that merchants and banks may need to change their systems and procedures, it may take time for mobile payments to be considered the norm. But in the long run merchants and banks will also endorse the system as it enables them to obtain details about the person who is making the payment. The new RIMs technology is a step in the right direction which will go a long way in boosting commercial activity with the ease and convenience that it offers for making payments for goods and services.
Below you can view a clever video representing today’s technology adapting with your payments