Introduction of smartphone credit cards moves another step closer

The widespread introduction of smartphone-based credit cards looks set to gather pace this week, as two major companies announced details of a potentially landmark project.

Vodafone has joined forces with Visa to create the world's largest mobile payment deal.

A number of Aussies are still wary about the concept, even though technology experts such as Elaine Moore from FT Money in the UK believe that mobile phones are seen as the "brave new world of banking".

With two prominent companies championing mobile payments, it seems likely that more people will embrace the technology in the near future.

It is generally thought that contactless payments will be limited to small purchases in the early stages of its development, although it could be made available for bigger transactions as it evolves.

Chief executive at Vodafone Vittorio Colao believes that mobile phone payments – which utilise sophisticated near field communications technology – can change the way people pay for items forever.

"The Vodafone mobile wallet represents the next stage of the smartphone revolution," he remarked.

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