Will 2011 see mobile phones replace credit cards?

Friday 31 December 2010

Article by Mozo

Australians currently comparing credit cards to ensure they are getting value for money could be among those interested in a recent forecast by industry experts.

Will phones replace credit cards

In an article in the Herald Sun, Jennifer Dudley-Nicholson explains that technological advancements could soon see credit cards replaced by new mobile phone functions.

The news could prompt tech-savvy credit card users to switch provider in order to benefit from the new technology.

A number of firms including Visa are currently using contactless payment terminals in various retail outlets across Australia and Ms Dudley-Nicholson claims the technology will soon feature in smartphones.

"Called near field communication (NFC), the technology uses a chip to send a high-frequency signal that reaches ten cm from the phone. That signal can be read by a store's credit card terminal to make small payments," she explained.

It comes after Google chief executive Eric Schmidt confirmed the company's next smartphone, the Nexus S, will feature an NFC chip.

"You will be able to take these mobile devices that will be able to do commerce and, essentially, bump for everything and eventually replace credit cards," he told the newspaper.

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