Technology is advancing and so is your credit card. Visa and MasterCard announced separately on Wednesday that they would be introducing Internet-based technologies to make it easier for shoppers to buy things at retail stores. Instead of pulling out a credit card, consumers will have a mobile app to make purchases. There will be no need to swipe a card or put in a PIN number.The customer can just make a purchase by tapping the phone to a store’s card reader.
How will this affect me?
Switching from plastic to phone would be a whole new way of doing things. Consumers would no longer have to carry their credit cards around with them. Instead, they would have a retail or banking app on their phone that retrieves what is needed to complete the transaction. Both Visa and MasterCard have announced that they will provide app developers with a service that has card information stored on their servers. This app will incorporate payment capabilities. Customers can then use the app on their smartphones at stores, transit systems, and other places that would accept contact-less payments. They will show the app, and a store’s card reader will scan it and make the payment.
Why would I want to use my phone instead of my credit card?
Experts say that having a phone app offers much more security protections than your plastic credit card. With a phone app, your information is securely stored. Your card number is stored in an encrypted form that can easily be disabled remotely if your phone is lost or stolen. However, with a credit card, there is much less protection. If your card is lost or stolen, you must report the fraudulent charges to your credit card company and wait, while in the meantime having no access to that money. In addition, the identity thief has complete access to all your credit card information. Mobile systems will help prevent this access. They will also allow you to use one-time card numbers, which will not work for additional transactions and are useless if your computer or phone is hacked. Overall, using your phone can help protect you in the event of identity theft. And it’ll be simpler, because now you’ll have one less thing to carry.
Will credit cards soon be gone?
Although using your phone to pay for things will be a great alternative to credit cards, it looks like credit cards will be here to stay for awhile. It may take some time to get the technological kinks worked out. As of now, the technologies tap a new feature in Google’s Android operating system, known as near-field communication (NFC). Many Android phones have the right system, but Apple’s Iphones do not. They will need to change the information from being stored on a secured part of the phone to being stored remotely on an app. In addition, some US carriers have made it difficult to get access to Google’s NFC-based apps. They will have to make it widespread, so all cell phones can incorporate the apps into their phones. And it will definitely take some time until consumers catch on to this way of paying.
Although credit cards may not be obsolete yet, you can expect more mobile payment options than ever this year. And if Visa and MasterCard are doing it, you can be sure that other credit card companies will be soon to follow. It looks like we’re on the way to a more mobile way of paying for things.
