Orange and Barclaycard have announced that they are developing a new mobile phone payment system that could replace credit cards. Customers will be able to pay at retailers by waving their handsets against special readers.
With payment system provided by MasterCard, initial plans will allow customers to use their mobiles for payments of up to £10 at retailers with the proper readers. Barclaycard is in talks with a variety of handset manufacturers for the service, but has yet to announce any definite partners.
From the release:
Antony Jenkins, CEO of Barclaycard, said: “There has been a lot of talk about mobile payments and now it’s going to become a reality for our customers. because of Barclaycard’s commitment to contactless technology and the coming together of two dynamic and imaginative organisations. I believe that all our UK customers will be able to use their mobile phones to pay for everyday items within three years.”
Tom Alexander, chief executive of Orange UK, said: “Today you pay for things by cash or on your credit card. Tomorrow, you’ll use your mobile to buy the things you want, whether that’s on the high street or the internet.”
What we think?
Both the benefits and drawback of this are staggering. The security issues are a first thought, but Barclays has been working in that field for a long time, so it’s obviously confident. If this really works, than it will make your mobile device even more central to your life. And if it works, I reckon it’ll be a service everyone will want a part of. People are already comfortable with the idea of mobile banking, whether by voice or text. Turning your phone into your credit card seems the next logical step.
Making a single device this important is probably inevitable, but I don’t know if it’s a great idea. I assume that there will have to be a PIN system involved here. Otherwise if someone steals your phone they wouldn’t just be stealing your contact list, they’d be reaching straight into your bank account.
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This is a great idea but I worry that if my phone packs up or the battery runs flat I won’t be able to pay for anything so I would need a fallback – cash or a card perhaps?
One upside not mentioned i the article is that the phone could have an encryption system that generates a new PIN every time you use it, rendering stolen PINs useless. Of course, if your phone was stolen or compromised wirelessely you would have a problem, but that has to be less likely to happen.
Maybe we wil get retinal scan or fingerprint scanning on the phones rendering a stolen phone useless. Looks like an exciting technology area and any attempts to reduce costs whilst making our financial transactions more secure is to be applauded and welcomed in these tough times.
Nothing is un- achievable under the sun on this earth. Definitely our dedicated/talented professionals are fully empowered to get the desired results when direction & investments are made in the right perspective. The mobile enabled credit cards system can be made fool proof definitely.
MY CONGRATS TO THE TEAM @ Barclaycardus.