Goodbye Credit Card, Hello Mobile Wallet

More than forty years since we were introduced to the credit card, a new revolution in shopping is bubbling under the surface.  As early as this summer, we could be paying with a simple wave of a phone.

The technology will allow consumers to make purchases by waving their mobile phone over a till scanner. Barclaycard and the UK’s biggest mobile phone network, which includes Orange and T-Mobile have signed a partnership to bring the system to 40,000 tills.  Mobile phone networks and banks are in talks with the manufacturers including Apple, BlackBerry and Nokia about incorporating the technology into their devices. 

The system uses a tiny chip and antenna built into the phone, which links the handset to the owner and their credit card or bank account.  The antenna sends a radio signal to a till scanner which recognises the handset, authorises the payment and then deducts the money from the owner’s account.  Customers will be able to increase their security with an optional PIN.  Initially there will be a £15 cap on transactions but the banking industry expects this to rise. 

Are you comfortable with another move towards the mobile being a must-have tool in modern life?  Handsets have already gone beyond calls and texts with video, music and internet access, but are you ready for a virtual wallet?