Smartphones could battle credit cards

by Ed Bowsher on 04 August 2010  |  1 comment
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Barclays is apparently working with several US phone companies to test technology that enables people to buy things simply by waving their phone at a reader.

Credit and debit cards have pretty much killed the cheque, but their dominance may prove to be short-lived. Smartphones may usurp cards in the years to come.

According to a report in the Telegraph, Barclays is working with three leading US telecom companies on a trial of smartphone payments technology. A radio frequency identification (RFID) tag is inserted inside a phone which enables it to be linked to a customer's bank account.

If the trial lays to rest security concerns about this method of payment, I'd be very happy to pay with my phone. I can see it taking off over the next decade. Indeed, the Telegraph says that phone-based payment is already popular in Japan.

One to watch.....