There are reports that pretty soon your smartphone could double as your wallet supporting payments via smartphone swipes in front of contactless card readers. AT&T, Verizon and T-Mobile are said to be partnering with Discover Financial Services, makers of Discover Card, and Barclays PLC, a global retail banking company, to test the concept in stores.

While there have been other mobile payment initiatives – Starbucks enables some customers to pay with their iPhones at select stores, and MasterCard has the MasterCard PayPass- this carrier-backed mobile payment system could serve as a major disruptive force to the status quo when it comes to credit card transactions, an area primarily dominated by Visa and MasterCard. This however may be welcome news to the many retailers who have spent years fighting transaction fees by Visa and MasterCard.
Bloomberg cites a recent study by Mercatus LLC, a Boston-based consulting firm, which states that mobile banking and payment technology is reaching a ‘tipping point’ with younger consumers leading the way. The reports suggests more than half of U.S. consumers, and almost 80 percent of those between the ages of 18 and 34, will use mobile financial services within five years.

 

So what do you think? Would you feel any more or less comfortable paying with your smartphone?