Credit Card Companies Face Competition From Mobile Service Providers, Smartphones

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Mobile Service Providers AT&T, Verizon, and T-Mobile are attempting to give credit card companies a run for their money with the planned introduction of new smartphone technology. This technology will allow customers to use their smartphones as payment devices by merely waving their smartphones. Should the technology be successful, credit card companies might have a lot to worry about.

Details about the system functioning have not been confirmed as yet, however, such technology has been planned for a while now in the US, though other mobile systems for paying have been incorporated widely in other countries.

Credit card companies have attempted to release their own version for customers, such as through the use of stickers on the back of cell phones. However there are disadvantages to this type of approach.

According to PRTM consulting firm partner Dan Hays, “Attempts from Visa and MasterCard so far have not been integrated at all with mobile devices. This goes way beyond a sticker on the back of a phone.”