Swiping Mobile Phone to Make a Purchase

According to the report of the Business Week, American Telecoms operator AT&T Company plans to jointly invest in the developing of smartphone payment series with Verizon wireless and T-mobile. The credit and other traditional methods of payment will be replaced before long.

The report said that AT&T and other operators haven’t revealed the specific timetable of the system at present. The company will build a set of testing system in Atlanta and other three American cities.

Sources said that though the technology details haven’t been settled, the service would greatly facilitate the users to go shopping. The users can make payments as they position the mobile phone close to the electronic reader device.

The industry consultant Richard Koeln believed that the mobile payment system would fully change the market pattern of the financial market and the mobile operator would be the biggest winner.

Discover Information Technology will be responsible for the whole transaction. The company is the fourth largest payment company next to Visa, Master and American Express. The Barclays Bank in London will help to manage the customers’ accounts.

The wide retailers will be the largest supports of the technology innovation. The report said the retailers were not satisfied as the Visa and Master charge high payment expense in the long term. The master of the American retail business Brian said that the smartphone payment system would low the cost of retailers.

It’s reported that the price of electronic reader is 200 dollars. The production cost of mobile phone with the embedded chip will increase by 10 to 15 dollars. The bank industry insiders think the cost is valuable to the retailers. They can release the promotion information to the customers through the mobile phone timely and exactly.

However, it takes time for the new payment method to serve in the market. The consumers should learn that enough retailers have accepted the mobile payment system. And the retailers can only apply the new technology after the cost is recognized to be reasonable by a large number of consumers.