Mobile phone to replace Debit and Credit Cards

  Some of the mobile phone operators are coming up with a standardied payment system that couls see mobile phones used for day to day purchase, similar to your Credit or a Debit card.

   45 of the world' top mobile phone companies as per The world GSM Association has announced to have committed to implementing this technology. As SIM based payment systems are secure and possible much faster as per the Near Field Communication Standards (NFC).

 For a long time now, NFC Technology which is a data exchange system has been encouraged to replace credit cards and traditional cash payment arrangements. In countries like India, China, US and other emerging markets this seems to be a very helpful system among the masses.

  All this system now needs is standardization based on Handsets, SIM specifications, Operating systems and manufacturing standards for certain operators to fit in. The adoption of NFC is now being accelerated to see an end to credit cards. Cell phone manufacturers such as Apple, Dell, have stated that the lack of a standard is the only reason that is hampering development of NFC in their devices.

 Though this is an effort to seamlessly improvise payment methods, this also seems to replace credit cards. However, Banks see this as a positive change as they admit that there will be more sales and transactions with the introduction of this system. "Everyone own a mobile phone and everyone does a transaction, its a good boost to the Banking Sector" said a Telecom Banking specialist from Citibank.

 ABI Research says that by 2015-2016 85% of all new point of sale terminals shipped during this year will be NFC-enabled, which also will have RFID capabilities, which means the consumer will just have to flash his cellphone at malls, big marketing chains, theatres etc., to make a purchase.

 "NFC will enable a wide range of innovative and exciting new services and applications, such as mobile, ticketing, entertainment services, secure access to hotels or cards, loyalty schemes and couponing, among others", said Franco Bernabe, CEO and Chairman of Telecom Italia Group who is also the Chairman of the GSMA.

  For Android Phones, there is more relief. The much used Google Wallet, which already has Mastercard Payment Gatewa terminal access will be the first to be integrated with NFC as Apple and other competitors to look to make themselves available for better Market Capturing.

  Certain Payment Service like VeriFone who worked in making Google's Wallet, have been buying up competitors in this space, as they recently purchased Swedish electronic paymnets company Point for US$700 Million recentl and Hypercom in August for US$400 million as they gear up to be the top contenders in making sure NFC touches everyone.