Cell Phone Credit Card

Friday, April 28, 2006

Your cell phone could in future replace your credit card. No longer would you use your credit card but would use your cell phone to make purchases. This could see your cell phone replacing the need for your wallet.

Visa International and cell phone giant Nokia have teamed up and are currently working on a project which will make the cell phone credit card a reality. They see this as a natural progression. With more cell phones than there are plastic cards it makes sense to combine the two if possible.

The cell phone credit card will work by using radio frequencies eliminating the need to swipe. The same radio wave technology is already being used in Visa WAVE credit cards in some countries. The cell phone credit card technology is currently being tested in Malaysia with 200 Visa WAVE customers over a four month period.



Risto Sipila, Nokia's senior business development manager said that "This new technology won't replace your wallet entirely but it is very promising because it will make life easier for everyone."

According to the In-Stat consumer survey the biggest concern of the cell phone credit card is added fees for its use followed by security concerns about privacy and what would happen should the cell phone be lost.

Nokia assures that the cell phones will be very secure and be equipped with the latest security, cryptography, and smart card technologies. Should the Malaysian trial be a success the cell phone credit cards can be expected as soon as next year.