Smartphones to replace credit cards in U.S. this year
Imagine a world without credit cards. Instead of pulling out those pesty plastic cards, consumers make purchases simply by waving their smartphone near a receiver.
For example, say you want a Coca-Cola from a high-tech vending machine. You simply order what you want, take out your cell phone, and wave it to summon forth your refreshment. It’s almost as simple as waving a magic wand.
This is no futuristic scenario. In fact, it is reality in Japan and South Korea, two of the most technically advanced countries in the world. The United States is behind, but not for long.
This new technology called Near Field Communication (NFC) is coming this year. It will make electronic payments effortless and those plastic cards relics of the past. An expert familiar with NFC’s debut in the States says that smartphones that support NFC are just now hitting the market. Likewise, thousands of merchants are installing receivers to accept this new payment form.
So, what’s been the hold up? In short, companies are working to establish a uniform platform and determine what merchant fees will be. Despite these challenges, tremendous progress is being made. The tipping point is near.
While there are certainly some advantages to NFC—efficiency seems to be the most touted—what do you think are the drawbacks?
Read more at Inc. Technology.