Filed under: Competitive Strategy, AT and T (T), MasterCard Inc'A' (MA), Barclays plc ADS (BCS), Visa Inc. (V)
I found a rather interesting article on Bloomberg, one discussing the potential of smartphones to replace credit cards. Supposedly, both AT&T (T), Verizon (VZ), and perhaps T-Mobile, may work with Discover Financial Services (DFS) and Barclays (BCS) in Atlanta and three other cities to test a system allowing consumers to pay with the "wave of a smartphone." This move would be the largest effort to attempt mobile payments in America and could serve to cut into credit card use.
Crone Consulting, a credit card consultant, noted that such a move could be a "game-changer" as far as credit cards are concerned. Think of how much such a move could cut into the market share for credit cards. According to the article, Visa (V) and MasterCard (MA) handled 82% of U.S. consumer spending a year ago (that is $2.45 trillion). Now imagine that smartphone users have the ability to simply pass their phone over a reader in order to pay for their purchases.
Continue reading Discover Takes On Rivals with Pay-by-Smartphone System
Discover Takes On Rivals with Pay-by-Smartphone System originally appeared on BloggingStocks on Mon, 02 Aug 2010 12:20:00 EST. Please see our terms for use of feeds.
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Verizon - MasterCard - AT&T - Visa - Credit card