Virtual Wallets May Make Credit Cards Obsolete
Already in Japan and South Korea, people use their cell phones to make credit card purchases. They no longer need to carry credit cards with them. Will the US be next?
Eight of ten biggest banks in the US are already offering some basic financial services on cellphones. Right now, account holders are able to check their account balances by tapping away on their tiny phone keypads. Millions of American’s are making use of “mobile banking”, and taking advantage of the ability to approve bill payments, transfer money between different accounts, receive instant alerts when an account balance drops below a specified minimum, or alerts when there is unusual activity seen on one of your accounts.
While the technology is still virtually unknown to the majority of American’s, people in the financial industry believe it’s only a matter of time (between three and five years) before our cellphones become virtual wallets. Until you can use your phone to make actual purchases, you can check your account balances with your phones before making a purchase to see if you’ve got the money to cover your purchase.
