Discussion: New mobile payment devices, from companies such as Google, Square, and Intuit, may replace the need for credit cards. The new digital payment systems transform mobile devices into credit-transaction devices, which basically allows customers to scan their phones as a method of payment. Besides convenience, the long-term benefits of mobile payments include real-time feedback of endless amounts of information (with the use of Near Field Communications) about the success of sales, coupons, product placement, etc. Tapping in to GPS and tracking where and what you purchase (not to mention what purchases your friends make) is also a major benefit of mobile payment devices to both consumers and vendors. Increasing the ease of the banking process is another long-term benefit of mobile payments.
Source: CNN Money
Date: July 1, 2011
Question for discussion:
- What are some of the security issues associated with using mobile payments? Do mobile payments present a greater risk of identity theft?
- In order for mobile payments to become the most efficient way to process payments, all/most vendors must accept this form of payment. Is this a realistic goal?
- What is the future for giant credit card companies such as American Express, Visa, or Discover as mobile payment devices become more popular and revenue streams start to dry up?