May 2, 2007

NEWS: Aussies to Get Mobile Credit

Fans of contactless technology living Down Under have news to get excited about. This week, it was announced that cellular phone manufacturers Nokia, Samsung, and LG Electronics had inked a deal with MasterCard to make their mobiles into “phone wallets.” These super-high-tech phones will feature embedded microchip technology to allow them to be swiped at contactless payment terminals, in lieu of a traditional credit card. The phones are expected to hit Australia in two years.

MasterCard expressed confidence that the “phone wallets” represent the future of the industry, theorizing that, in ten years, people will no longer carry plastic cards. Of course, that’s taking much on confidence, but it could become very true, if enough people get hyped about the technology. Clearly, the companies involved in the deal see Australia as prime ground to test this new technology on.

Of course, nay current cell phone users will require upgrades to their current equipment, to be able to utilize the technology. Plus, retailers will need to add new scanners to their terminals, so it’s not a cheap proposition. But the technology has much to recommend it. Convenience is an obvious factor, but increased security promises to be a draw, as well.


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