Tuesday, January 25, 2011

The End of Credit Cards

CNN says that "the end of credit cards is coming" and it could be as soon as 2015. Mobile payments may soon take over. The ability to use your phone as a credit card is already available. But CNN is convinced that by the end of 2015, 22 billion dollars worth of mobile transactions will be made annually. One downside to mobile transactions in my opinion is what if you lose your cell phone? Of course people lose individual credit cards all the time. But most have multiple cards and options of payment. If everything goes mobile, losing your cell phone will turn out to be a lot more of hassle then just not being able to communicate for several days. The demand for products that save peoples time is always present, but mobile transactions might turn out to have more problems than originally planned. I believe the traditional plastic card will be the choice of payment for many years to come.

4 comments:

  1. I have to disagree with you on that one. I think people would love to be able to pay for everything with their mobile. The ability for easier and faster modes of payment, just like faster and better cell phones will always be in high demand.

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  2. I don't think paying with your mobile device is much faster than with a normal credit card, yes it may be a few seconds for the transaction to go through, but wouldn't that be the same thing with your phone? Also, if you lose your cell phone someone could steal it and use it, just like when someone steals your credit card number. When you call to cancel the credit card when that happens, would you have to disconnect your phone too and get a new number and everything? I think that would be a much bigger hassle, to get a new credit card and phone. Then simply just having a credit card in the first place.

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  3. Connor, pulling your cell phone out of your pocket takes the same amount of time as pulling your wallet out of your pocket. Also, you'll probably have to open an application on your phone to be able to make the mobile payment. Which in turns takes considerably longer. Plus, distributing machines that allow you to make mobile payments to businesses will be extremely expensive. The concept is great, but in my opinion unrealistic in the real world.

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  4. I think that there will some people will prefer to use there phone and many others that would rather just use a card. People who use there phone for everyday work and keep their life on their phone might rather use their phone than the card. But I still think that there will be many people who will still use a card. Pulling a card out of my wallet seems faster than going to an app on my phone.

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