Mobile Phone Payments to Replace Credit Cards
A new project has been launched to make paying by mobile phones the future.
According to the Payments Council, the wallet could be a thing of the past if their project succeeds in making mobile phone payments as easy, efficient and secure as any other way payment method.
Over 45 million people use a mobile phone already, Ofcom Communications Tracking Study 2010 shows.
The project by the Payments Council aims to help participating banks and building societies deliver mobile payments in the UK. It is hoped within a couple of years customers will be able to send money either by text, through an app, or using their phone’s internet browser.
“Mobile phones are no longer only used as a way to contact people – their functionality has increased dramatically over recent years and the mobile phone is now something which many of us cannot do without,” said Gary Hocking, Payments Council acting chief executive.
“The introduction of mobile payments will offer more choice to customers, simplifying how we can make a financial transaction and increasing flexibility in our everyday lives.”
Initial research suggests that almost a quarter of consumers are likely to want to use a new mobile payments service.
The project focuses on transferring money as opposed to recent launches which allow phones to mimic contactless card payment.
Over half of mobile phone users use their phone to take photographs, while 37 percent to browse the internet, showing mobile phones are relied on for much more than just for making phone calls. A further 34 percent use their phone as an address book while 25 percent use it to listen to music on.
When mobile phones can be relied upon to make payments it is expected they will be the top item people cannot leave home without. Currently a wallet or purse is top with 49 percent, while mobile phones are second with 27 percent.