Replacing Credit Card with mobile payment

I found an interesting article on yahoo about mobile payments replacing cash and credit card payments. The article talks about why mobile payments should replace cash and credit card. Cash and checks are the most secure forms of payment. Most people prefer to use them.  But, there are some problems with them.  For example, check transaction process is slow. It will take two to three days to clear check. Carrying large amounts of money in your pocket is not convenient.   But, it is still considered us the most secure forms of payment.  Currently, technology is changing our day to day lives. Many people in the world are using mobile phones than credit cards. 

Are mobile payments replace credit and cash payment? At this moment, I don’t think so.  May be in a few years, we might see many people using digital payment than traditional payment.  In my opinion, as long as information is encrypted and data is secured, digital payment is the most efficient way of processing transaction.  Not only consumers and businesses benefited from mobile payments but government can save millions of dollars on printing paper money. I don’t know how many of you know how much it costs to produce currency and coin. According to the Federal Reserve Board, one dollar bill costs 5.6 cents to produce. 

Currently, big companies like Google are experimenting with this idea. For example Google wallet enables any credit or debit card registered with Google Wallet service to be used for payment at merchants that have payment terminals equipped with near field communications (NFC) or contactless card readers. Some convenience stores like Cumberland Farms are currently using mobile payment technology. Cumberland Farm allows customer to pay for gas at the pump using their smart phone. Every time they use, they get 10 cent discount on every gallon of gas they pay.

Here is how it works

Go to the pump and lunch the app from your smart phone. Tab the button labeled “Pay for gas.” Then a login screen appears and asks you to enter your pin. Next, you are asked to enter the pump number. The good thing about these apps is that every time you use the smart phone, it requires you to enter your login credentials. Once you done filling your tank, the app tell you how much money you saved. It also tells you your cumulative saving over time.

Source Yahoo

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