Cell phone credit comes closer to consumers’ pockets
In 2010, advances in smartphone technology and near field communication led many industry experts to predict the items could soon replace credit and debit cards as the most-used payment type among consumers.
This week, Wells Fargo announced it intends to test a trial version of the new technology, after a previous failed attempt three years ago.
Peter Ho, the company’s product manager that spearheaded the campaign a few years ago, says the original version was not offered to customers as it was limited by the technology of the time, Businessweek reports. However, now 200 employees will have a microSD card placed in their phones that will allow them to make purchases at retailers and restaurants via their existing cellular devices and special payment app.
Ho says the company is looking forward to seeing its investment pay off this time around, and hopes the technology will soon filter down to consumers, the news source says.
Despite the advances, many consumer advocates worry this could lead to a greater number of unplanned purchases by cardholders and lead to more credit card debt. In addition, recent research shows individuals tend to spend more money when using the cards as opposed to cash, an occurrence that is likely to continue with smartphone payments.