Bloomberg: AT&T, T-Mobile, Verizon to cooperate on mobile payment venture

By on Aug 2, 2010 at 2:44 PM
mobile August 2, 2010

Bloomberg is reporting that AT&T, T-Mobile USA, and Verizon Wireless are in talks to bring cellphone based payments to the States. Bloomberg cited, “three people with direct knowledge of the plan,” when they wrote that the three wireless vendors “may work with Discover Financial Services and Barclays Plc to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone.” Currently, Visa and MasterCard handle 82% of consumer credit card spending; a $2.45 trillion business. The reported system would see payments processed by Discover’s network (currently the fourth largest credit card network in the U.S.) and Barclays would be the bank managing the accounts. The contactless cellphone payment system is already in use in Japan and the United Kingdom. What do you think? Do you see value in a service like this, or is it more inclined to just creep you out?

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  • http://Gadgetsteria.com Mike

    I’d use it. The technology is old anyway. It’s been overseas for years upon years. ‘Bout time we got some convenience stateside…

    • Chut Pata

      Yes I saw it in Japan some six years ago. Last year I saw it in Korea as well (Don’t know since when they were using it though).

      It would be sweet to see it in Canada, Northern USA, and states with extreme weather. People would be able to stay in car on the gas station while the attendant fill in, and then pay via their cell phone.

      Also nice would be to use cell phones as TV/DVR remote control and remote car starter. It would be another ten year for USA probably :(

      • Nokia Guy

        Sorry to say but phone can be used as a remote control. I used to have in about 5 years ago on my Nokia 6600 and later on to my Nokia N95. Its called IRremote i think.

      • Lingo Police

        Sorry to say the present hardware does not support it. Samsung Galaxy S has it, but we have a scaled down version of it in the USA.

      • Baester

        I used this for years when I was working in Tokyo. It was especially convenient using it with Suica/transit.

        It’s been testing in Canada for over a year now. Motorola and Visa with carriers… good to see the US finally getting their act together.

  • Terry

    What happens if you loose you cell phone?

    • Lingo Police

      When you “loose” your cell phone, it runs away and you have to rope it back. When you lose your cell phone, it is like losing your wallet.

    • dante

      @Terry

      People said the same thing when online banking on ur cell phone was being proposed.

    • http://www.smallfish-bigpond.com Kerensky97

      Depends how they set this up.

      If they take the Japanese model you download money into the phone, then use RFID to make the purchase, so the phone is very much like a wallet. The alternative is to just use the phone to verify the transaction so money isn’t actually moved to the phone.

      Either way if you put a PIN or password on you phone nobody else would be able to get in and use it. It’d be like losing a wallet… that had a lock and key keeping it closed.

  • JB

    Guess it would be nice if your forgot your wallet, but seriously swiping your card take less time then pulling your phone out, starting the app swiping it and hoping there isnt some guy with a sniffer of some sort that can read the info for his evil deeds..

    Ill stick with my Card or Cash for now

    • http://www.smallfish-bigpond.com Kerensky97

      It’s easier to encrypt a digital connection than it is protect a physical card. All it takes to “sniff” a card is to copy the numbers off of it using a pen and paper.

      Have you ever gone to a restaurant, paid by card, and the waitress took it away to process it?

      She could have no idea about technology, and even be illiterate and still copy the numbers off the card assuming she has basic eye hand coordination. At least with a digital data connection I can put AES encryption on it.

  • DInc

    Discover sucks. I don’t know anyone who uses that card.

    • Lingo Police

      I got one because they kept pestering me with offers until I got sick and applied for one. Do I use it? Nah

    • JF

      Giants suck

    • Rosario

      Same here, and at my job we dont even take Discover. What doesnt make sense is that it says Visa and MasterCard handle 82% of consumer credit card spending. Why go even go with Discover if the majority doesnt use it? Makes no sense.

      • Chut Pata

        It is because Discover and American Express are good at striking deals with certain big businesses. For example Fry’s accepted Discover only for a long time. Costco still accepts American Express only.

  • TC

    I like it, and its about time. If done right, it could be way more secure than carrying cards. When you lose your phone you usually know it right away. And if your phone is lost or stollen, thats what password protection, remote wipe, are for GPS tracking are for. Cant wait till they start incorporating biometrics into phones. That’ll really annoy thieves.

  • Will

    So instead of stores paying credit card companies a 3% to 20% convenience charge for allowing customers to use their cards will wireless companies be the new middleman?

  • Lingo Police

    What are the hardware requirements. If it an iPhour, how do you hold it?

    • DInc

      If you use the iCondom around your iPhone and purchase something with it, wouldn’t it be considered prostitution?

      • Ender

        Hmmmm. Maybe prostitutes could use this method to collect money from “clients”. lol Now do you want this tech? hehe

  • OneTwo

    If they were so close as to whats goin on then they would know its Verizon now not Verizon wireless..lol

  • Sherman

    I’d rather see it come out first at places like supermarkets or pharmacies.

  • X Glansburg

    The problem here isn’t the phones, but rather the fact most stores wont have the technology to utilize it.

  • http://www.illustratorhints.com Jesse Hamilton

    Unless this adds security, I see no point. Why do I need to take out my phone, start up the app, (and log in?) and then swipe my phone when I can just swipe my card and enter my pin? Is there something wrong with the current system that is fixed by this? I’m not seeing it.

    • wallie

      its not that big of a process. the phones over seas have the app running in the background of the phone all the time anyway.

      just touch the phone to a reader (like the bump app for example) the reader will recognize it and a confirmation screen will come up on your phone to confirm and thats it.

      basically the same process of taking out your wallet from your pocket or purse and then the card and then swiping. even more easy for some because like me most people are already holding there phone in there hand.

      plus with having your card information on google checkout on android phones and also the apple app store most people already have there credit card information on theyre phone

      doesnt have to be a good idea for all but its definitely not a bad idea for anyone.

  • http://evologynow.wordpress.com Evology Now

    I think this is something we’re going to see here eventually anyway. I just hope that with it they develop some really serious security.

  • Cingulair

    @Chut Pata,

    there are already apps and alarms to match out for the car starter for iPhone and probably Android by now. as far as the Tv/DVR remote their an $80 IR connection for the iPhone now. I’m sure Android will soon follow. I’d prefer just using a remote. I prefer conventional methods for starting my car as well.

    Posted from BGR Mobile (iPhone).

  • thetruth

    never thought I’d hear AT&T, Verizon and T-Mobile cooperate in the same sentence.

  • xclntgig

    Hacker heaven!!

  • http://www.youtube.com/jeromeo1980 Jeromeo

    Does no one on here know about Near Field Communication? There are so many fear comments, but wake up, guys, this transition is inevitable. I already use my phone’s screen to scan coupons, board a plane, and get vip access at nightclubs. I remember years ago when people would say things like: navigation systems in cars are just silly toys for the rich, cell phones will never replace my point and shoot camera, I don’t need a music player on my phone-I already have an iPod, I can check my e-mail from my home computer why use my phone, etc. Fearing these things slows progress.
    I was tired of asking for directions in 1998 so I got a Lexus with navigation, was tired of carrying a camera around in 2006 so I got a Nokia N93 (first phone to record DVD quality video), was tired of standing in line to get into clubs in 2001 so I signed up for SoBeSpots (show your phone to the bouncer and get access to many bars on SouthBeach), was tired of those stupid magnetic strips wearing out on my credit cards in 2007 so I got Chase Bank with Blink (just hold your card close to the register and you don’t need to sign or use your pin #), was tired of cutting out coupons in 2007 so I started scanning barcodes for stores/airport, was tired of only being able to access the full internet with Adobe Flash on my desktop in 2008 so I got a Nokia N900 (the first phone to have full Flash support), my cell phone has already replaced my TV remote control, wireless webcam, & music player, and I can go on & on…
    I’ve been tired of having pieces of plastic & paper currency in my wallet since 2003 when NFC came out. I want progress!
    And don’t bring up futile arguments about how unsafe it ‘could’ be-people already sift through the garbage for SSN’s, look over your shoulder to see your pin #, place devices on ATM’s to scan your card, write code to steal your info online, etc. Everyone thought credit cards would bring certain doom, but they’re replacing cash. People are terrified of putting a cut up credit card in the garbage, let alone a recycling bin-millions more pieces of plastic that will rot for 10’s of thousands of years.

    Read about NFC:
    http://en.wikipedia.org/wiki/Near_Field_Communication

  • FICO

    Since this will be backed by Discover does that mean that to use this service you’d have to have a certain caliber of credit?

    In other words people with bad credit will be barred from using this service unless they direct debit money from their own checking/savings account?

  • FarmerBob

    Is this like the Chase cards where someone can walk past you and get all the info they need to rob you blind?

  • JJFNIGHTS80

    What if someone steals your phone or you drop your phone? what then your gonna let the thief use your credit card that’s already on your phone turn on and use it till your broke? I don’t think I’ll have that app on my phone.

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