Cell Phone Credit Cards?

In India, mobile phone users are paying for purchases through their phones.  The phone number acts as the card number, with a lot of behind the scenes processing taking place to look up the real credit card information based on the user’s telephone number and initiate the payment to the retailer.  The retailer itself never actually has access to the credit card number.

Cell phone credit cards are actually available in the US, as well, although are extremely limited.  Trials are beginning with contactless payments, using cell phones, at many McDonald franchises, CVS pharmacies, and with American Express ExpressPay. 

Contactless payments may make you nervous, but you may already be using it in some form without even thinking about it.  Have you ever driven through a toll booth and watched the indicator light change from red to green without handing over cash?  You’ve just paid for your toll.  Ever pulled up to the gas pump and flashed your keychain at the light on the pump to fuel up?  You just paid for your gas. 

Most people don’t leave home without their cell phones.  Credit card companies and retailers picture higher spending when buying is as easy as showing your cell phone at the checkout line, rather than finding the credit card in your wallet and lining up the magnetic strip in the reader to initiate payment.