Payment by smartphones could replace credit cards very soon. In fact, Bank of New Zealand believes this could happen in a year. Good news for those, like myself, who are running out of wallet space for all their cards!
A trial was recently run last November using NFC capable Samsung smartphones to test mobile "tap and go" payments. Forty-four participants from BNZ, Vodafone, and Paymark underwent the trail.
The participants would hold their NFC mobile phone near an eftpos terminal to make the payment, much like a Snapper card or a credit cards' contactless payment feature.
The advantage of mobile payment over cards is the ability to disable the device if it's stolen and prevent fraud. Also, receipts need not be physically printed. Instead, they can be electronically sent to the phone.
Overall, there was positive feedback on using mobile for contactless payments.
Telecom, Paymark, Vodafone, and 2degrees are planning on working together to promote this technology and get it working across phones and retailers in New Zealand.
To learn more about the innovations in payments, check out the cards and payments event happening in Australia in 2013.