Will Mobile Wallets Replace Their Traditional Counterparts? 194
Cara_Latham writes "Mobile wallets are all the rage. But legitimate questions remain as to whether they will ever truly replace their leathery counterparts. Mobile wallets, which use NFC-based technology to allow customers to make contactless payments at the point of sale, already have begun to make their presence felt. Mountain View, Calif.-based Google launched a digital wallet this past fall. The search giant has agreements with Visa, MasterCard, American Express and Discover to make the Google Wallet available to the card companies' account holders, and there even are some NFC-enabled terminals in use across the U.S. that can accept it, including at many mass transit stations. And mobile wallet ventures are cropping up around the globe, as well. Telecom companies including Vodafone and Telefonica announced this year wallet initiatives in Africa and Latin America. But mobile wallets still face many hurdles before they can gain widespread adoption, experts say, including the rather difficult task of getting consumers to change long-held habits."
But NFC doesn't hold cash? (Score:5, Interesting)
Mark of the Beast? (Score:1, Interesting)
And the Beast causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
What an interesting way to give someone a "mark" in their right hand, though most people don't hold their phone to their foreheads. And what a coincidental bunch of stories about Sweden looking into giving up cash.
Re:I don't get it. (Score:5, Interesting)
Actually it does. Here's how:
- Conversion from cash to bank account balances often carries a small 'change processing fee' with commercial banks. It's not big; but if you are depositing lots of tiny small change, many banks will charge you for the service. (esp. the other way around - getting cash out as coins, for giving change, etc.)
- Loss/theft - it's a lot easier for cash to go missing than it is for electronic payments. (plus costs for security for cash stored on premises)
- Going to the bank and depositing it regularly is going to cost anyway (salary for time spent, fuel, etc.)
I'd say the above equally match or exceed the 1-2.5% most merchant banks will charge for CC processing services. NFC pricing is generally the same amount. The fees charged by merchant banks for CC facilities are actually completely reasonable - there's some other aspects which hurt a bit more (90 clearance windows, chargebacks/fraud, etc); but the fees are perfectly fine.
Re:I don't get it. (Score:4, Interesting)
AMEX are different, AMEX are acquirer and issuer for all their merchants and all their cards.
VISA are not in the issuing or acquiring business in the markets I know (North America, Australasia, Europe), so I find your description of what's going on highly unusual. They never get into the consumer facing end of things, they provide standards, an international network and various other facilities and charge for their use. The cards, the statements, the charges, the interest, everything to do with the associated accounts, these all belong to the bank, not VISA.
Your situation is highly unusual, if you're relaying it accurately, which I doubt.