AT&T and Verizon Wireless are teaming up to turn your cell phone into a credit card. AT&T and Verizon are forming an alliance with Discover Financial Services and Barclays to make a new product that could replace credit and debit cards with phones. AT&T and Verizon Wireless refused to talk about the rumors of the new alliance.
Similar systems already exist in Japan, Turkey, and the U.K. Visa and MasterCard also see big opportunity in mobile payments; these companies have been investing in their own solutions for years. Visa has made an iPhone app with DeviceFidelity that lets people store payment information for multiple credit card accounts.
MasterCard is still promoting PayPass and has put PayPass stickers on the backs of cell phones, letting people to make "contact less" payments.Mobile payments isn't very popular in the U.S. Consumers have been nervous about security issues, which may be hampering adoption.Today, consumers use their phones to read and send e-mails and surf the web. They also use tons of apps to do everything from streaming music to managing travel arrangements, so making payments could be next.