Mobile Phones Become an Instant Merchant Account Solution

In the next few months, many people will have the opportunity to play around to try to answer the mysterious question of how mobile phones can do business from east to west coast. The question; will shoppers be able to get rid of their plastic credit card and use their mobile phones as a “swipeable” method of payment.

Without having to carry a plastic card around will allow for a more secure way to carry payments around and have an instant merchant account. To get this process started, major phone companies like AT&T and Verizon are launching trial programs to see how this idea will work. Professor Hill from Wharton stated, "[Smartphones] have to be more convenient than credit cards, possibly cheaper and secure." She continued, “Of course, merchants will have to accept the proposed type of payment," Hill points out. "In order to get merchant buy-in, the new system will have to be easy to use and cheaper with respect to transaction fees and equipment compared to ... credit cards."