Tapping a smartphone on a card reader to pay for a sandwich or a bus journey could soon become an everyday event, under a scheme unveiled on Thursday by Vodafone, O2 and EE. Paypal and Google, as well as banks and mobile operators, have been trying for years to create mass market mobile phone payments systems, so far without much success.
Target; Nieman-Marcus; Michaels. Lately, it seems that a week doesn’t go by without some major retailer being forced to inform customers that their payment systems have been compromised, potentially affecting millions of cardholders and their finances. Of course, that’s on top of the myriad scams that happen every day on a smaller scale and end up costing both consumers and businesses billions of dollars every year. As plastic has increasingly replaced cash over the years, the financial industry has worked hard to tighten its grip over payment networks in an effort to curtail fraud—obviously, with mixed results. But that’s due largely to the fact that the weakest links in the long chain of providers that make charging your credit card possible are outside of the industry’s control. In the end, the best solution to this problem may already reside in your pocket: Your phone could be the key to a truly secure way to spend your money.