Summary
The tech exists to completely transform your phone into a secure transactional device. I know because I'm consulting with a group that offers it in a package of services for wireless providers.
And while it's great to know that wireless carriers could in effect replace the debit card, it's up to the millions of merchants worldwide to adapt.
The good news is, they did for Visa, Mastercard, and Discover.
Analysis
Cingular, now AT&T, told us that their consumers aren't ready for a transactional service on their cell phones. And while it impresses to demonstrate using you cellphone at the ATM or to transfer money to your debit card in the grocery store, and even amazes to see a cell phone complete a transaction as easily as a visa card (through a bar code similar to store inventory), at the end of the day the market is nascent.
What my simple observations provide are this: It would cost a great deal of money to develop this market this early. It would require lots of advertising and branding dollars to execute. How do you teach a consumer to do money transfers on their phones? Is the burden on the bank, or the wireless provider? Does the wireless provider become a bank? There are many, many questions left unanswered in this space.
It would also require lots of participation from merchants. From gas stations to grocery stores, in order for the transformation of your cell phone to take place, merchants must be convinced it benefits them. Are the transactions cheaper than Visa? Does it increase their business? Is it safe and secure?
If you question the tech, check out www.RBAIntl.com and see for yourself. It's there, alive, and waiting to be used.
