Paying by Cell Phone

Source: The NY Times

The credit card company Visa is starting to expand an innovation that has already been introduced in Malaysia. The new concept is using a sticker applied to the back of your cell phone to make payments. The sticker is actually an extremely thin chip, which when placed on the cell phone, will use radio frequency identification to communicate with a payment terminal. The entire process works by following three relatively simple steps. First, the purchase of the compatible chip-inserted cell phone is needed. Second, the chip will be connected to the appropriate bank account. Third, when all of the above is established, the phone is waved over the payment terminal just as one would swipe a credit card. Visa claims that the new innovation will increase purchasing convenience and security. The cell phone may be locked with a password that would prevent a thief from utilizing the chip and as for convenience, future technology will eventually allow users to hold multiple accounts on one chip.
Another feature I see as useful is the removed need to carry around multiple cards. I know that I would be much more likely to lose a credit card than my cell phone, so having them both in one place would be highly beneficial. However, having both in the same place also places a burden on oneself to be constantly available. Leaving your cell phone behind for piece of mind may become non-existent as I'm sure the cellular device would need to be turned on for purchases to be made. Either way, I am interested in seeing how this technology develops and if it becomes prevalent in other countries.