DIGITAL WALLET

            It is shocking to me that one day soon it will be possible to make purchases through our cellular phones. This article discusses how North American phone companies such as Verizon and AT&T are discussing with Research in Motion (RIM) to create digital wallets. At first they wanted to use the SIM card in AT&T smartphones to make payments, then they realized it is easy to switch a SIM card with another smartphone. Verizon didn’t have the possible to use a SIM card because they use another technology called CDMA. Nevertheless, they are considering switching over to the technology server that AT&T uses. RIM wants to place this card where it will be non-removable and then allow purchases as well as a tracking system.

            The article states how stores will have a specific device that you have to use to be able to pay. I wonder how much money this device will cost. It is stated that it will be possible to pay at places like Subway and even a Taxi cab. I wonder how you can do a tip for a taxi with the phone payment method.

             RIM refuses to discuss their mobile-payment strategy in details. I assume this is to prevent competitors from stealing their ideas. RIM is reaching out to banks to get first-mover advantage. They are specifically working with MasterCard and Bank of America to allow customers in New York to make purchases through their blackberry’s.

             Right now RIM does have competition with Google since they are looking to make partnerships with Verifone. Other global companies are also looking further into mobile payment methods. I can see this technology coming out in smartphones within the next two years. I fear that people may not trust paying with their cell phones at first. But I believe over time it will become successful.

-Rachel

http://online.wsj.com/article/SB10001424052748704360404576206412989185134.html?KEYWORDS=telecommunications