Will that be cash, check, or cell?

Frustrated that your wallet is overflowing with credit cards, debit cards, reward cards, gift cards and any number of other plastic?  You are not alone. 

Starting next year you might just be able to pitch your plastic. 

How?  By using your cell phone.

Years ago when I started programming different “credit card” like functions for a point-of-sale system we used at the ski resort where I worked (printing a lift ticket, debiting an account, or applying a discount), I knew there had to be an easier way to carry around multiple numbers without plastic.  I’ve long since dreamed of a “pocket knife” of credit cards---hold it one way and it’s a Visa; turn it and it becomes your supermarket reward card; turn it again and well, you get the idea.

Looks like I wasn’t the only one that had these thoughts.  Banks, credit card companies, and cell phone providers have been working diligently over the past decade to make the “George Costanza”* wallet a thing of the past.

Just think you could use your cell phone to…
…get through the checkout line in the grocery store
…purchase tickets
…pay bills

Sound like something out of the Jetson’s TV show?  It might.  However, it’s not too far off from being introduced in the U.S.  Nokia has been testing cell phone models for the past few years in Korea, Japan, Germany, the UK, and a variety of other countries.  Sprint, Verizon, and Cingular also have inked deals to convert the plain old cell phone to a virtual wallet.  Today’s cell phones already can surf the web, send email, take pictures, and even provide entertainment with games.  Tomorrow’s cell phones will let you listen to your favorite tunes in place of your iPod and become a direct payment device or the equivalent of a talking credit card.

If you think I’m exaggerating, just follow around a 20-something year old Korean girl.  In just one day you might see her use her cell phone to board a train, register for class, pay some bills, and even buy a lottery ticket.

One of the biggest hurdles for U.S. companies to deal with is the credit card concept itself.  Most people believe a credit card should be a plastic rectangle.  In reality, the plastic card is completely useless and not very secure.  It’s actually the small data strip on the back of the card that houses the information that vendors need to accept payment.  That data can actually be stored anywhere, including a cell phone.

How does it work?

Today, to use a credit card you must hand it over to a clerk.  The clerk processes it.  Sometimes in front of you, many times not.  You sign a receipt and give a copy back to the clerk.  In each step of this process there is the opportunity for someone to take your information and abuse it.

Using the new “point and pay” technology you would:
1. Type a pass code on the vendor keyboard.  
2. Choose which credit or debit card you would like to use, then point your cell phone at the terminal.  
3. Finally, you finish by pressing a key to accept the sale.  
4. A receipt is printed for the vendor and automatically saved for you on your cell phone.  Note, a copy of your cell number is on the receipt not your credit card number.

Benefits

A “mobile wallet” in your cell phone has many advantages.  Especially, since a cell phone is already something that millions of people don’t leave home without.  

1. Convenience.  Besides the convenience of not having to reach for a wallet or deal with change, you also eliminate having to carry multiple devices.  I.e. PDA, camera, iPod, digital key chains, etc.  Ever fumble for change in front of a vending machine or toll booth?  Your cell phone could make that a distant memory.

2. Security.  Fraud from credit card theft is less of an issue since there are no cards or paper receipts to worry about.  Your info is kept secure and encrypted.  You control how and when they are used.  Even better, if you lose your cell phone, one call can have it disabled in seconds.

3. Service.  Speed up the purchase process by not having to wait in line.  With the potential for digital tickets and coupons, a consumer can purchase a ticket over their cell phone, download the receipt, and beam it when ready to use.  All while walking from the car to the ticket office.

How does this affect me?

For individuals looking to simplify their lives when it comes to multiple technology devices, this will be the Holy Grail.  Not only will you be able to use the express checkout lines for just about anything (even airport security) but also be able to gain more control over your spending and personal information.

For businesses, this kind of new technology will have a large impact.  Including better fraud prevention, improved customer service, and less expensive marketing opportunities.  Not to mention growth from impulse buys and add-on sales.

For everyone it means accepting the cell phone as a part of life.  It means being productive anywhere.  It should also mean personal limits.  I mean really, who's that important to have to take a cell phone into the bathroom anyway?  Heaven forbid you hit the wrong key.  Your picture could be selling on eBay before you finish washing your hands!


For more information on how new technology and marketing methods can benefit your organization, contact Samantha Rufo, President of nxtConcepts at 888-215-0820 or visit http://myMarketingGuide.com .  To see an online demonstration of a virtual wallet in action, click here http://www.mzoop.com/en/flash/cyber/cyber_use.html

Samantha Rufo is president of nxtConcepts, Ltd. (www.nxtConcepts.com or www.myMarketingGuide.com). The company provides both Guided and Do-It-Yourself Intelligent Marketing to small business owners and entrepreneurs. Including strategic planning, marketing management, technology training and a webmaster-on-call service. She can be reached at 888-215-0820.

*George Costanza, a fictional character in the popular TV series Seinfeld, developed back problems because of his oversized wallet. The wallet finally exploded out in the street.

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