Navigator. News source. Meal planner. Camera. Meteorologist. Smartphones can be customized to do almost anything except vacuum the floor and pay for purchases. While smartphones may never replace your vacuum cleaner, they may one day take the place of your credit card.
The United States is one of the few remaining developed countries that still uses magnetic strip credit cards. Many countries haves witched to contactless payment systems with advanced technology. In the U.S., banks and retailers have not rushed into contactless payment systems because the changes are expensive. Each reader costs approximately $200 and the expense adds up quickly for retailers.
While banks are taking their time to advance beyond the magnetic strip, other companies are eager to compete with Visa
Once the technology is available, consumers will likely pay more to add a wireless chip or upgrade their smartphones with secure payment capabilities. According to the Federal Reserve Bank of Boston, updating mobile phones with embedded microchips would increase manufacturing costs by $10 to $15 a handset.