I had never heard of this method of payment (and neither had my spell check) until I read the following article. It discusses this wonderful technology that allows you to simply wave your phone in front of a pay terminal utilizing radio frequencies to pay for your purchase.
Three of the big boys (Visa, MasterCard and American Express) already have this form of payment available and it is predicted that 150 million mobile devices will be contactless enabled within the next few years. A MasterCard study revealed that people were inclined to increase spending an additional 30% using this method of payment. The article points out that this can be dangerous to a household budget. At a time when people have been cutting back spending, the credit card companies are coming up with more inventive ways to increase consumer spending. This appears to be the future cash cow for them. I will admit that the technology sounds pretty cool. But you know what’s not cool? A 30% increase in your credit card debt as a consequence! And while you might look cool in line waving your smart phone around to pay, you won’t be impressing anyone when you are home alone, staring at your credit card statement trying to figure out how you’re going to pay back the debt.
Kevin Fallon McCarthy
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