Cell phones as credit cards

In a nation already burdened by billions in debt, spending money we don’t have is getting even easier. Handset makers are scrambling to release phones that can be used as credit cards. Near field communication (NFC) is the technology that allows data exchange between two enabled devices that are close to one another. A mobile-payment-enabled phone can be linked to a bank or credit-card company, but wireless carriers are eyeing this opportunity as well. In many developing countries, mobile carriers already act as banks for people who do not have bank accounts, letting them use their phones to deduct money from prepaid accounts.
While banks and wireless carriers negotiate over what promises to be a huge market, one nimble retailer is bypassing both of them. Starbucks has a  custom apps that lets smartphone users scan their phones at the counter to deduct money from prepaid account. This of course eliminates the temptation to overspend, because when the Starbucks account runs out of money the user’s phone can no longer be used to make purchases.
But users of NFC-enabled phones will ultimately have a much greater choice of where they can use their smart phones to shop. So far, only a handful of phones on the market include NFC technology. They are the Google Nexus S 4G, the Samsung Galaxy S II, the BlackBerry Bold 9900 and 9300, and the Nokia C7. RCR Wireless News recently reviewed the Google Nexus S 4G.