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Credit Card Industry Change May Not Come Soon

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Credit Card Industry Change May Not Come SoonA number of different industries—cellphone manufacturers, credit card lenders, banks and service providers—will have to come to a consensus on how so-called mobile wallets, which will allow consumers to load debit or credit card information onto their smartphones, are going to work, according to a report from the New York Times. Millions of handsets across the country already have the technology to do so, but the programs that enable it have not been put in place on a large scale.

“It all comes down to who gets paid and who makes money,” Drew Sievers, chief executive of mFoundry, which makes mobile payment software for merchants and banks, told the newspaper. “You have banks competing with carriers competing with Apple and Google, and it’s pretty much a goat rodeo until someone sorts it out.”

Further, even if systems are introduced, there is not yet a standard security protocol in place to ensure these transactions are tamper-proof, the report said.

It was originally thought the iPhone 5, to be released later this year, would feature the mobile wallet technology, but rumors now suggest that this will not be the case.

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