Generallisimo wrote:Not sure what you mean by cloning of the phone, any transaction system should be encrypted with at a minimum of 256-bit encryption before it can be considered secure. If a pay-by-phone system was done properly, the software token 'credit card' should only become unencrypted after entering a PIN, so even if you can copy the user's phone, you'll still need to get their PIN. Not necessarily the most secure system, but a hella lot safer than those 'pay-by-touch' cards which can be cloned and are not protected with a PIN.
Yeah, I'm sure the technical challenges can be overcome. But the fact remains that you can go out with your credit card and charge thousands of dollars at any time. Sure you need the credit. But what's behind that is a bank guaranteeing your charge and being responsible for it. They manage the risk because that's what they do. But the bank has to fork over cash to the merchant for what you bought within a couple of days. They do that by using depositors money or borrowed money
But mobile operators are not banks. Even if they legally started being banks, they don't have that expertise. It's one thing to guarantee that $1 you spent on a soda or the $9.99 you paid to some service because those can be held in account until you pay your bill. They don't need loads of cash and a huge credit facility for that.
The beauty of Visa, Mastercard, etc. is the infrastructure behind it including banks and even investors to securitize the debts. That took decades to develop. I agree that mobile payments is headed in that direction but it is a long way off. What is more likely is an app by Visa, Mastercard, or AMEX that lets you pay through an RFID embedded in your phone or using a near-field transmitter. But, while those technologies are available, phones don't have the hardware in them yet.