New Yorkers might soon be able to pay for their purchases with their smartphones rather than their credit cards. Bank of America and Visa are working together to launch a new test program that will bring digital wallet capabilities to smartphones.
The program will start in New York in September and run through the end of the year. Visa is planning on rolling out a similar test program with US Bancorp in October. Users in the test program will be given small chips to insert in their smartphones. These chips emit radio signals over very short distances and can communicate directly with point-of-sale systems in stores. By waving their smartphones near cash registers, users can automatically send payments and banking information.
This sort of technology has existed in Europe and Asia for the better part of a decade, but mobile-based purchases have yet to really take off in the U.S.As smartphone and mobile usage continues to climb, however, it looks like U.S. consumers might finally join the revolution. In addition to the Bank of America/Visa program, AT&T, T-Mobile, Verizon and Discover Financial Services are also working together on a joint mobile payment system.
Tags: bank of america visa, mobile payments, new yorkers, radio signals, smartphones, t mobile, vis program