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Mobile devices could become the new wallet.
On Jan. 28, U.S. Bank NA, MasterCard Worldwide and Nokia Corp. announced that they would launch a pilot program in Spokane, Wash., allowing consumers to pay for their purchases with one tap of their mobile devices.
Through near field communication, or NFC, technology, phones used at MasterCard PayPass-enabled terminals at retailers such as Regal Entertainment Group's Regal Cinemas, McDonalds, Jack in the Box and 7-Eleven will now offer this service as a viable payment method in the city.
"What MasterCard is doing is making a contactless credit card, but the possibilities are much bigger than that," David Chamberlain, principal wireless analyst at research and consulting firm In-Stat, told SNL on Jan. 28.
Chamberlain, who released a Jan. 28 research a report on the subject, said that one day everything in a person's wallet could be included on a cell phone, including personal identification items like supermarket loyalty, fitness club membership and library cards.
And though this prospect raises safety concerns for some, in Chamberlain's opinion, the system is far more secure than carrying a wallet.
"If I drop my...