Reuters - A seminar in Helsinki has been discussing the chicken and egg paradox of using cell phones as a 'digital wallet' . Whether you like the idea or not , its definitely coming - where you will be able to use your phone to make small payments simply by swiping it against a reader , which then automatically debits your bank account ...
This is what the term 'digital wallet ' really means - that you can use your phone to make small payments that cut out the need for cash , and supposedly make life easier for you , the retailer and most importantly the banks !
The technology that allows this to happen is already available and Nokia has already installed it on some of its phones , and presumably will roll it out over more soon.
What was interesting was an observation by a guy from a Nordic telecom operator , TeliaSonera . called Jukka Suikkanen who said that the tipping point for this form of technology in phones was about twenty percent , before it effectively started to feed itself , back to chicken and egg !
Another analyst for Nokia made the point that it took about thirty percent of cell phones to be enabled to send text messaging (sms ) before it really took off
There are pro's and con's in terms of ease and convenience and security that are pretty obvious - my main concern is that there comes a time when it becomes the only way to pay for things .You lose choice.
Its already happened in certain areas of London , UK , where parking meters that you used to use cash for , you now have to use a cell phone to pay for your time - that isn't about customer choice or freedom , its about what is easiest for the regulating authority .
That's the real danger for the future use of this and all technology - under the guise of various buzzwords , peoples freedom to choose how they use any form of technology , and the information it hold about them , is taken away from them.
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