Google Wallet, which uses the NFC chip on found some new smartphones, makes it possible to use your smartphone for payments, much like a credit or debit card.

My take? Short-term - NO, but Long-Term YES

Short-term, it won't catch on because it's limited to only a few phones and merchants who can accept it. The convenience of phone-payments is limited by the fact that you'd want to use one or more passwords so the app and phone only make payments when YOU want it to (not when a thief is wandering by). The security of not needing to carry credit cards is balanced out by the risk of loss or theft of the phone, plus the new risk that other apps (malware) might try to get to the "money" in your digital wallet.

Long-term? It think this WILL catch on. We've seen how debit cards have replaced credit cards and cash for a lot of people, even though they have risks of their own. (For instance, the some laws protect credit-card holders better than debit-card users.) People will love the chance to use their phones more and not carry a wallet. Merchants will like making in-store purchases easier, and banks will like not needing the expense of printing and distributing extra plastic cards.

Google Wallet requires a new phone with an NFC chip. This means most people won't get it until their 2-year cellphone contracts expire and they upgrade their phones. So it will be a slow roll-out over the next few years. But keep it in mind when shopping for a new phone. It may give new meaning to the words "This phone is going to pay for itself"!
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