Paying with your phone seems like something out of a Sci-Fi movie only a decade ago. Today over 55 million transactions have taken place at Starbucks alone. Paying with your phone makes many new conveniences available. Paying with your phone allows you to combine your loyalty card with your payment type. For instance you can go into Startback with the Starbucks app and pay for your drink, while getting points toward your loyalty as a customer. You then can redeem points with your phone just as easily as paying with your phone.
A lot of this uses the Near-Field Communication chips found in newer cell phones. This chip allows you to transmit your payment information when you want, unlike the RFID credit card that have a constant signal transmitting. Google Wallet for instance allows you to pay with most of the “paypass” systems.
Since this is such a new technology Verizon Wireless is still blocking the use of NFC payments over it’s network. The block is expected to be lifted. Microsoft is releasing its new phone with NFC technology. Apple is still up in the air as if it releases the NFC technology in it’s devices. They may opt for a proprietary payment system called Passbook which will be released in iOS6.