are four major wireless carriers in the U.S. today: Sprint, T-Mobile,
Verizon, and AT&T. The four carriers battle fiercely to land
exclusive handsets and customers in the mobile market. Getting three
of those four major carriers to work together on one plan seems
unlikely.The only thing that could drive AT&T, Verizon,
and T-Mobile to work together is money – the three carriers are
reportedly working together on a new
system that could replace credit cards with payments using a
reports that the carriers are working on the idea for a system that
could rival MasterCard and Visa.Payments on the system
according to Bloomberg sources
close to the deal would be made through Discover and Barclays, two of
the four major credit card payment-processing firms. Credit cards are
a huge business with MasterCard alone handling $2.45 trillion of
credit card spending last year.The system will be trialed at
test stores in Atlanta, Georgia and stores in three other cities in
America. The system would allow the user to pay for purchases at the
register using a contactless system on their smartphones.Analyst
Richard Crone of Crone consulting LLC said, "This is definitely
a game-changer." He continued saying, "[Wireless carriers]
are the biggest recurring billers in every market. They are experts
at processing payments."There are similar services
already in use in other countries with payments being processed using
smartphones in Japan, Turkey, and in the UK. AT&T and Verizon are
reportedly equal partners in the venture with T-Mobile having a
smaller stake. Retailers are welcoming of a new processing system in
hopes that the fees on purchased made using the system will be less
than the 1% to 2% that credit card firms typically charge on each
transaction today.However, none of the sources that Bloomberg
cites were able to give an indication of how much the processing fees
would be or when the trials of the new payment system would start in
test cities. Fees on credit and debit card purchases are a $40
billion per year industry.
quote: "Sir, I would rather take two bits of string than your credit card. I would rather take a jar of pennies who's value is less than that of your bill. You are going to sit here and listen to all the things I'd rather take than your fly by night credit card"
quote: They have the highest interests AND the highest fee's for retailers, but are unavoidable it seems as they have such a huge market dominance.
quote: Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%
quote: Honestly I don't see why credit card companies charge businesses to accept their cards.
quote: They make more than enough off interest and it only discourages use of the card.
quote: I've just never had the urge to get one as very few places accept either card.
quote: Getting three of those four major carriers to work together on one plan seems unlikely.
quote: Eliminating the middle man makes things cheaper.