For a long time now, credit cards have been one of the most widely used and accepted method of electronic payments. However, now if the vision of two of the wireless carriers in the U.S, Verizon Wireless and AT&T is to be believed, then the era of credit cards is soon going to come to an end. Both these wireless carriers are now planning to collaborate to usher in a new electronic payment method, wherein the credit cards will be replaced with smart phones.

As per the initials plans, the entire project will be inclusive of Deutsche Telekom AG owned, T-Mobile USA and all three wireless carriers will be working with Discover Financial Services and Barclays Plc, where in the smart phone based payment system will be introduced as a test project in Atlanta and three other U.S cities. As per the program, the users will be able to make contactless electronic payments, via their smart phones. This new initiative would definitely prove to be threatening for credit card big hitter, Visa and MasterCard. However, a contactless payment system would be new only in the United States, as many countries such as the likes of Japan, United Kingdom and even Turkey have already been taking advantage of the contactless technology.

During the contactless electronic payment, Barclays would be responsible for the management of the accounts and Discover would be assuming the role of processing the payments.

Via Bloomberg