The “Next Generation” of Credit Cards and Banking

Mobile phones will play a significant role in the “Next Generation” of financial services. Who knew when Alexander Graham Bell first invented telephone in 1876 that it would eliminate the need to carry money in peoples’ wallets? It is astonishing how the technology has emerged to shrink the needs of a traditional bank for customers to do their transactions.

The concept to carry less money in peoples’ wallets started to emerge when credit cards first came into the market during 1920s. Later, the invention of smart cards took the credit card payments into the next level. Today, smart cards have gone through a radical change, and now been used for everything from credit cards, paying bus fares, entering secure building, borrowing from libraries etc. The most common smart card applications includes Credit cards , Electronic cash, Computer security systems, Wireless communication, Loyalty systems Banking, Satellite TV, Government identification etc. Financial institutions have been adopting the smart card technology aggressively. These activities include, but not limited to, credit cards, debit cards, corporate cards etc. Major credit card companies such as American Express, Visa, and MasterCard have their own smart card technology built into their credit/debit cards. This includes Express Pay from American Express, Contactless from Visa, Paypass from MasterCard etc.

Now the concept of digital money is about to make the next revolutionary change from smart cards into mobile phones. The leading credit card company, that operates world's largest retail electronic payment network, is planning to work with Nokia, the world’s leading phone manufacture, to build a mobile phone that takes financial transactions into the next level. Tim Attinger, Head of Global Product Innovation at Visa Inc, says "Mobile payments and services are one of the most vibrant areas of innovation at Visa, as we seek to accelerate the migration from paper forms of payment to digital money". He also maintains the view that "Visa is already better money - more convenient, reliable and secure than cash.

This new invention would allow the customers to use their mobile phones “to pay for goods and services; initiate mobile money transfers to other individuals with Visa accounts; receive near real-time notifications of activity on their Visa account; and "opt in" to receive offers and discounts from merchants.” This concept would allow the mobile payments a reality for consumers around the globe. Consequently, the “Next Generation” of financial services will be based on the concept of mobile banking. Although this concept may not eliminate the entire baking system, it will definitely shrink the need of a traditional bank for customers to do their banking.


Visa Inc.; Visa and Nokia Working Together to Deliver Payment Applications for Next Generation Mobile Devices. (8 October). Telecommunications Business,320. Retrieved November 1, 2008, from Sciences Module database. (Document ID: 1565706591).