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HarryCaraysGhost (57.40)

An Informal poll



August 03, 2010 – Comments (22) | RELATED TICKERS: V , MA

Greetings fellow Fools,

I was wondering if you could help me out by answering the question-

Would you use your cell phone as a credit card?

Looming Threat for Visa, MasterCard From AT&T, VerizonAugust 02, 2010 – The Motley Fool

Personally I would'nt due to security concerns, and the fact that I've lost two phones in my life but never my wallet.

Also If any experienced Fools out there have faced a situation where new technology threatens to take away market share of a company they owned, I would love too hear the story about what steps they took.

Full disclosure- Visa is my largest holding so I will be monitoring events very closely.

All replies are greatly appreciated.

Thanks in advance,



22 Comments – Post Your Own

#1) On August 03, 2010 at 7:17 PM, chk999 (99.96) wrote:

I would, but I wouldn't be an early adopter on it. I'd let others walk into the mine field first and find the mines.

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#2) On August 03, 2010 at 8:01 PM, SockMarket (34.52) wrote:

I probably would, as long as there is some sort of insurance against theft. My feeling is that the general answer will be a cautious yes, but we will have to see.

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#3) On August 03, 2010 at 8:12 PM, Option1307 (30.50) wrote:

I definitely will, but will wait and see as others mentioned.

In regards to affecting V/MC I think you are safe for the foreseeable future. Speedpass is a perfect example of technology taking a long time to catch on, especially with older generations etc.

I use plastic for everything I purchase, honestly I probably use cash only once a month if that. Simply because I get cash back and pay off my cc in full every month so there is no reason not to. However, I'm in my mid 20's and usually adapt to the "new" tech stuff rather quickly. I don't believe this is the case for the majority of people, especially the older generations.

For ex., my parents use cc for larger purchases but still pay for a lot of items in cash and/or check. I try and get them to use plastic but they are just stuck in their ways.

My point being, I don't see telecom companies implementing this technology overnight, and even when they do, I don't foresee the majority of the population switching over to it for a long time.

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#4) On August 03, 2010 at 8:15 PM, Starfirenv (< 20) wrote:

I wouldn't use a Credit Card as a C.C. (unless I was renting a car).

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#5) On August 04, 2010 at 12:10 AM, MegaEurope (< 20) wrote:

I might do it as an alternative to my current card/account.  I wouldn't set up a new account just to be able to swipe my phone (especially if it was through a phone company instead of through a credit card company.)

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#6) On August 04, 2010 at 12:24 AM, truthisntstupid (77.31) wrote:

I've lost my wallet a couple times but never my cellphone.  But in answer to your question, I might use my cell as a debit card if I could.  I refuse to ever have credit again.  Haven't had it for twenty years.  Thrown away a lot of pre-approved cards in the last few years, though.  It isn't like I couldn't have had it.

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#7) On August 04, 2010 at 3:46 AM, djshagggyd (< 20) wrote:


I've never owned a credit card, but like Truth... if a cell phone could be used as a debit card, I would probably try it out... (though I like chk999's idea of letting everyone else test the waters first)

One time someone stole my wallet and used my debit card to buy a few things. I called Visa and they credited my account immediately. Ever since then, I haven't been too worried about anyone stealing my money via debit card or by using the number online, etc...

I think in the end, as long as you keep track of the transactions and the balance everyday... you're pretty safe.

I just finished reading the TMF article you linked to above. That is a pretty interesting story... and it's hard to say how it will all play out.

I wish you the best of luck my friend!

Here is a little something to heighten your senses and help you concentrate as you pontificate the comments on this blog:



p.s.-Truth, I know you don't like the hypnotoad.  I mean you no disrespect. It's just that msftgev and the toad have a special relationship... and I know msftgev will appreciate the toad's  presence. 

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#8) On August 04, 2010 at 4:02 AM, truthisntstupid (77.31) wrote:

I'll tell you something about my little Hynotoad fit.  You and everybody else.  I would give anything to go back and undo my part in that whole fiasco.  Have you ever looked at Hypnotoad's picks?  All green thumbs.  He had a rating in the mid-90's, and didn't get it by shorting ETF's or whatever.  He got it by stockpicking.  I looked.  I respect him more than you think.

It was late at night.  The "featured blog"  was an All Glory.  The first two other listed blogs were All Glories.  I was irritated because other blogs that actually had something to say were being pushed off into oblivion.  And I wrote that terrible blog that some people will never forgive me for.

I've regretted it ever since.


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#9) On August 04, 2010 at 11:26 AM, facwinjeff42 (< 20) wrote:

I agree with chk999. I'd like to think the "minefield" would get smaller thanks to other easily accessible technologies -- such as GPS tracking, fingerprint authentication, voice-activated controls, even simple unlock codes -- that could reduce or eliminate the effects of a theft.

But I absolutely LOVE the idea of waving my phone and strolling through a checkout line. The simple attractiveness of the idea tells me there will be enough interest to get this venture going with some momentum.

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#10) On August 04, 2010 at 12:12 PM, Teacherman1 (< 20) wrote:

I hardly even use my cellphone as a cellphone. Unless it is a wrong number, the only calls I ever get are from my wife, and those are about the only calls I ever make.

I much prefer a debit card to a credit card, but somehow the idea of waving my phone in front of something to make a purchase just doesn't seem quite right to me.

Maybe I am just to old a dog to learn a new trick.

Hope all have a great day and a profitable week. 

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#11) On August 04, 2010 at 12:27 PM, lorteungen (99.46) wrote:

I absolutely would and I've been wondering for years why this has taken so long. I would love if my keys could be integrated with the cell phone as well so I wouldn't have to carry around all that stuff in my pockets.

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#12) On August 04, 2010 at 12:49 PM, Griffin416 (99.97) wrote:

Batteries never run out on your credit card. I think it will be used more for automatic payments, transfers and balance checking. I don't believe it will catch on as the sole swiper.

When you buy stuff on the computer, say, from  AMZN, say while you are at work. Which is when most people do it...they use credit cards, there is no need to use a phone when you are on the computer. The app is a novelty with some use.

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#13) On August 04, 2010 at 2:27 PM, FracturedVision (< 20) wrote:

Griffin -

The chip is RFID - so it is attached to the phone, yet does not require power.  This could mean people might get to the point they no longer need or carry a wallet, if for example, some sort of electronic ID comes along to replace a drivers license.

Disclosure - I am an employee of one of the companies in the article but do not represent them or speak on their behalf.

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#14) On August 04, 2010 at 3:23 PM, Griffin416 (99.97) wrote:

RFID requires no power, that doesn't seem possible? Who makes this chip?

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#15) On August 04, 2010 at 4:30 PM, Starfirenv (< 20) wrote:

Griffin- "passive" or externally powered is for real. Ck out AVY.

There's one in your passport. Before you even get to the customs counter they know who you are, where you've been, tax status, student loan,child support, mothers maiden name, shoe size, credit score and favorite color. HMMMM....Liscense plates? Credit cards? "Real ID"? Yup.
 Psst- Looks like AVY is WAL's vendor of choice.
Disclosure-AVY- No position at this time but watching closely.
WAL- Own it. Also see, PSID,ADSX,CHIP, DIGA Regards.

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#16) On August 04, 2010 at 5:23 PM, AltData (32.11) wrote:

Hmmm, maybe with a Blackberry. They seem to have the best security according to Ahab the Arab.

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#17) On August 04, 2010 at 8:43 PM, HarryCaraysGhost (57.40) wrote:



You made my day with The Hypnotoad pic. Now whenever I need investment advice he's right there on my blog, thanks man.

One thing I want'ed to mention-

You've stated that your goal in investing is to get enough capitol for a down payment on a house and a fuel efficent helicopter.

When I bought my place,I was like you never owned a credit card. Thought that was a good thing, turns out it was'nt. Since I had no credit score they added a quarter point to my interest rate.

Not sure if a debit card covers this but I think not. 

Why not get a c.c from you local credit union (they won't jerk you around on the rates, like the big banks will)

Sometimes all that is on my bill is a twelve pack of BUD. I pay it off every month so no worries. Also it was conveinent when my car broke down on the Ike in the middle of December, with no cash.

Also Bought my T.V with a Circuit City Visa card. No interest if you pay it off in 2 years. I was done in six months. So yes my fiscal responsibility single-handedly brought that company down.

Still smiling about The Hypnotoad pic :)


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#18) On August 04, 2010 at 8:50 PM, NOTvuffett (< 20) wrote:

The hypno-frog used Jedi mind tricks to commit credit card fraud, that is the real reason he was ejected, lol.

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#19) On August 04, 2010 at 9:30 PM, HarryCaraysGhost (57.40) wrote:


Even though I'm a big fan of The Hypnotoad, I never held any animosity towards you, as a matter of fact your one of my favourites since I love the power of compound interest, I turn to you for any dividend discussion.

Recalling back TMF was in a charity drive at the time so that whole blowup made alot of money for charity, Even though some of the comments were mean spirited the majority were freakin' hilarious. I'm sure whomever was behind The Hypnotoad was laughing His/Her/Its ass off that it became such a big deal.

I myself posted a blog that I regret to this day (Sir Mix-Alot was involved) I hope fellow Fools have forgiven me, but my only solace is that it was during that same charity drive.

To me The Hypnotoad is a state of mind that remains with me. And his banishment has effectivly made him a martyr that shall be remembered.

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#20) On August 04, 2010 at 10:35 PM, HarryCaraysGhost (57.40) wrote:


That's an excellant point, I would think that RIMM would not want to be in the credit part of processing transactions. But if they teamed up with Visa that could work.


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#21) On August 05, 2010 at 6:30 PM, HarryCaraysGhost (57.40) wrote:


Cool website I'll have to check it out further when I have more free time.

Thank you all for your replies, this has been an interesting conversation and gives me alot of things to think about.


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#22) On August 05, 2010 at 9:21 PM, Starfirenv (< 20) wrote:

It's all good John, I'm just an informal kinda guy. (interesting site for sure).

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