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Can the Android Smartphone’s replace Debit Cards?

Can the Android Smartphone’s replace Debit Cards?
Reports have recently exposed Google’s future plans of turning Android handsets into the next best way of conducting electronic transactions. Yes, Google is collaborating with Mastercard and Citigroup to create a mobile payment system for all Android handsets.

This deal and related technology are of course in their initial stages, but this system could possibly allow users to wave their handsets in front of a wireless reader at a checkout counter. Today, more and more mobile phones have near-field communication features that retailers and other card companies are hoping to exploit, in spite of rampant security concerns.

According to the reports, the terms of agreement do not involve Google taking home the slice of the payment, but instead they would be using the data from these transactions to get a better idea of consumer’s spending habits, which proves to be very valuable for retail advertisers.

This campaign will get started with users of Citigroup-issued debit and credit cards being able to use these services by first activating a mobile payment application on their handsets.