[A] Energising money [B] The dilemma of smart-card systems
[C] The future of money [D] Sending money home
[E] Flashing the plastic [F] A cash call
[G] How to pay in Tokyo
Smart cards and mobile phones are quickly emerging as ways to pay with electronic cash.
41. ______.
Nowadays, some of the hottest nightclubs have a new trick for checking the identity of their VIP guests: they send an entry pass in the form of a super bar code to their mobile phones. Mobile phones are becoming an increasingly popular way to make all sorts of payments. In America fans of the Atlanta Hawks have been testing specially adapted Nokia handsets linked to their Visa cards to enter their local stadium and to buy refreshments. It reckons worldwide payments using mobile phones will climb from just $ 3.2 billion in 2003 to more than $ 37 billion by 2008.
42. ______.
More banking services are also being offered on mobiles. On February 12th, 19 telephone operators with networks in over 100 countries said that people would be able to use their handsets to send money abroad. MasterCard will operate the system in which remittances will be sent as text messages. Sir John Bond, formerly chairman of the HSBC banking group and now chairman of Vodafone, has 10rig been convinced that payments and mobiles would somehow converge. "Mobile phones have the ability to make a dramatic change to village life in Africa," he says.
43. ______.
The various "contactless" payment systems rely on a technology called "near-field communication" (NFC). But mobile phones can be much smarter. They can be de-activated remotely; they have a screen which can show information, like a credit balance and product information; they have a keyboard to enter information and they can communicate. This means they can also be used to auth0rise larger payments by entering PIN codes directly on the handset or topped up with stored credit from an online bank account without having to go to an ATM.
44. ______.
To see the potential of mobile-phone money, start in Japan. Most Japanese have at least one credit card, but they tend to stay in their owners' pockets. Housewives routinely peel off crisp YI0 000 ($ 82) notes to pay for their shopping. Utility bills and other invoices are dutifully taken to the bank and paid in cash, or more likely these days at the local convenience store. Yet despite the popularity of cash, the mobile phone is starting to change even Japan's traditional habits."
However, many smart-card systems do not work with each other, but that will change on March 18th when 26 railways and 75 bus companies in the greater Tokyo area will begin sharing a new stored-value system, called Pasmo. This too will be available both as a plastic smart-card or built into mobile phones.
45. ______.
Unlike the Japanese, Americans prefer to use plastic for their purchases. Cards account for more than half of all transactions, up from 29% a decade ago, according to Nilson Report, a trade publication. More than 1.5 billion credit cards are stuffed into Americans' wallets. The average household has more than ten. Banks and credit-card firms hope to convert more cash and cheque payments to plastic with new smart cards. Some versions are already very successful. Many Americans use EasyPass, in which drivers pay for highway tolls wirelessly.
A decade ago some observers predicted that internet banking would render retail banking from high-street branches obsolete. But JPMorgan, Bank of America and others are adamant that people are nowadays using bank branches more than ever. Even if the phone and the smart card replace cash, who gets to collect the fees remains open to contention.