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There are fundamental costs of doing business, to be sure.Just as we all pay a credit card "tax" even if we do leave home with just cash, cardholders also pay for their deadbeat cohorts.As a result of that and other factors mentioned below, the fees, interest charges and markups that plague credit card customers on both sides of the customer/merchant equation will undoubtedly persist on smartphones.

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He is pictured here with Go Pro cameras he already owns'American Express have said to me that unless the money is released from Argos, they will take 10 working days to be able to unlock the funds for me to use again, but until that happens I can't use the funds.

Credit card debt has risen to record levels, in spite of income remaining static.

More Middlemen, Not Fewer ————————-So, the same middlemen will take their cuts for all the same reasons when we switch from credit cards to credit phones – and, likely, there will be even more middlemen, who will add to the rake.

The two main reasons for this are the big players' massive network-effect advantages, and that the internet cannot match the reliability, speed and security afforded by credit card company's private networks, according to Mac Pherson."People tend to underestimate the network effect: A payment system is exponentially more valuable the more people participate in it," said Mac Pherson, adding that competing with Visa and Master Card is nearly impossible, "unless you can find a niche that the card companies are not serving, like Pay Pal did with e Bay.

After all, how can delivering a bunch of ones and zeros – something that's essentially free in most other cases – end up costing three percent of the price of something tangible like groceries or a shirt?