AT&T & Verizon to Turn Phones into Credit Cards?

AT&T & Verizon to Turn Phones into Credit Cards? - Tech Talk - CBS News
The nation's two largest cell phone operators are forming an alliance with the credit card company Discover Financial Services and global bank Barclays to create a new service that could displace credit and debit cards with smartphones, the news agency reported. T-Mobile USA, the fourth largest wireless operator in the U.S. is also believed to be a minority partner in the venture. AT&T and Verizon Wireless are believed to be equal partners in the venture with T-Mobile holding a smaller stake in the venture, Bloomberg also reported. The companies are supposedly gearing up to test the new service in stores in Atlanta and three other cities, according to unnamed sources cited by Bloomberg.

Representatives from AT&T and Verizon Wireless declined to comment on rumors of the new alliance.
The way the service would work is that consumers would be able to use their smartphones, instead of plastic credit cards to make purchases. Discover would process the payments and Barclays would be the bank that helps manage the accounts, the Bloomberg story said.