Smartphones may be taking the place of credit and debit cards soon. (Photo Credit: CC BY/Edmund Jenks/Symbology)

Banks and credit card companies have made a great deal of money off consumers who have depended upon them for both impulse and emergency purchases via short term credit. However, there may soon be a way for consumers to escape the wheel of revolving interest debt if AT&T and Verizon Wireless have their way. According to Bloomberg, the swipe-and-pay “PayPass” technology used on some smartphones is ready for a revolutionary – many say evolutionary – step. Smartphone pay for purchases and bill pay may become a reality soon, making credit cards and even debit cards obsolete. Mobile billing via the wireless carriers would simply place charges on the consumer’s monthly wireless bill.

Smartphone pay threatening Visa, MasterCard

A proposed partnership between AT&T, Verizon Wireless and T-Mobile would work through Discover Financial Services and the Barclays banking conglomerate. Consumers would be able to pay with a “contactless wave of a smartphone,” according to the Bloomberg report. Considering the growing popularity of smartphones in the United States, more than 1 billion plastic cards could be in danger of hitting the junk drawer if smartphone pay takes off as experts predict it will. Wireless technology consultant Richard Crone called the proposed payment technology a “game-changer” that will fit naturally into the mobile billing industry, as America’s carriers are “the biggest recurring billers in every market” and they are “experts at processing payments.”

What Visa and MasterCard stand to lose

Visa and MasterCard combined handled $2.45 trillion of U.S. consumer spending on general-purpose cards in 2009. That’s 82 percent of U.S. spending within that market, according to industry newsletter Nilson Report. That kind of dominance contributed to $3.54 billion operating income for Visa and $2.27 for MasterCard last year. ATM interchange fees (aka swipe fees) on debit card purchases also generate a significant amount of money for banks, as much as $40 billion per year. Smartphone pay won’t completely replace credit cards, as mobile billing won’t necessarily offer revolving credit, but debit cards in particular could be severely damaged. Short term credit such as payday loans could show  significant gains against credit cards, particularly through mobile applications.

Younger consumers leading the charge

A study by Boston-based consulting firm Mercatus LLC indicates that 80 percent of consumers between 18 and 34 years of age are ready to begin using smartphone pay and similar mobile financial services. There are retail barriers that must be overcome first, according to the Federal Reserve Bank of Boston, but there would also be incentives. According to Bloomberg, it costs retailers approximately $200 for each credit card reader. If smartphone pay becomes universal, that would save retailers money and only cost smartphone manufacturers another $10 to $15 per handset. Retailers would also likely be able to send rewards and other information directly to consumers via the smartphone pay interface.

Sources:

Bloomberg

Federal Reserve Bank of Boston

Your smartphone can also serve as a retail credit card terminal

Palm became best-known for Personal Digital Assistants, but the transition to smartphones did not go smoothly. Image from Flickr.

Despite grandfathering the concept of smartphones with personal digital assistants, Palm hasn’t been doing so well lately – so the Palm HP buyout that has been announced this week couldn’t come at a better time. This $1.2 billion pay day purchase of Palm, HP is acquiring the Palm operating system, intellectual property, and phone handset designs.

HP Palm purchase saves Palm

The HP Palm purchase could not have come at a better time for Palm. Despite receiving standing ovations and great reviews for its new operating system and web browser, Palm has been struggling. The technology behind Palm smartphones has been well-reviewed, but a combination of slow sales and frustrating design have meant that Palm’s revenues have been falling to dangerous levels. In its latest filing with the SEC, Palm even outlined this problem as “slow sales of the company’s products, which has resulted in low order volumes.”

HP Palm plans

The HP Palm purchase has been questioned by some Wall Street investors. The $1.2 billion price tag seems overvalued for a company whose stock was trading at about $1 in 2008. However, Hewlett Packard has plans for the Palm operating system. In the HP Palm purchase announcement, HP outlines its strategy as “creating a mobile ecosystem” that “leverages HP’s channel and enterprise connections.” Translation – HP may be distancing itself from being a Windows-only manufacturer and entering the phone, tablet, and mobile markets.

HP Slate to run on Palm OS?

Though HP has been a strategic partner with Microsoft for a very long time, HP may very well be using the HP Palm partnership to get a new operating system. There are doubts that Windows 7 will be “lightweight” enough for the HP Streak. The HP Streak is rumored to be released as a smartphone, slate computer, and more – so the polished Palm OS would be the perfect match. This would also release HP from Window’s regulations and release delays. It could be a very powerful partnership that has a chance to challenge Apple’s dominance.

HP Palm to merge in July

The HP Palm purchase is not yet approved by all regulatory agencies. While both boards of directors have approved the purchase, Palm stockholders and regulatory agencies still need to approve the purchase. If the HP Palm merger is approved, HP will become complete owner of Palm around July 2010.

Sources:

HP Press Release
Palm SEC filings
ZD Net

The newest Blackberry Bold 9650 - without the trackball - is set for a May 23 release. Image from Flickr.

The second-most popular smartphone maker, Blackberry, has announced that the Blackberry Bold 9650 and Blackberry Pearl 3G will both be hitting the market soon. Both the Blackberry Bold 9650 and Pearl 3G are improvements on existing Blackberry models and will include upgrades such as Wi-Fi. The Bold 9650 is set to be released on May 23 for $299.99 – so now is the time to get guaranteed payday loans if you would like the newest Blackberry.

The Blackberry Bold 9650

Set to be released on the Sprint Network on May 23, the Blackberry Bold 9650 is built on the same technical chassis as the Blackberry Tour. The Bold 9650 looks very similar to the Tour. However, the sticky and often replaced trackball has been swapped out for an optical touchpad. Bold 9650 will also include Wi-Fi capability. The Bold 9650 include multi-national phone suppoprt, GPS, Bluetooth, a 3.2 megapixel camera, and a 2.44 inch screen, just like the Blackberry Tour did. For jetsetting payday loan lenders and businesspeople the Blackberry Bold will easily cross national boundaries.

The Blackberry Pearl 3G

The Blackberry Pearl was the first Blackberry phone that got a market share for a wider audience than smartphone users – and the Blackberry Pearl 3G is set to continue that tradition. The first U.S. phone that has 802.11n Wi-Fi, the Pearl 3G is designed to connect with 3G HSPA networks or available Wi-Fi connections. The zippy processor, 3.2 megapixel camera, GPS and Bluetooth mesh with RIM’s Blackberry O.S. to give the Pearl 3G full-featured smartphone support. At the same time, the Pearl 3G is said to be available in 2 models – the 9100 with a 20-button keypad and the 9105 with a “traditional” 14-key pad. This will be the first Blackberry that will use a phone keypad – an attempt to ease the transition for first-time smart phone users.

Blackberry Pearl 3G release delayed

While the Blackberry Pearl 3G has been announced, the release of the phone is sure to be a while. The Wi-Fi alliance has yet to certify the Pearl 3G, so RIM has some testing and technical approvals to be completed before the Pearl 3G can hit shelves. AT&T and T-Mobile are set to debut the Pearl 3G, though neither carrier has provided a release date or price for the Pearl 3G.

RIM Blackberry vs. iPhone vs. Android

Research in Motion – the makers of the Blackberry – and Apple – the makers of the iPhone – have been locked in a cell network battle for years. While Blackberry first created smartphones for general use, iPhone was able to bring app development and “fun” smartphones to the general public. The Blackberry Pearl 3G and Bold 9650 are sure to prove popular, but with so many new entrants into the smartphone market, one has to wonder who will come out on top. What do you think?

Samsung's 3G phone offerings have been generally well-accepted. Image from Flickr.

The annual CTIA conference in Las Vegas started today, and as expected, wireless companies have started rolling our their newest products. Just a few hours ago, the big buzz started when Samsung announced its new Galaxy S smartphone – a 1 GHz phone that will run Google’s Android and improved screen technology. The phone’s price has not yet been set, so no need to get a no fax cash advance – yet.

Samsung Galaxy S highlights

During his keynote speech at CTIA, the head of Samsung’s mobile phone division JK Shin announced the Galaxy S phone. One of the biggest improvements of this new phone is the new 4-inch Super AMOLED screen that will be brighter and less reflective. Additionally, the Samsung Galaxy S phone will features full 1Ghz processor that will be able to handle multiple applications and functions at once. The Galaxy S will also feature:

• 3G wireless support
• 4 megapixel camera
• HD video recording capability
• Global Positioning System capability
• Bluetooth 2.1 + EDR
• Wi-Fi functionality
• MicroSD support up to 32GB

Software features of the Galaxy S

While the features of the Galaxy S smartphone from Samsung are impressive, it is a list that is quickly becoming standard for smartphones. Instead, Samsung highlighted the software features of the Galaxy S during the CTIA announcement. The Galaxy S will be running Google’s Android operating system, with the “Smart Life” Samsung skinning. There will be a user-defined “daily briefing” as well as location-based search options, integration with other devices, and a Social Hub feature. Most importantly, Samsung is going to try and make use of the new low-power, reduced-glare, brighter AMOLED screen by inking “exclusive content deals” to deliver movies, TV shows, and books directly to the phone.

Watching HD video on your Galaxy S

At the same time Samsung was announcing its Galaxy S smartphone, DivX, a digital media encoding company, announced its partnership with Samsung. DivX is officially certifying two phones – the Samsung Wave and the Samsung Galaxy S as HD video ready. If you are at the CTIA show, DivX and Samsung will be displaying the 720p resolution on the four-inch Galaxy S screen. While being able to purchase and watch full-length movies and videos on a Samsung Galaxy S is an attractive proposition, there are detractors wondering if customers will be willing to spend paycheck loans on films to watch them on a 4-inch screen rather than larger home screens. Either way, it certainly appears that the Galaxy S from Samsung is putting a shot across the bow of other smartphone manufacturers.

Sources:

Reuters
Information Week
Engadget

TigerText does exactly what legions of Judge Judy litigants, wandering spouses (yes, Tiger Woods, that means you), and college kids would take out huge cash advance loans to be able to do – keep text messages truly private. As the company puts it on their website, they help you “cover your tracks”.  For the record, TigerText was named long before the golfer’s scandal, but you can bet he wishes he’d used the application, too.

TigerText keeps your text messages private

The concept of the TigerText App is simple – you set how long you want a text message to “live” and at the end of that time, the message gets deleted. If you would like to keep messages around for a week, you can. If you would prefer that a text message gets deleted as soon as you read it, TigerText can do that too. Rather than storing text messages on your cell phone provider’s server or cell phone handsets, TigerText runs a set of independent servers that completely erase the text messages when they are set to expire.

Both people need TigerText

Simply downloading the TigerText app onto your iPhone does not mean, though, that your text messages are safe. The coding of the program requires that both the sender and the recipient of the text have TigerText installed. Receipients who do not have TigerText installed must install the application, and then they can read whatever message you send for free. However, if they want to send their own self-destructing messages, they only have 15 free days before they have to pay. The pricing depends on the number of text messages sent each month, so some teenagers may end up having to take out overnight loans just to pay their phone bills.

TigerText for Blackberry and Android

Right now, TigerText is only available for the iPhone. This means if you’ve got a Blackberry or Android smartphone, TigerText isn’t going to be able to keep your messages off of Texts From Last Night. The company says they are working on versions for both of these smartphone operating systems. If your phone is a little less smart, well, then deleting your text messages is your own responsibility. Just remember that when a text message is sent over normal SMS systems, your phone company can store that message and retrieve it later, even if you delete it off your handset.

Know how much TigerText will do for you

Like every good cell phone application, TigerText does give you a few options. The date, time, and recipients of your text messages will be saved on your handset unless you select the “delete history” option. Any message sent through TigerText cannot be forwarded and cannot be saved – though anybody who really wants to save a message can always take a photo. It may not be perfect, but TigerText can certainly give you a hand next time you want to feel like you’re sending a Mission Impossible style message.

Dell was first to bring us Netbooks.

Techies and gadget lovers must feel like their heads are going to explode this week — and the Consumer Electronics Show hasn’t even started yet! This week Google has shaken up the smartphone market big time with the release of Nexus One. The new gadget, which Google is calling a “superphone” is offered at a $350 discount if you get a T-Mobile contract.

It appears AT&T is responding with a resounding “Oh no you di-in’t!” Of course after the release of the Droid, only available with Verizon, and Google’s deal with T-Mobile, I expected AT&T to answer, and here’s what it’s saying: “Dell Mini 3.” No word on the price of this baby yet, so don’t fill out you  pay day loan application just yet.

Oh, just you wait

The Dell Mini 3 is not a brand new smartphone; it has been available in China and Brazil for a few months. Now, it’s the latest player in a game I like to call “Who’s The Smartest of Them All,” which is played in the U.S. and pits smartphones that run on Android processors against each other.

But Dell Mini 3 is only the very first step in AT&T’s game plan for how to combat Droid, Nexus One and all of the other phones Google will be offering through it’s brand new online cell phone store. AT&T says it will introduce five new Android phones in the next few months. Maybe the next few weeks.

Dell Mini 3

The Dell Mini 3 is similar to other smartphones out there, in both looks and operations. It has the same processor as the Droid, and it looks like the Nexus One, if I do say so myself. There’s nothing particularly remarkable about it as far as whether it has something to offer that other phones don’t. But it does run on AT&T’s network and Google’s processor so … there’s that.

As far as what we can expect from the new offerings, there’s not a whole lot of detail yet. From AT&T’s press release:

AT&T today announced plans to launch five new devices from Dell, HTC and Motorola based on the Android platform. The company also announced a major initiative to expand the universe of mobile applications beyond smartphones to more mobile phones – and spur future app development for emerging consumer electronics devices, its U-verse TV platform, and enterprise and small business workplaces.

Clearly,this announcement was just made to keep AT&T in the game, as the only real information is that “Dell Mini 3 is coming to the U.S. … sometime. Soon.”

I know what you’re thinking after reading a title that says “read the user manual.” Why would you thumb through pages and pages of lame text when you could just look up what to do on the Internet?

While reading the owner’s manual for Motorola Droid tips is the most obvious way to understand how to use your new device, it certainly isn’t the most fun or the most efficient. So, in the spirit of giving people what they want, here are some Motorola Droid tips that will make it easier to use that hot new gadget that you’ll be paying off installment loans for in the next few weeks.

Quick launch

One of my favorite things about my archaic cell phone — which is small but has no camera or Internet capability — is that when I push the call button, it pulls up the 10 phone numbers I’ve called most recently. Using Quick Launch on the Motorola Droid is a similar idea, but it pulls up the applications you’ve used most recently.

In order to use the Quick Launch function, hold down the “home” button.” The six apps you’ve used most recently will pop up on your screen. Let’s see, mine would probably include Facebook, Twitter, mp3 player … kind of like my web history on my personal computer. Sounds like a handy feature.

Beware battery drainage

One of the features touted on the Motorola Droid commercials was its interchangeable batteries. This feature is necessary because if you’re using your Motorola droid for its intended purpose — as though it’s a tiny computer — it’ll go though battery much faster than a regular cell phone.

It makes sense. I only have to charge my cell phone every two or three days, but my laptop runs out of battery after just a couple of hours. The battery for the Motorola Droid lasts a lot longer two hours, but a lot less than two days. Think of your Motorola Droid like a laptop: you have to plug it in or switch the batteries if you’re going to be using it constantly for several hours. Tech Banyan warns:

Be careful when using a pouch holster for your new Motorola Droid.  If it contains magnetics, it may turn your Motorola Droid on “car mode.” This will eat up your battery life quicker than you think.

More Motorola Droid tips

For additional Motorola Droid tips, read “10 Tips for Your Motorola Droid,” from Tech Banyan. For specific battery-charging Motorola Droid tips, hit up PressZoom. To read, share, comment or otherwise geek out in general on Motorola Droid tips, check out Android Forums.

As its name indicates, Android Forums is a space for chatting about all Android phones — smartphones that operate on the Google Android processor. So far, the big ones are, of course, the American-made Motorola Droid and its cheaper, slower Taiwanese cousin the Droid Eris, made by HTC. For more Motorola Droid tips, you can find the user manual online by going to the Google homepage on your Droid and clicking the blue button in the upper right-hand corner.

Motorola building image from Flickr.

Controversial commercials that take shots at the iPhone have caused the release of Verizon and Motorola’s Droid phones to be a much-anticipated event. Today, the companies have finally released pictures, prices and the official retail date for Droid phones.

Word on the street is that the Droid will cost $199 with a two-year Verizon contract and a mail-in rebate. The first installment in the Droid phones line will be available to purchase on Nov. 6. Did I say first? Yep, reports are circulating that the Verizon, Motorola team plans to release up to three Droid phones by the end of the year.

Suspense and more suspense

So what are fans of Droid phones – and more importantly people who plan to give Droid phones as gifts — to do? Putting off holiday shopping is generally a bad idea, but you certainly don’t want to end up paying off a credit card charge for the wrong Droid phone.

The Christian Science Monitor appears to have some inside info about Droid phones. Check out some of the rumors about Droid phones technology that have been making their way around the Internet. There’s no information about when the other Droid phones will be released, so I guess  procrastinators have an advantage in this case.

Verizon Droid review

A few lucky tech testers have gotten their hands on the Verizon droid and reviewed it. One reviewer from China (see http://english.dgshi.cn/content/200910/294430.html) says the Droid is “blindingly fast,” and the the slide-out keyboard is very comfortable to type on. It’ll take time to find out how durable the keyboard is, but the Droid appears sturdy thanks to its metallic body.

The Droid comes with stand that acts as a desk cradle, charger and  multimedia station. The reviewer says “The movies, games and pictures all were crystal clear and really sharp.”

Marketing mayhem

The makers of Droid phones were audacious enough to directly target the iPhone with their advertising campaign. “Everything iDon’t, Droid does” the commercials say, after listing several items such as “iDon’t run simultaneous apps.”

This bold marketing strategy that highlights several enticing features of the Droid has really caught people’s attention. Watch the full commercial at DroidDoes.com.

Google power

Yet another indicator that Verizon and Motorola are about to hit paydirt with the Droid phones is that the venture has Google power behind it. The Droid phones are powered by Google Android 2.0 operating system.

With Motorola on the outside, Google on the inside and Verizon — who boasts the largest coverage area in the U.S. — making the connections, I think we’re about to see the rich get richer. What do you think; are Droid phones going to drastically change the smartphone market?

Viper SmartStart app transforms your iPhone into your car keys. Image from Wikimedia.

The Viper SmartStart is a new smartphone application that lets you start, lock, unlock and turn on your car’s alarm system from far away. The app is available on iPhone and iPod touch. Though users can download the app and use it for a year for free, it only works if you have a Viper alarm system in your car, hence the name Viper SmartStart. Using the Viper SmartStart service also costs $30 per year after the first year.

Viper alarm systems cost $500 for a hardwired version or $300 for a modular version. The Viper SmartStart app can also operate as a panic button to set off your car alarm, and it can unlock your hatch or trunk as well as the doors.

Viper SmartStart business plan

I am not sure whether the Viper SmartStart phone app will convince people to get fast cash loans and buy a $500 alarm system so they can remotely start their cars. However, I am certain that people who already own both an iPhone and a Viper car alarm will download the free Viper SmartStart app.

Reports say the Viper SmartStart lets you use all the controls available through the app from basically an unlimited distance. Just remember, if you start your car up when you’re far away from it, make sure the doors are locked. I imagine this little app will really come in handy for people who like to have their cars warmed up in the winter before they get in them in the morning. And, of course, when summer brings the heat back, users can cool their cars off in advance as well.

Comparatively speaking

Most cars nowadays come with remote start and locking capabilities, but the biggest difference between a regular remote start feature and the Viper SmartStart app is the range at which it works. A YouTube ad for the Viper SmartStart says the range is virtually unlimited.