Mobile Phones as Credit Card?

 The RBI today announced that it is working on formulating a plan to develop a mobile payment system. In other words, it means using your mobile as a credit card. The theory behind this thought is that there are 250 million mobile phone subscribers in India and growing rapidly, whereas there are only 10 million credit card users in India. The idea is to have more people use mobiles as a banking option.

The whole idea behind this initiative is to provide easy access to users where they can use their mobile phone to make purchases. I am not sure how they plan to implement this. Credit card applications are screened and filtered before being approved as being credit worthy, how are they going to screen mobile phone users? Based on their last statement? I can understand if existing credit card users are able to use their mobile phones as another medium to perform a transaction but converting a mobile phone user into a credit card user?

Using your mobile to carry out banking operations is fine since you do not need any credit worthiness to do that, but providing credit facility on the same will be interesting to watch.

Like I said, this is still on paper and a lot of thought needs to go into it. How safe is this going to be? More people loose mobile phones than they loose credit cards, is this going to be secure enough?

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