Article: http://business.financialpost.com/2011/04/23/smart-phone-money/
"With the first Interac Flash-capable cards expected to become available to Bank of Nova Scotia and Royal Bank of Canada customers this summer, the payment provider has no intention of stopping there. Flash is the first stage in a much longer process, Mr. Wright explained."
Woah, flash is the first stage so, how many stages are there? The second stage explains that Interac will need to take flash and incoporate it into the mobile phone device, with the NCF function. Most researchers say approximately by 2012 we should have all virtual cards up and running. They estimated 2012 as the year for release because testimonials, companies, visa, master, anything you can name of, has already begun testing the feature of it.
“That wave of youngsters is where we could eventually see the phasing out of things like wallets in the much longer term.” Most of the new generation of people will become use to it however, perhaps old generation citizens such as retired people or, people who are not tech savvy will not phase out with the new technology coming out. As the article mentioned, the physical wallet wont fade away because just as with, printed books and newspapers, many people will still prefer the tactile experience of a currency holder over the convenience of a digital alternative.
Competitors who are fighting for online instant transactions will be affected the most. Industries who use online payment such as, Paypal, Google Money, Money West, etc. Small industries who sometimes use cash only for payments, especially when people work in the trades industries. Majority of the times in the trade industries, consumers pay cash.
Obviously banks will make money from this gain. Using virtual cards definitely come with a fee of a certain amount of transaction used. As well as Visa and Master companies will also benefit from this. Any company that would be using the Virtual card feature for consumers needs will benefit.
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