By Justin McHenry

Following on the heels of MasterCard’s recently-announced cell phone payment trial, Visa announced Tuesday the launch of a new “mobile platform” that sets the stage for more cell-phone-as-credit-card scenarios. Multiple vendors in the credit card and cell phone industries have been collaborating for the last few years on phones that would use an embedded chip to transfer credit card data via near field communications (NFC) to special readers set up at merchants that accept credit cards. Visa did not announce any specific trials of the service, but this week’s announcement, along with MasterCard’s trial that uses its PayPass technology to allow cell phone payments, makes it clear that mobile phone/credit card integration is nearing fruition.

The obvious question is whether Visa is rolling out a platform that will coexist with other platforms being tested, or whether a technology battle looms that forces merchants and/or consumers to choose one vendor/credit card company over another.  Will merchants be able to accept mobile phone payments regrdless of the name associated with the credit card? If not, will they choose one technology over the other or demand that the credit card industry agree on a standard?

With the amount of money at stake, it would be easy to assume that a standard will be worked out.  On the other hand, the competition between Visa and MasterCard is heating up, with MasterCard now a public company and Visa soon to follow. It’s too early to tell how the mobile payments story will shake out.

By Seth Harbison

Delta Airlines announced yesterday that frequent flyer accounts with no activity for two years will face the expiration of all miles in those accounts. Previously, the expiration period was three years. While the reduction is significant, holders of Delta SkyMiles credit cards from American Express can keep their accounts active simply by using their cards—no actual travel is required for card users to keep their miles valid.

Delta also announced a change that would allow travelers to combine different ticket types within the same frequent flyer itinerary, saving miles in the process . For example, SkyMiles members could use miles to fly first class on one leg of a trip and coach on the return flight, thus saving on overall miles used.

By Justin McHenry

MasterCard closed out 2006 by announcing two more significant additions to its PayPass swipeless credit card payment offerings. First, MasterCard announced the rollout of credit card accepting vending machines for Cadbury Schweppes products, which include Dr. Pepper, 7Up, Snapple and other beverages. In the second, MasterCard announced the testing of PayPass payments on the Ohio turnpike. Both projects involve the use of USA Technologies “e-Port Payment Solution” to facilitate transactions.

About 1,000 specially-equipped Cadbury Schweppes machines will debut in New York, Chicago and Dallas. The vending machines will accept both traditional swiped credit cards and the “contactless” credit cards that use radio-frequency identification (RFID) to allow transactions by passing the card in front of a special reader.

In July of 2006 a similar rollout of Coca-Cola machines in Philadelphia took place, and MasterCard plans to continue expanding its credit-card-equipped vending machine fleet.

The Ohio Turnpike test is a modest one, with several exits to the west of Cleveland being outfitted with the readers that will allow travelers a new payment option that is potentially faster than digging out cash to pay a toll both worker.  No one’s saying so, but if it catches on, could PayPass put some toll booth workers out of work?