Why Your Phone Can’t Really Replace Your Credit Card | Epicenter | Wired.com: "Meanwhile, the likelihood of an upstart disrupting the existing credit card industry is virtually nil, regardless of any switch to pay-by-phone. Instead, MacPherson says, start-ups should continue focusing on areas where they can gain ground — municipal parking systems, public transportation, vending machines and the like — because all other attempts to disrupt the credit card status quo have failed miserably.
“A lot of people from outside the payments industry have seriously underestimated how durable Visa and MasterCard’s franchise is. [America Online co-founder] Steve Case is one of them. [His] RevolutionMoney was … to be a new card network that would underprice the associations, and it totally cratered and was sold to American Express. Then you have DebitMan [a debit card network backed by merchants, rather than banks, which DebitMan's COO accused of raising rates unfairly and keeping 80-90 percent of resulting revenue]. It totally failed to take off — now, they’re Tempo Payments, and they’re selling to banks
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