Future cell phones can be used like debit cards for payment
Many people have cell phones and use them for what they were originally designed for–communication.
However, the Boulder-based company FEEDtribes, is creating a new use for cell phones.
Instead of carrying around cash, credit cards, or checks, FEED allows users to pay for food with their cell phone.
“Our grandparents used cash or checks, our parents used credit cards, we’re going to use mobile phones,” said Rod Stambaugh CEO of FEEDtribes.
The process just require the use of a cell phone’s text messaging function. Once you sign up for FEED, you will get a four-digit PIN. When you first sign up, the PIN is the last four digits of your cell phone number, but you can change your PIN anytime on the web site.
When you’re ready to order, or even while you’re ordering, text your PIN to FEED. FEED will ID your account and reply immediately with a text message that has your account balance and a transaction code. The account balance is how much money you have left in your account. The transaction code will be four digits. When you’re ready to pay, you give the cashier the code, they give you a receipt, and then you’re finished.
Boulder resident Crystal Thompson likes the idea.
“I think it can be convenient if you don’t happen to have your wallet,” Thompson said. She also said she would like the ability in the future to be able to use FEED for airline tickets as a way to accumulate frequent flier miles.
Merchants also benefit from the FEED service because a transaction with FEED costs less than one with a credit card. So far, casual dining restaurants make up the majority of places that accept FEED as a method of payment, but in the future Stambaugh hopes to be as common as VISA and MasterCard. His company is also working with Internet vendors because, as he said, FEED is more secure.
One of the ways FEED keeps your information secure is by using four-digit transaction codes that expire. Each time you make a transaction, you get a different code that is good for one use, or, if you change your mind and don’t use the code, it expires within 15 minutes.
For more information, check out FEED.
