'Consumers concerned' mobile banking will turn phone into credit card

Mobile phones could effectively become similar to no-limit credit cards, consumers have warned.

Consumers are concerned that making a transaction with a mobile phone could lead to it effectively becoming a no-limit credit card.

This is according to Lesley Parker, writing for the Age, who noted that people are worried that this could be particularly problematic if a handset is stolen and "that it may not be as easy to freeze/close an account as it currently is with bank accounts and credit cards".

And Ms Parker pointed out that the Australian Communications and Media Authority (ACMA) has noted potential ramifications of "wave and pay" technology, which includes people being able to swipe their device over a reader to pay for goods.

During research on the technology, the ACMA stated that there is a "possible need for consumer safeguards", such as protections for children.

This news comes after Square delayed shipments of its payment device that allows users to collect other people's credit card dollars on their mobile phones was delayed in June.

By Emma North