The telco's worry me more than anything in terms of competition in the payments space. They have the prime advantage of having a gizmo in the hands of every waking adult in the world, that has communication and computer smarts built in. This is a heady combination.

Digital World Tokyo – Gadgets, Gear and Good Things from Japan…

…. a verification-free credit payment option to the mix for small amounts. The twin advantages of speed and simplicity could well push cellphone credit payments past the tipping point and into the big time.
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The iD system is to be for touch-and-go payments what Visa and MasterCard are for plastic cards. Some Japanese credit card companies have already started offering iD-compatible cards to customers. 

And this is just the start. The next phase turns the cell phone into a contactless credit card.

In May, the full DCMX service will launch, requiring a more complex application and providing users with a conventional credit card in addition to the cellphone payment system. The service will offer Visa and MasterCard credit cards and a credit line of ¥200,000 per month.