System to pay bills with smartphones tested

August 2, 2010 1:50:29 PM PDT
The country's largest cell phone carriers hope consumers want to trade in their credit and debit cards for smartphones.

AT&T and Verizon are partnering with Discover Financial and Barclays to test a system that allows consumers to pay for items and services using their smartphones. T-Mobile has a minority stake in the new venture.

Consumers would wave their phones over special payment terminals instead of swiping their credit cards.

The system is being tested at stores in Atlanta and in three other cities.