One thing i’ll say for “the dismal science” of economics — i love it’s ability to embrace and witness aspects of destruction and disruption. That it is what it is, and not cling to the past such that it blurs the ability to be today. In this spirit, I appreciated the following post (h/t nakedcapitalism) this morning for a dose of some creative destruction:
The [AT&T and Verizon] partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with Discover Financial Services and Barclays Plc to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone….
The service, similar to those already available in Japan, Turkey and the U.K., would use contactless technology to complete purchases in stores. They’d be processed through Discover’s payments network, currently the fourth-biggest behind Visa, MasterCard and American Express Co. Barclays would be the bank helping to manage the accounts, said the people, who requested anonymity because of confidentiality agreements.
Because, really who wouldn’t want to watch some titans of Vzon and the behemoth formerly known as BabyBells go at Visa and Mastercard. Just for the sake of storytelling, it is fascinating to observe a moment where Verizon is an underdog. And is willing to risk failure by going after the bread-and-butter niche of the Plastic.
And the post closes with this ringer from Crone Consulting:
“A mobile device is online, real-time interactivity that changes the customer relationship,” he said. “A card is dumb.”
FYI, who is Crone? According to the LLC’s homepage:
for nearly 30 years, Crone Consulting, LLC, helps companies unlock the power of electronic payments to create strategic advantage in the financial services marketplace.
And, if you are unfamiliar with the phrase of “creative destruction” here is how wikipedia summarizes it:
an economic theory of innovation and progress…. In Capitalism, Socialism and Democracy, Schumpeter popularized and used the term to describe the process of transformation that accompanies radical innovation.