This article makes a lot of assumptions and is generally completely wrong.<p>"For one, apps require 3G connectivity in order to verify a transaction."<p>This is irrelevant at least with a system like the one we've developed (<a href="http://www.facecash.com" rel="nofollow">http://www.facecash.com</a>). First of all, you can pay with your paper barcode. Second of all, we've designed the app to work on devices with flaky connections, or no connection at all, like an iPod Touch outside of a wi-fi area. The merchant needs a connection, but you don't.<p>"So, the same middlemen will take their cuts for all the same reasons when we switch from credit cards to credit phones..."<p>Our system has no middlemen.<p>"Instead, MacPherson says, start-ups should continue focusing on areas where they can gain ground — municipal parking systems, public transportation, vending machines and the like — because all other attempts to disrupt the credit card status quo have failed miserably."<p>I wonder how much MacPherson gets paid, directly or indirectly, by the credit card companies in his position as "IDC Financial Insights practice director for payments and security" to scare away competitors?