Mobile Payment, Smartphone | featured news

CNN's Tom Foreman reports on Dwolla, an app that delivers fast and inexpensive electronic cash transfers all over the U.S.

Mobile money may seem like a hot concept, but consumers aren't warming to it. At the world's largest cellphone trade show, here in Barcelona this week, the 70,000 attendees are encouraged to use their cellphones -instead their keycards- to get past the turnstiles at the door. But very few people took the chance to do that. The process of setting up the phone to act as a keycard proved too much of a hassle.

As technology enables smartphones to function like cash, lawmakers seek answers to questions about competing systems for mobile payments and their security and privacy. When Abraham Lincoln allowed the Treasury to print money for the first time in the depths of the Civil War, it was a major innovation born of a pressing reality.

On Wednesday, Microsoft announced features of its upcoming Windows Phone 8 mobile OS, including built-in turn-by-turn navigation, a secure "wallet" system, a new, faster browser and live tiles that can be custom sized to better fit the Start screen. Perhaps most importantly, the company revealed that the next wave of Windows Phones will really be Windows Phones, because when Windows Phone 8 comes out, it will share a "common core" of software with Windows 8.

This is a guest post by Caribou Honig, a partner with QED Investors in Alexandria, Va. In a prior post on the topic of mobile payments, I made the case that the mobile wallet will become the foundation of a new, disruptive "payment Operating System."