Freeddom says it can allow retail stores, telecommunication companies, and banks to turn consumers’ phones into credit cards. Merchants enter the purchase into their own phone or their own point-of-sale device, then the customers are asked to enter their personal identification numbers (PIN). No new hardware is required.
The company has already built a business in Brazil, and is launching its US efforts at DEMOfall 09, the emerging technology conference co-produced by VentureBeat. Its on-stage presentation hewed pretty close to the example above, but Freeddom offered more details about why this system makes sense. On the retailer’s side, they can create their own credit card, rather than being subject to MasterCard and Visa (and their fees), and they can also send relevant promotions to customers at the time of purchase. Meanwhile, consumers can carry around as many credit cards as they want, on their phones, without overstuffing their wallet.
The company has raised more than $1 million in seed funding.
