how about just a vending machine that accepts credit/debit cards?

not sure why someone would want to use their phone to get something out of a vending machine. I wouldn't use it, but that's just me. Possibly if a machine took a debit card - but I do also realize that there are transaction fees for a merchant to accept credit cards.. so that would / could possibly jack up the price of the merchandise in the vending machine.

Isn't this being done in Japan already? The US is so far behind in cell phone technologies.

Yes this has been done. It is here in the US to but kind of hard to find.

Good idea, there are some big players already doing it.
http://www.engadget....ing-machines-in-u-k/

this is being done in several parts of the world.
paying by cellphone (or any phone) has problems, because
the telcos take 40% of the 1-900 fees, as there is a very high default rate. Other micropayment (or no micro) would require pretty high end phones like BBs or iPhones to make a paypal or bank transaction.. Better to use top-up RF-IF or smart cards like Monex, but then this isn't universal...
That leaves credit cards at 4-5% fee rate PLUS about 1$ per transaction charge to the VENDOR. that means your 50c can of pop ends up costing 2$.

Thanks for detailed information and analysis.

I understand what you mean! i would like that too, say your walking down the street and your thirsty as hell, you have no money, just your phone and a few other basic items, you find a "Smart Vendor" and you simply type in the buying number that is on it onto the mobile phone and the name/or number of the drink you want, send the text. your billed £1 or *in us* $2 to your phone and you then get a text with a code that you key into the vender to get your drink!!
mm i like the idea i would have voted on it too if i could have lol

I like the solution proposed by simrak. SMS text message to do the transaction, bill the transaction direct to your phone bill, just like voting for american idol. Probably 90% of celphones on the street today could use this functionality as is.

It is very common here in Israel too. You can pay by cash, credit card or mobile. besides vending machines i think it works also on gas stations.

you should check out an idea listed on ideastox called the baby vending machine its very similar to your idea.

This ideas is already in play. The telco's and other players are trying to figure out how to get into the payments systems.... the big banks have a lock on it right now, but that could all change, especially for small transactions from machines that dispense thing.... next you will use the phone or other device at other retail locations.

I think this idea exist in S.E. Asia. They can dispense Coca Cola from vending machines and people pay by handphone.