New trials by Barclays and a number of US companies allow customers to use smartphones to buy products and services.

Barclays has joined forces with AT&T, Verizon and T-Mobile to test out new payment technology using smartphones such as Blackberries and iPhones. The Technology uses an embedding radio frequency identification tag inside smartphones that links to consumers’ bank accounts. It is understood that Barclays would help to manage the accounts themselves.

The technology has trailed and failed in the past by Visa and Mastercard.

Despite none of the companies involved confirming its existance, successful trials would lead to a significant shift in the way money changes hands. This could potentially lead to the end of credit cards.

According to industry research house Nilson Report, there were 576.4m credit cards in circulation in the US at the end of 2009, with the average number of cards held standing at 3.5.