Can you envision a world without swiping?

A Daily Finance article from AOL presents the scenario of how smartphone software could bump the swiping of credit and debit cards to the side, taking business away from card companies and banks, as well as hardware and security providers.

Writes Alex Salkever: "By definition, a smartphone is connected to a fast wireless data network of some sort. It can carry far more financial information than a magnetic stripe, and can be tricked out with far better transaction security than any credit card."

The article notes recent releases from Google (Nasdaq: GOOG) and start-up Square that allowed Android phones and Apple (Nasdaq: AAPL) iPhones, respectively, to enact transactions. It seems like a reduction in the use of swipe machines could benefit retailers and consumers at the expense of card companies including Visa (NYSE: V) and MasterCard (NYSE: MA) and banks that issue cards, such as Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo.

Let me know in the comments box below the pros and cons of smartphones becoming the MO for mobile transactions. Should card companies worry? Do you think retailers will really be off the hook for transaction fees, or will some other company muscle in for that piece of the pie?