Then press enter: digital payment technology and the history of telephone interface

The internet and other digital networks in the U.S. (and beyond) remain essentially an upgrade of the national telephone network built by AT&T over the first half of the twentieth century, and digital payment remains tethered to telephony at the level of infrastructure. Telephone history also continues to inform digital payment at the level of interface. Debit card readers feature a keypad nearly identical to those introduced (also by AT&T) to the dialling public a half-century ago on touch-tone telephones. In this essay I highlight the development of the touch-tone keypad as a transformative payment technology. There have been three great leaps forward in the history of telephone interface: the dial, the keypad and the touch screen. Each corresponds to a period of technological transformation in the telephone industry and society more broadly: the rotary dial and automation, touch-tone keypads and digitization, and touch screens and computerization. The successful careers of the dial and the keypad, especially when read in tandem, suggest that touch screens will alter the everyday economics of retail payment even more radically than its predecessors. I also describe a broader trajectory of digital naturalization, whereby telephone numbers have proliferated into a personal identification number, passwords and a plethora of personalized information. Payments increasingly circulate today as subsets of personal information within the vast sea of big data. Payment apps are demonstrating a capacity to reorganize retail transactions on a scale as vast as any technology since the cash register. The history of retail payment finds the point of sale heading from the till into shoppers’ pockets. As a result, consumers are increasingly shouldering the costs of purchasing, maintaining, upgrading and securing the technology used for everyday transactions.