Interesting Article: Death of the Payments Terminal?

The article from Mobile Payments Today below, describes the limitations of the traditional terminal and how it will soon be replaced by more nimble devices, such as the smartphone. 

Essentially, the author argues that it is not hardware limitations that will kill off the terminal, but software limitations.  Entrepreneurs and merchants will want to write custom payment applications for niche uses.  This is not possible with the current terminal setup, but can easily be implemented with a simple smartphone.

So, what would be the broader implications for merchant acquirers and processors?  Clearly, as these devices become lower-cost and run on standard platforms, a number of the traditional barriers to entry will be lowered, and as innovation ramps up, competition within the industry will increase. 

http://www.mobilepaymentstoday.com/blog/5515/Prognosis-terminal-Will-mobile-payments-kill-the-credit-card-terminal?rc_id=400