[kgermino]

That was my first thought too but as I think about it storing the info in the cloud is probably better for me. Sure on a large scale if the company stores the data on your phone the data that company stores is decentralized; however look at it from an individual perspective my smartphone is an extremely centralized "life storage device." If someone gets your phone they get your contact list, your emails, text messages, calender, social network info, etc. Why add credit cards to the list?

Additionally if you keep everything on your phone you need to spend more effort making sure your phone is secure. If I keep my CC's on my phone I need to make sure my phone is as safe as my wallet, and anyone who sees my phone will know that they can take my phone and get my credit cards.

If the info is stored on the company's servers than they are responsible for keeping it secure. Given the value of the data they have security would (hopefully) be an integral part of the system. On top of that, if a breech does occur the company is responsible for anything that happens, and the odds of the criminal using my specific info is less than if someone took my phone.