Mobiles to Morph Into Credit Cards Soon

Credit card payment system, Visa, has launched a global system, to make payments via mobile phones, by swiping a mobile phone over a reader, in place of a credit card. Simultaneously, at the CES, Nokia announced the world's first fully integrated, commercial Near Field Communication (NFC) handset, the Nokia 6131 NFC to allow monetary transactions.

The Nokia 6131 NFC is equipped with NFC technology, developed by former Philips chip unit NXP and Sony, and is already widely used in public transport access cards. Users of Nokia 6131 NFC will be able to pay for groceries and other purchases by simply swiping a phone over a reader that electronically communicates with a microchip on the phone. Phone owners are then required to push a button, to confirm the purchase. Moreover, the NFC-enabled advertising poster or informational kiosk can automatically link the user to interactive Internet based information, open an audio file, or download new content directly to the handset. Moreover, an extra layer of security is enabled when making contactless payments via a password, unlike a card or tag, which can be used by whoever has it in their possession.

Juha Kokkonen, director of Mobile Experiences for Nokia's Mobile Phones business said, "At CES there are dozens of potential use cases for the Nokia 6131 NFC phone. Instead of carrying a badge for entry, a tap of my phone could authorize my admittance to the exhibition, access to product information could be achieved by touching my phone on a product display, making carrying brochures around the show floor obsolete, and instead of heading to the ATM machine on a daily basis, coffee, sodas and hot dogs could be purchased using an NFC-enabled phone. In a trade show environment like CES, one of my favorite applications is using NFC-enabled business cards. Instead of going home with a pocket full of cards that I have to scan or hand type into my computer, I can simply touch the card, and I have all of the contact information right in my phone."

The Nokia 6131 NFC phone is expected to be available in select markets during the 1st quarter of 2007 for approximately $340 (260 Euros) before taxes and subsidies.

The new platform by Visa is aimed at fostering greater collaboration between the financial services and mobile telecommunications sectors for the delivery of mobile payment applications. The initial version of the mobile payment platform, offers contactless mobile payment, personalization over mobile telephony networks, coupons and direct marketing. Other versions of the platform, to be made available later in the year, will include remote payment, also using mobile telephony networks and person-to-person payment.

Visa will use global technology standards by groups such as the Mobile Payment Forum, from the world's major credit card companies, telecoms operators, chip makers and handset vendors. Gordon Cooper, Regional Head of Mobile Payment, Visa International Asia Pacific said, "Visa has long realized the importance of the mobile channel to the future of payments and as a medium to deliver consumer services. The launch of the mobile platform is a significant industry milestone because it will enable innovative trials and go-to-market strategies for mobile payment services globally."