Swipe your phone to pay for shopping

Posted on 19 Nov 2008 at 15:42

You may soon be able to pay for goods and services in retail outlets with your mobile phone, as handset manufacturers were today urged to incorporate Near Field Communication (NFC) technology next year.

The technology allows you to use your phone to securely pay for products in retail outlets, such as shops and restaurants.

(GSMA), the global trade group for the mobile industry called for the 'single wire protocol' interface to be built into commercially available mobile handsets from mid-2009. The organisation said it supports the need for the standard to provide the interface between the SIM card and the embedded NFC chipset within the handset.

The NFC chip can communicate with contactless readers to deliver a range of services, such as credit and debit payments.

"There is no doubt that there is a huge latent demand for a large variety of mobile transaction services, of which there is universal interest in proximity payments, as trials across the world have already shown," said Rob Conway, CEO of the GSMA.

"We are committed to ensuring that mobile payment services are delivered as efficiently and cost effectively as possible. But this will require device manufacturers to make sure that the vast majority of commercially available handsets incorporate the Single Wire Protocol and Near Field Communications features as standard."

According to GSMA, its call for NFC-equipped handsets is supported by recent operator trial results, which indicate a growing consumer demand for mobile payment services.

Trials are underway across eight countries involving nine mobile operators as part of the GSMA's Pay-Buy-Mobile initiative. Further pilots are planned across 14 countries by 15 mobile operators.

Author: Robert Jaques

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