Nokia and Visa have joined forces to speed the evolution of handsets into mobile wallets.
The world's leading handset company and the world's biggest credit card payment system are collaborating to put a chip into a phone that can be swiped like a regular card. The user can confirm the purchase by pushing a button and the deal is completed.Obviously this could have a big impact on the high street consumer market. However, future versions could offer remote payment using the same technology, which could prove a major boon for the downloadable mobile content market.
The method will allow users to make mobile contactless payments, person-to-person payments, and use mobile coupons. They will also be able to control their payment accounts and funds from their mobiles.
The two companies said the phones will have a Near Field Communication (NFC) chip embedded into the phone which will make contact with the reader when swiped over it. Developed by former Philips chip unit NXP and Sony, this technology is used widely in public transport access cards.
The technology has been already been trialled by Visa in the US and Malaysia. "Visa has long realised the importance of the mobile channel to the future of payments and as a medium to deliver consumer services," said Patrick Gauthier, senior vice president for innovation at Visa International.
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"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."
The m-wallet has yet to take off in the West despite faring extremely well in the Far East - especially Japan, where DoCoMo's Felica system is widely used.
