Motorola and MasterCard to trial contactless mobile payments
14 October 2004 | 6192 views | 0
Motorola is to conduct field trials of mobile phones embedded with MasterCard's contactless PayPass technology.
The PayPass phone will come equipped with Near Field Communications (NFC) technology, which will enable the device to run multiple proximity applications as well as payments. In addition, the phone can function as a contactless reader, paving the way for a variety of marketing and promotional applications.
Applications can be loaded into the secure area of the phone 'over the air', says Motorola, offering potential operational savings to card issuing financial institutions, as well as revenue opportunities to wireless network operators.
The handsets will incorporate a number of security features to protect financial data and to ensure secure financial transactions, adds the vendor.
Ron Hamma, vice president and director of enterprise business development, Motorola, says the phone has the potential to be lifestyle changing: "In essence your phone will become your wallet, key chain and your ID."
The phones are expected to be trialed by the end of this year in a variety of locations in the US.
Cell phone-based PayPass trials in Dallas with Nokia, AT&T Wireless and JPMorgan Chase showed payments by phone to be six seconds faster than those conducted via PayPass cards. Speed of payment is considered a valuable attribute in quick-pay locations like petrol stations, fast food restaurants and cinemas.