Phones have potential to make cashless payments

Mobile operators develop global NFC standard

Mobile phones could be used to make contactless and cashless payments following agreement among mobile operators on an approach to near field communication.

NFC is a wireless technology that enables tags inside phones to store information that could then be used as car keys, money, tickets and even travel cards.

Mobile phone companies representing 40 per cent of the global market are working together to determine a global NFC standard for phones.

Alex Sinclair, chief technology officer of the GSM Association, says interoperability and standardisation are the fundamental requirements for success of NFC.

‘It opens up a wide range of possibilities and we are committed to ensuring the mobile industry works together to realise its potential,’ he said.

NFC could enable people to purchase items, such as concert tickers, with the details held on the tag inside the handset. A device at the venue would then read the ticket details when passed over it.

The GSM Association, the global trade association for mobile network operators, is co-ordinating the initiative to develop a common standard for NFC technology.

One of its goals is to build on the secure billing and identity relationship operators have with customers through the SIM card, which is situated inside the handset and contains users’ unique profiles and information.

NFC has already been trialled by Manchester City Football Club (Computing, 24 August), but a common standard is necessary to encourage mass market adoption.

A total of 14 mobile network operators are working together to develop business cases and user requirements. These include Orange, Vodafone, 3, Bouygues Telecom, China Mobile, Cingular Wireless, KPN, Mobilkom Austria, SFR, SK Telecom, Telefonica Móviles España, Telenor, TeliaSonera, TIM.

Orange vice president of payment and contactless services Mung-Ki Woo says NFC is an extension of today’s mobile experience. A global standard would also prevent the fragmentation that different technology solutions would cause.

‘Extending the power of a mobile phone will simplify the lives of customers giving them the freedom to leave travel, payment, and other cards at home,’ said Woo.

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