Cell Phones Double as Credit Cards

Motorola will test handsets that include wireless payment functions.

Sumner Lemon, IDG News Service

Motorola is the latest company to move towards adding a payment function to its line of cell phones, the company announced this week.

The payment function will be based on Near-Field Communication (NFC) technology. NFC is a short-range wireless technology that can be used for a variety of functions, such as payment, identification, and communication.

When used for communications, NFC can allow a handset to wirelessly transfer a digital photograph to an NFC-enabled television or download digital music files from a computer.

The technology is also used in contactless smart cards for payment and transport systems in Japan, Singapore, and Hong Kong.

Put to the Test

Motorola plans to begin trials of NFC-enabled phones in the U.S. later this year, the company says. The phones will be used with MasterCard International's PayPass payment service, it says. Motorola did not specify where the trials will take place.

NFC-based payment functions have already been announced by several handset vendors, including Panasonic Mobile Communications, Sharp, and Fujitsu. They will make products compatible with a payment system developed by Felica Networks, a joint venture between NTT DoCoMo and Sony.

Nokia and Samsung Electronics have also announced plans to incorporate NFC-based payment functions in their respective handset lines.