LONDON — Operators from around the world have renewed their call for handset makers to incorporate full NFC functionality, including the standardized Single Wire Protocol Near Field Communications interface, into their models from the middle of next year to speed the uptake of contactless payments.
Working through the auspices of the GSM Association (GSMA), the operators say the Pay-Buy-Mobile initiative needs a big push, and have thrown their weight behind the European Telecommunications Standards Institute (ETSI) endorsed SWP standard to provide the interface between the SIM card and the embedded NFC chipset within the handset.
The NFC chip, from companies such as NXP Semiconductors and STMicroelectronics, can communicate with existing contactless readers to deliver a wide range of secure, interoperable and transparent services, such as credit and debit payments.
The GSMA says several operator trials have already demonstrated that consumers can safely use the technology.
Trials are underway across eight countries involving nine mobile operators. Further pilots are planned across 14 countries by 15 mobile operators.
For instance, seven banks and four mobile operators " including Orange and SFR - involved in the "Payez Mobile" trial in France have announced the results of trials conducted with almost 500 sales outlets and nearly 1000 triallists. Over 90 percent of triallists said they found contactless mobile payment convenient, fast, and easy to use.
And in Taiwan, in a trial of over 200 users, FarEasTone found that 90 percent of people felt positive toward to the service, with 80 percent saying they were satisfied that the service is secure.
Last month, industry analyst Juniper Research said that while the mobile payments market is currently dominated by purchases of digital content such as ringtones, music and games, it will in future be driven by users transferring money and using NFC to make purchases.
The researchers said that mobile money transfer and NFC transactions are predicted to account for 50 per cent of the global mobile payment market by 2013.
The Pay-Buy-Mobile initiative builds on the infrastructure of the major credit card companies, which have developed specifications to ensure global interoperability between contactless chip cards and point of sale terminals, regardless of manufacturer, the financial institution and location of transaction.
The main phone makers that already have or are developing NFC-enabled phones include Nokia, LG, Motorola, Samsung and Sagem.
Gemalto, G&D and KEBT are among the SIM card suppliers supporting NFC-enabled mobile payment services.
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