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Your Mobile Phone as a Credit Card

Techstination feature for Wednesday, May 9, 2007

Your mobile phone, as a credit card. Bloomberg Boot Camp, a report on today's technology. It's not available yet…in the U.S. at least…but it's on its way. The ability to use your mobile phone….instead of a credit card….to shop. Kyocera Wireless has partnered with Visa to demonstrate the technology…and Kyocera's Jon Chier says….basically you just wave the handset, equipped with what's called a near field communications chip, in front of a contactless payment terminal….

"Almost like you would a contactless credit card. We're working with Visa, the big credit card company. Visa has about 30 thousand locations around the country, and that number is growing significantly as they get through trials, where you can take a phone like this and do contactless payment, where you wave the phone in front of a sensor and it can automatically debit money from your phone just like you would use a debit card."

Japan's NTTDoCoMo announced a mobile phone payment system three years ago. The company has partnered with McDonalds….to give special promotions to mobile users who choose to pay for their burgers…with their handsets. In London….mobile phones can be used by drivers….to pay for parking. Instead of chip in the handset….payment is sent through a phone call or text message. The technology is also being tried out in Amsterdam, France and Finland. You can find us on the Web with an archive of reports, at Bloomberg Boot Camp, I'm Fred Fishkin.