Mobile phones to replace credit cards

by Gill Montia

Story link: Mobile phones to replace credit cards

Apacs, the UK body that represents firms involved in payment services, is predicting that Britons will be using their mobile phones to make payments and transfers in the very near future.

Only weeks after the roll-out of its Faster Payments System, which can process certain transactions in one day, Apacs is drawing attention to Near Field Communication (NFC) technology.

The relatively new short-range wireless technology that can provide secure transactions is becoming increasingly accessible and Apacs believes it will eventually enable widespread use of the mobile phone in making cash transfers.

NFC has similarities with Bluetooth but is shorter range and apparently, easier to use.

Members of the NFC forum, which include Nokia, Visa and MasterCard, foresee a day consumers will be able to make purchases and even lock and unlock their homes using an NFC enabled mobile phone.

Meanwhile, British consumers appear to be putting their faith in hard cash; research from the British Retail Consortium shows that in the 12 months to April 2008 cash was used for 34% of retail spending compared with 32% in the previous 12 months.