Nokia, the world's top handset producer, and Visa, the world's leading payment brand, has launched a global system to turn mobile phones into wallets for millions of customers.

Users can pay for their purchases by swiping a phone over a reader that electronically communicates with a microchip on the phone. Phone owners confirm the purchase with the push of a button and the money transfer is complete.

Consumer's payment credentials, such as debit and credit cards, are securely stored in the integrated smart card chip.

Users will also be able to manage their payment accounts and funds from their mobile devices, Visa said in a statement issued at the Consumer Electronics Show .

The wireless standard that will link mobile phones with payment systems in stores and elsewhere will be the Near Field Communication (NFC) chip.

NFC technology evolved from a combination of contactless identification (RFID) and interconnection technologies. NFC operates in the 13.56 MHz frequency range, over a distance of typically a few centimeters.

This NFC technology, developed by former Philips chip unit NXP and Sony is already widely used in public transport access cards.

Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce-the ability to conduct commerce anywhere, anytime, and any way.
Visa said its cards and payment systems currently generate more than $4 trillion in sales volume worldwide.

The initial version of the mobile payment platform launched this week offers contactless mobile payment, personalization over mobile telephony networks, coupons and direct marketing.

"This tiered launch approach enables Visa issuers and mobile industry partners to take advantage of near-term opportunities in specific markets and consumer segments now," Visa said.

written by Cristian L.