GSMA calls for full NFC functionality by mid-2009

Global trade group the GSM Association is calling for full Near Field Communications functionality to be built into commercial mobile handsets beginning mid-2009 in an effort to accelerate adoption and deployment of mobile payment services. The GSMA also outlined its support for the European Telecommunications Standards Institute-endorsed "Single Wire Protocol" standard to provide the interface between SIM cards and the embedded NFC chipset within the device.

According to the GSMA, a series of operator trials launched under its "Pay-Buy-Mobile" initiative have demonstrated the potential for consumers with NFC-enabled handsets to efficiently and securely pay for goods and services in retail stores, restaurants and train stations. The trade group reports that NFC trials are underway across eight countries involving nine mobile operators, with additional pilots planned by 15 mobile operators across 14 countries.

Among ongoing trials, Taiwanese operator FarEasTone reports 80 percent of participants were satisfied the service is secure, and 40 percent said they would switch their monthly spending to a mobile credit card service. In France, a trial spanning seven banks and four mobile operators including Orange and SFR reports 90 percent of participants found contactless mobile payment convenient, fast, and easy to use, while more than 80 percent of merchants expressed appreciation for the speed and cutting-edge appeal of m-payment services.

For more on the GSMA's NFC support:
- read this release [1]

Related articles:
Forecast: 400 million mobile ticketing [2] users by 2013
Mobile payments [3] to exceed $300 billion by 2013