Banks and phone firms link up to back payment by mobile

The Netherlands three biggest banks and three biggest mobile operators have signed a letter of intent outlining plans to work on a system allowing people to pay for goods and services by mobile phone.

The six firms hope that by 2012 people will be able to hold their phones to a shop terminal and automatically make payments using what is known as ‘near field communications’ technology.
The project involves ING, Rabobank and state-owned ABN Amro together with KPN, Vodafone and T-Mobile, owned by Deutsche Telekom.
The six companies are setting up a joint venture to develop the system, they said in a statement.
NFC transmits over a few centimetres, rather than the mobile network while secure payment software will be on the phone’s SIM card.
According to news agency Reuters, the system is not new although its use has been limited to Japan and some testing by banks in the US.