Vodafone turns smartphones into a direct debit card

A number of retailers in the Netherlands have begun experimenting with a system to allow people to pay for goods and services using their smartphone.

The Vodafone Smartpas system is contact-free and works on the basis of a special NFC chip in the phone. Many phones already have the chip as standard but iPhone users need a special sticker which includes it to use the new payment system.

The system has been developed with Visa. Payment is made by holding the phone close to the pin terminal and a special pincode is needed for payments of over €25.

Many shops in railway stations are using the new system as is the Lidl supermarket and Ikea furniture store group, Vodafone said.

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