It's Your Call: Do Lunch By Phone

The Age

Thursday August 28, 2008

Vanessa O'Shaughnessy, With Jesse Hogan

MOBILE phones can access the internet, play tunes - and now be used to pay for lunch.

Using staff as guinea pigs, National Australia Bank, Telstra and Visa have launched a trial of their new contactless mobile payments system.

Between 150 and 200 staff at the companies' Docklands offices will be issued with specially adapted mobile phones that will allow them to pay for goods worth up to $35 with a single swipe.

NAB spokesman Anthony Wheaton, who will participate in the trial, said it was best suited for small transactions, such as a coffee or lunch.

The system would save consumers time and save them the trouble of lugging their wallets about, but it would also make it easier for retailers to serve customers, improving speed of service, he said.

Twelve Docklands retailers have agreed to trial the system, which requires the installation of a special credit card reader.

The "contactless" system works by using "near field communication" (NFC) technology, a wireless technology that allows electronic devices to talk to one another.

A study conducted by telecommunications research group Juniper last month found that early adopters of new technology would likely start buying NFC devices next year.

By 2013, it predicted one in five phones would carry the new technology.

However, Telstra group managing director for enterprise and government David Thodey acknowledged the need for a new phone might discourage some customers. Lack of handset capability would be "one of the factors in the take-up," he said.

Other banks, such as HSBC, are already marketing contactless credit cards, that will allow customers to swipe rather than sign for their purchases, or enter a personal identification number.

VISA general manager for Australia and New Zealand Chris Clark said contactless technology would make credit card transactions two to three times quicker they are now. -- With JESSE HOGAN

Link

? To see Telstra's description of contactless mobile payments, go to tinyurl.com/5f1krh

© 2008 The Age

Back to News Index | Back to Home