December 15, 2005

Cingular Wireless is among a half-dozen technology and financial companies teaming on a contactless payment and content trial at Atlanta's Philips Arena.

JP Morgan Chase & Co., Nokia Corp., Royal Philips Electronics, Visa USA and VivOtech are also participating in the trial, which the companies claim is the first large-scale test of Near Field Communications technology in North America.

The effort allows Atlanta Thrashers and Hawks season ticket holders with Chase-issued Visa credit accounts to use their phones to pay at concession stands and mobile content kiosks throughout the arena.

NFC chips were embedded in Nokia 3220 mobile phones for the trial, and 150 contactless point of sale readers have been deployed at the stadium.

Atlanta Spirit L.L.C., parent company of the professional sports teams as well as the arena, is also participating.

"By 2010, we expect that over 50 percent of all mobile handsets will incorporate Near Field Communication chips to enable short-range, easy and secure transactions," said Erik Michielsen of market analyst firm ABI Research.

"As a result, consumers will be able to download content by simply holding their phone close to a poster or advertising billboard."

While wireless companies continue to try to establish a position in the value chain for micropayments-transactions involving a few dollars or less-several key factors have yet to be addressed.

Contactless payments through banks and credit card companies are just beginning to gain traction at convenience stores and gas stations, but it's unclear whether such efforts can also support mobile operators, handset manufacturers and others looking for a place at the table.

Source: RCR