The GSMA has called for full Near Field Communications (NFC) functionality to be built into commercially available handsets from mid-2009. Such a move would give a big boost to mobile payment services, it said. The Association’s board also announced its support for the ‘Single Wire Protocol’ (SWP) standard that defines the interface between a mobile phone’s SIM card and its embedded NFC chipset. It is the NFC chip which communicates with contactless readers so users can make financial transactions over short distances, for instance using a debit or credit card to buy small items in a convenience store or a ticket on public transport.

A number of mobile operators are already conducting trials of NFC services as part of the GSMA’s Pay-Buy-Mobile initiative. The GSMA claimed that the trials – being conducted by nine operators, including South Korea’s KTF, and Taiwan’s FarEastone, in eight countries – have already shown a growing consumer demand for mobile payment services. Further trials are planned by 15 operators in 14 countries. Encouraging results from Taiwan found that 90 percent of people felt positive toward the new service, whilst over 90 percent of triallists in France said they found contactless mobile payment convenient, fast and easy to use. This latest development follows issue of a detailed Device Requirement document by the GSMA in July to a wide range of vendors and suppliers in the Pay-Buy-Mobile ecosystem. The GSMA revealed that 37 key players responded, giving an understanding of the core requirements for any SWP/NFC device.