Cingular turns cell phones into wallets in N.Y. trial

ZDNet reports the mobile operator said Thursday that it’s teaming with cell phone maker Nokia and financial institutions Citigroup and MasterCard Worldwide to trial new phones that have MasterCard PayPass contactless payment capability.

The trial, which is expected to last three to six months, will help the companies evaluate the speed and convenience of the “tap and go” payments using mobile phones.

A group of Citi MasterCard cardholders with Cingular Wireless accounts have already been selected to participate in the trial. The participants will receive a Nokia handset with “near-field communication” (NFC) technology and the MasterCard PayPass payment function built in. Using the phone, trial participants will be able to make purchases wherever MasterCard’s PayPass is accepted by simply holding their phone near the card reader. The payment is then deducted from the cell phone subscriber’s account.

MasterCard PayPass service is already being tested in New York City subway stations using plastic cards issued by Citibank. The cards can also be used at 1,000 Coca-Cola vending machines in Philadelphia. Other merchants such as McDonald’s and AMC movie theaters also accept the card, and in turn will accept the PayPass phones.

Alice Pretchet

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