World's first NFC enabled mobile product for contactless payment

February 9, 2005

Nokia today introduced a new product for secure mobile contactless payments and ticketing. The world's first Near Field Communications (NFC) product for payment and ticketing will be an enhanced version of the already announced Nokia NFC shell for Nokia 3220 phone. It delivers the promise of NFC based services, covering service discovery, payment and ticketing. The Nokia NFC shell will provide the first opportunity for consumers, mobile operators and service providers to benefit from an easy, touch-based access to services and content.

With the Nokia NFC shell for payment and ticketing, the consumer can conduct local transactions with a mobile phone, simply by touching a point of sales device or ticket gate. Consumer's payment credentials, such as debit and credit cards, and transport tickets are securely stored in the integrated smart card chip of the Nokia NFC shell. The Nokia NFC shell for payment and ticketing is compliant and interoperable with contactless smart card infrastructure. Hence additional investments are not required.

"Visa is always looking for exciting, first-rate innovations that advance the field of contactless payment and we are pleased to join forces with Nokia in this pioneering effort," said Jim Lee, senior vice president, Product Technology and Standards, Visa International. "The development of the Nokia NFC shell serves as a natural extension of Visa's contactless card and phone programs around the world. Moreover, it aligns well with Visa's commitment to enabling payments anywhere, anytime, through any device."

"We are pleased that Nokia is developing technology that will support MasterCard® PayPass(TM) contactless payment technology in a mobile handset. This is a natural extension to the successful PayPass market trial that we carried out together in Dallas, Texas in 2003. MasterCard's research has consistently shown that consumers are interested in using their mobile phones for making convenient payments in the future," said Richard Fletcher, senior vice president, Mobile and Wireless Centre of Excellence, MasterCard International.

In the first live NFC-based public transport ticketing showcase of its kind, Nokia 3220 mobile phones will be tested within the local bus network in the city of Hanau, near Frankfurt, Germany. For the trial Nokia is collaborating with the regional public transport authority, the Rhein-Main-Verkehrsverbund (RMV). The mobile phone offers customers a quick and convenient way to use the public transport network. "NFC enables us to securely store and electronically control tickets in mobile phones. To us another important feature of the project is, that the NFC enabled phones are compatible with the contactless smart card infrastructure already installed in Hanau," said Peter Preuss, Head of Strategy and Innovation at RMV.

"Secure payment and ticketing functionalities add true value to consumers everyday life," said Petri Vesikivi, Director, Nokia Ventures Organization. "With this new innovative product, mobile operators can provide payment and ticketing applications to the phone together with service providers such as banks and transportation companies. We are excited about this opportunity and keen on starting first commercial deployments."

The Nokia NFC shell for payment and ticketing will be available in mid 2005. The product will be distributed to consumers through operators, and as such it will not be generally available as a traditional enhancement.