Mobile phones could take place of cash for payment

25 February 2005
Coins and banknotes could be a thing of the past with the new Radio Frequency ID (RFID) contactless payment systems allowing users to pay by
waving a small object such as a credit card, mobile phone or key ring over a reader terminal.

Market research company ABI Research claims that 2005 will see sharp increase in the number of RFID payment opportunities for customers.

The analysts see small, frequent transactions as the ideal forum for RFID payment.

"As consumers continue to use card-based transactions for smaller, traditionally cash-based purchases, contactless payment capabilities make
more sense, especially for card issuers looking to increase customer loyalty and convenience," Erik Michielsen, director of RFID and ubiquitous wireless research at ABI Research, told vnunet.com.

Fast-food restaurants are one example of a venue where RFID transactions will be convenient.

McDonalds is expecting to introduce MasterCard paypass contactless systems in all its North American outlets by the end of the year.

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