he rapidly expanding world of contactless payments has taken another step forward. In December 2005, leaders in payments, contactless and mobile solutions joined forces to test near field communication (NFC) technology at Atlanta's Philips Arena. It was the first large-scale test of its kind.

The trial allowed Atlanta Hawks and Thrashers season ticket holders to pay for purchases at concession stands and access mobile content from different locations in the arena using their cell phones. Requirements for participating were that they already have JPMorgan Chase & Co.-issued Visa U.S.A. credit cards and Nokia 3220 phones backed by Cingular Wireless. When signing up, they had their phones equipped with a Philips' NFC semiconductor chip and ViVOtech payment software. (ViVOtech is a provider of contactless payment solutions.)

NFC is a radio frequency identification-based technology being adopted for the mobile phone and electronic payment environment. It allows electronic consumer devices (e.g., a cell phone and contactless card reader) to communicate. Unlike the wireless communication protocol Bluetooth, no code is necessary for the devices to communicate.

An NFC-enabled phone is used to make payments in much the same way as the contactless "chip" cards that are being rolled out in the United States, such as with MasterCard International's PayPass program, said Mohammad Khan, ViVOtech founder and President.

Consumers simply wave their phones (like they would their cards) near a secure terminal. But more is needed than a contactless reader and NFC-enabled phone. "There must be an application that is compatible with MasterCard's PayPass and [contactless programs from] Visa and American Express," Khan said.

ViVOtech has developed software that works with the contactless programs of all three card companies.

"NFC is growing quite a strong interest from the payments industry as well as from the cell phone providers," Khan said, adding that multiple trials in the United States are being planned for the coming months and will involve additional card issuers and brands and cell phone service providers and manufacturers.