In a move aimed at fast-tracking its Pay-Buy-Mobile initiative,
mobile network industry body the GSM Association (GSMA) has called
for all new mobile devices to be equipped with near-field
communication (NFC) contactless payments functionality from
mid-2009.

From a technology perspective the GSMA’s call would require
manufacturers to adopt the single-wire protocol (SWP) standard to
provide the interface between the universal integrated circuit card
which incorporates three key applications including the SIM card
and the embedded NFC chipset in the handset.

Developed by Netherlands digital security specialist Gemalto,
the SWP standard is endorsed by the European Telecommunications
Standards Institute.

From a logistical perspective the challenge will be to equip the
vast number of mobile phones produced each year. Indicative of the
scale of the challenge, 305 million new phones were sold in the
second quarter of 2008, according to research firm Gartner.

Of the total 124.4 million were sold in Asia, 44.2 million in
North America, 56 million in Africa, Eastern Europe and the Middle
East, 42 million in Western Europe and 38.5 million in Latin
America.

“There is no doubt that there is a huge latent demand for a
large variety of mobile transaction services, of which there is
universal interest in proximity payments, as trials across the
world have already shown,” said, the GSMA’s CEO of the GSMA, Rob
Conway. His view is backed by overwhelmingly positive results from
trials run by nine mobile network operators (MNO) in eight
countries.

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One of the strongest endorsements of the GSMA’s view came from
Mung-Ki Woo, vice-president of payment and contactless at French
MNO Orange.

“Orange has run trials in France, Spain and the UK which show a
consistent appeal to consumers in all countries for SIM-based,
operator-managed, mobile NFC services,” said Woo. “For Orange, mass
deployment is now mainly dependent on handset manufacturers
providing a large range of adequate handsets.”