Cardline Global  |  Thursday, April 30, 2009

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The three major wireless carriers in France and the city of Nice plan to test a mobile phone payment service for public transit and other purchases.

City officials in Nice, France's fifth-largest city, plan to announce the project by the end of next month. France Telecom-Orange, SFR and Bouygues Telecom expect it to go live in the second quarter of next year.

The carriers expect to offer 3,000 phones equipped with near-field communication chips through their Nice stores. Users will be able to tap the phones at contactless readers to board buses and possibly trams. The carriers are considering other services, such as sending coupons to users' phones.

At least one French bank and several major merchants will likely participate in the test, organizers said, though none have signed on yet. The project could lead to similar projects in other cities.

French carriers, banks, transit agencies and merchants are working to promote standards and business rules for mobile payments, and government officials have said they might fund other projects.

Payment companies and phone carriers are testing or offering mobile services around the world. This month Visa Inc. announced the commercial availability of a handset with NFC capabilities in Malaysia.

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