First Data Corp. is working with the mobile technology vendor Tyfone Inc. to develop a payments component that fits on a card consumers can install in their phones' memory slots.

First Data, an Atlanta unit of Kohlberg Kravis Roberts & Co., said Tuesday that it plans to test the cards this year and offer them through banks, retailers and wireless carriers before yearend, under the name SideTap.

The SideTap cards will enable users to tap their phones against a contactless reader to make purchases at the point of sale.

The cards also can support loyalty applications and prepaid cards. They fit into memory slots that accept standard MicroSD cards.

"We see the MicroSD as another stepping-stone in the evolution to near-field communication and contactless payment inside the handset," said Dom Morea, First Data's division manager of mobile commerce solutions.

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