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All three major mobile operators in France, along with the city of Nice, have firmed up plans to launch a Near Field Communication "demonstration" project during which subscribers may tap their mobile phones to make payments, ride public transit and use other services. CardLine Global sister publication Cards&Payments has learned the mayor of Nice, France's fifth-largest city, will announce the project by the end of May. The mobile operators–France Telecom-Orange, SFR and Bouygues Telecom–will launch the service by the second quarter of 2010, sources say, calling the project more than a trial. The telecommunication companies initially will put a combined 3,000 phones on sale in their shops in Nice, enabling subscribers to tap them to pay at the point of sale and onboard buses and perhaps trams at a number of points in the city. Organizers likely will offer some other contactless services on the phones, such as mobile couponing. More than one French bank and some major merchants also may participate. One of the organizers describes the project as a "precommercial launch" of NFC, which could lead to rollouts in other major French cities. Unlike in other countries, French telcos, banks, transit operators and big retailers are using a coordinated approach to bring NFC to market. They have formed committees to work on standards and business rules for eventual rollouts. French government officials also are taking an interest in NFC and could fund other demonstration projects. It is unclear the type of support government officials in Nice will offer, but the city's mayor hopes to have Nice become known as an "NFC city," say sources. NFC is a short-range wireless technology touted by many as a way to bring mobile payment and ticketing to the masses. In most other countries, mobile operators are expected to form partnerships with a limited number of banks and other service providers for their first NFC launches. Earlier this month, Malaysia's largest mobile operator, Maxis Communications, along with one of the country's largest banks, Maybank, and Visa Inc. announced what they said was the first NFC mobile-payment commercial launch. Other NFC launches could occur by the end of this year, although, as in Malaysia, they will be small, especially because few NFC phones are available. French operators likely will make due with only one NFC phone model for the launch in Nice, say sources. They will store applications on SIM cards the telcos issue to subscribers. The mobile operators and other mobile-commerce players in France have considered other cities for demonstration projects, including Strasbourg, the site of an ongoing NFC payment trial several banks are backing.
