Talks under way to use mobile phones as debit cards

MOBILE phones will soon be heard ringing at the tills as plans are finalised so that they can be used as debit cards.

Discussions are taking place which will see Irish banks offer technology which would be placed in mobiles so that owners can pay for small purchases.

It hoped that the technology will replace cash for small purchases.

Representatives from Visa Europe are in Dublin this week to meet with Irish banks with a view to bringing this technology to Ireland.

It is hoping the plans will be finalised by 2011.

Wireless technology called Near Field Communication, which has been endorsed by Sony and Nokia will be integrated into mobile phones to enable owners to make purchases.

Visa Europe is also putting in place plans to introduce “contactless” debit cards which would act like swipe cards for purchases under €20.

Visa said the swipe cards will be ideal for use in fast food restaurants, convenience stores and transport terminals. Customers will also be able to use them at vending machines and parking meters.

According to Visa Europe retailers and consumers have traditionally resisted using payment cards for low value transactions.

Users will be permitted to use the card for payments of €20 to €60 before having to use the chip and pin capability of the card.

Country manager with Visa Europe, Marc O’Brien hopes that Ireland will one day become a “cashless society”.

“There are many hidden costs of cash. It costs €1 billion a year to manage cash in Ireland because the money needs to be printed and stored,” he said.

Visa said the spend on credit cards in Ireland was down 8% last year but the number of transactions was similar to 2008.

It said there has been “strong growth” in online shopping in Ireland.

Mr O’Brien said Visa Europe is also keen to work with the Irish government to establish ways to driving down the government’s costs.

In Britain Barclays and mobile phone network Orange have already teamed up to introduce the contactless credit card.

More than 20,000 retailers have installed the contactless pay points in their stores in Britain and there are five million of these cards in use.

For every £1 (€1.15) spent customers earn an Orange Credit Card reward point which can used in stores or donated to charity.