- Vodafone (NASDAQ:VOD) is developing a new mobile payments service with Visa (NYSE:V) which will allow for contactless payments via SIM cards embedded with NFC technology. The new service will be catered to users in the U.K., having previously introduced similar services in Italy, Germany, Spain and the Netherlands.
- Customers will need to swap SIMs for NFC-enabled versions and have a compatible handset. The app will only be available on Android smartphones.
- Launching the service later this year, Vodafone will probably be beaten to the market by Apple, which is expected to integrate mobile payments into its new iPhone due to be unveiled this week.
- Usage will be restricted to payments below £25 for regulatory reasons, although the company hopes to introduce a PIN-protected way to make larger payments in the future.