Major Mobile Commerce Trials Announced

A group of major m-commerce companies announced a large-scale U.S. trial last week to include contactless payment, mobile content and premium arena services at Philips Arena in Atlanta, Georgia. The companies claim the trial will be the first large-scale test of next-generation mobile-phone applications in North America. The grouping includes Chase, Cingular Wireless, Nokia, Philips, Visa USA and others. The contactless payment functionality will be based on Near Field Communication (NFC) technology first developed by Sony and Philips. Other NFC trials are underway in Germany and France.

Wireless Watchers will know that the Sony/Philips NFC technology is also powering the super-successful “FeliCa”-branded mobile contactless payment services in Japan and has been adopted by NTT DoCoMo, KDDI and Vodafone as the de facto market standard for m-commerce, e-wallets, transportation and other peer-to-peer data transfer services. NFC was first deployed in the Octopus card in Hong Kong in 1997 and the first mobile handset trial ran in Japan in December 2003. Today, over 7 million FeliCa-enabled phones have already been sold by DoCoMo alone.

One might think the two-year jump on deployment and commercial experience, not to mention brand equity, in Japan would motivate Sony to transplant an obvious success story from Tokyo to markets elsewhere. Instead, it looks like the wheel is being reinvented all over again.