by Joseph Kenny | 05/12/09

Did you know it is now possible to use your cell phone like a credit card?

For some card users this is a present reality. Recently, Visa has been developing a technology that will enable you to use a special sticker equipped with an R.F.I.D tag that lets you pass it over a specially designed terminal to make purchases.

The new cell phone payment system is currently being tested in Malaysia, but soon it will be expanded to many other countries, though it may not be widespread for a few years.

The Visa service is not entirely unique. For instance, in Japan a phone payment program has already been in use for some time. Both use a chip implanted on the cell phone to communicate with a separate payment terminal. Yet, Visa has made some advancement on the technology. Known as "near communications", it is a global telephone standard.

Essentially, you will obtain a phone with this near communications chip implanted in it. Then you can connect with your bank or other financial institution via your cell phone's mobile internet service so you can establish a payment protocol. Once this is accomplished, all you will have do is wave the phone at the merchant terminal.

The basics of this R.F.I.D payment system have already been used in the United States in the form of a tag attached to the cards themselves or on smaller key fobs. You do not have to swipe card's magnetic strip but can simply wave it across the terminal. Applying this technology would be an addition to the present system.

There are some added aspects of security with using a cell phone like a credit card. One that has come up often is the fact you can create a password of for the payment option on your cell phones, effectively limiting the use to those who have access. This would go along way at reducing the instances of identity theft and credit card fraud.

As the system is explored and its viability is tested around the globe, don't be surprised to see more people using cell phones to may purchases.