Motorola M-Wallet cellphone payment system coming to US

Motorola plans to roll out a cellphone-wallet service in the US, according to reports in The Wall Street Journal. The service, to be known as the M-Wallet, won't be the first in the US; Cingular is testing a similar near-field communication service with Nokia in Atlanta, and Motorola itself announced a test service as far back as 2004. However, M-Wallet is likely to be the first such service to go national, and will compete head-to-head with other "swipeless" payment systems, such as MasterCard's PayPass. It's unclear at this point when Moto plans to roll out the service, which phones will support it, and, most importantly, which carriers will be involved. Moto says, however, that the M-Wallet chip will be available within six to nine months, and that the company is in discussions with carriers for rollout plans. Motorola also says that the service would be compatible with other manufacturers' devices, though they haven't said whether any other companies plan to participate.

[dimitri @ Feb 8th 2006 10:56AM]

What happens if your phone runs out of battery? can you still use it as a PayPass?

[austinkennethlee @ Feb 8th 2006 10:58AM]

So is this RFID? Reporting is kind of thin.

[ezkiel @ Feb 8th 2006 11:00AM]

Thats not a SILV in the shot is it?

If it is I have to reconsider and save some dough.

[TechBoard @ Feb 8th 2006 11:13AM]

I wish I could get excited about this, but mobile payment and smart wallet systems have never taken off before. Across Asia and Europe companies have been trying to crack this application for over a decade. With no success.

I would love to understand why Motorola is likely to be successful where so many have failed. Mobile phones as payment devices has to happen one day. I just wonder when and what the compelling application will be to trigger it.

[Paul @ Feb 8th 2006 11:45AM]

HOT! Now they can clone my cell and steal my financial information at the same time!

[rory @ Feb 8th 2006 1:37PM]

What phone is that a picture of? That thing is sweet looking!

[flamer's grill @ Feb 8th 2006 2:34PM]

Exactly, paul. Losing my cell phone would be traumatic enough; now, if it's stolen the thief would be able to drain my bank account.

I'll admit, I never use cash anymore, but when I use plastic I at least have to enter a pin number or sign. Why eliminate barriers of security for the sake of convenience? Is there really a market for this type of service, or are banks misinterpreting this entire thing?

Credit cards are insecure enough; I think I'll just leave it at that. I can't imagine this thing taking off anytime soon.

[kerry @ Feb 8th 2006 3:48PM]

I agree that keeping my credit/debit card information on my phone does not sound like a good idea, but if they could somehow integrate my RFID transit pass into my phone I'd be a seriously happy camper. I already have my phone in my pocket or in my hand when I'm approaching the train station turnstile, why not remove one layer of complexity and let me just wave that in front of the scanner, instead of digging in my bag for my wallet? I considered sticking my card to the back of my phone, but decided against it because I feared ruining one or both of them.

[brandon @ Feb 8th 2006 4:14PM]

I agree with flamer's grill. People still are hesitant in using credit cards on the Internet. Most people are not like us readers on Engadget. I think most people couldn't tell if a webpage is secure let alone a phone connection for payment.

[Jared @ Feb 8th 2006 5:04PM]

For a website designed for people into technology, you sure are all poo-pooing this a lot. I have a speedpass which is this technology, just on a keychain instead of in your cell. It's so convenient I actually find myself looking for exxon or mobil stations to gas up at.
Let me share a few key security details with you. Like any other new technology, the company behind (assuming it is launched properly) will handle all customer concerns. Regarding theft/loss of device, my speedpass assures me that so long as I notify them within 24 hours, I am not liable for any of the charges that I did not make. As far as someone picking up your account information, the device does not actually carry your account number. It has a unique ID that is tied to your account number on the backend. This is actually MORE secure, because in most cases, the employees of the location you are paying at don't even get to see your account number, only your device's ID number.
Final note, Paul, cell phone cloning is QUITE old news. Hasn't really been a reality in years now.

[John @ Feb 8th 2006 7:35PM]

Wow - I can't wait for these. I hope it has its own pocket protector.....

[Terry @ Feb 8th 2006 9:36PM]

I use the battery powered Exxon/Mobil SpeedPass window tags (like the EZ-Pass for the turnpikes). No need to even take my keys to the pump. The window tags, light up the pump confirmation symbles when you are a few feet of the pump. I've been using them for years with no problems. Could not be any eaiser, unless the gas pumps itself.

[John @ Feb 9th 2006 7:10AM]

Great idea as long as you don't lose it...

[[e-mail] @ Feb 9th 2006 11:14AM]

will you be able to purchase tickets to Broadway shows and dispay them from your phone when you show up at the theatre?

[Phil Hotaling @ Feb 22nd 2006 1:26PM]

Why not integrate fingerprint biometrics on these phones to verify identity and prevent fraudulent transactions. As we say, if I have your PIN I'm in. If I have your phone I'm in.

Phil Hotaling
303-596-9422

[Carmelita Wright @ Feb 22nd 2006 6:34PM]

With regard to all these new "conveiniant" devices, what Phil says "if I have your PIN I'm in" makes sense.

If I have access to these devices, Speed Pass, Cell Phone, Blink etc, I have access to something about YOU. And I can do with it what ever you can do, unitl you finally notice it missing! Then the account provider has to take the loss, and that does costs us all at some point.

The big problem is that the loss is NOT just the one item, but usually several, like a purse or wallet, the key chain, briefcase etc. These pieces combined are the beginiing of the THEFT of your IDENTITY.



Once that PIN opens the first account to fraud, having your licence #, credit etc the rest for these Identity theives is easy, and THAT does COST YOU. Time, $, and credit reputation.



My husband found a company that allows a biometric tag to be attached to these devices, including credit cards, so that even if are lost they can not be used by any one else, stoping the theif in their tracks! With out YOUR finger print to APPROVE the sale! they are useless, especially ONLINE, where the highest level of fraudulant credit card use takes place.



Someday, ID theft will be a thing of the past, but for now, I want the esae of use, but not the risk someone will clone my hard earned credit history and detroy it in a matter of hours.

[Michele Sang @ Mar 4th 2006 12:23PM]

Carmelita, what company has the biometric tag attatchment? THAT would eliminate some problems!

[PEB @ Mar 22nd 2006 12:23PM]

It's not RFID - the technology is Near Field Communications. http://www.nfc-forum.org/home

[Phil Hotaling @ Apr 11th 2006 12:43PM]

We just announced our product solution to prevent identity theft and fraudulent transactions this past week at the International Security Conference in Las Vegas. If interested please visit:
http://www.findbiometrics.com/viewnews.php?id=3139

Phil Hotaling
id-Confirm, Inc.

[Chris Smith @ Aug 10th 2006 1:39AM]

m-wallet today! KushCash is a mobile application that lets you send money pier to pier. You can use the app, wap site, or just go on the internet. check em out!

http://www.kushcash.com
they have a demo:
http://www.kushcash.com/user/tour/takeatour.jsp