Cingular Wireless, Citybank, Mastercard and Nokia have teamed up in order to test a NFC ( near field communications) mobile phone that can be used instead of a credit card. It would be easier and more convenient for one to use the phone instead of a credit card, since most people own a cell phone nowadays and always carry it with them. Thus it would save them the trouble of carrying their credit cards with them as well.

"Carrying a mobile phone has become almost as common as carrying a wallet," Scott McElroy, vice president of technology realization for Cingular Wireless, said in a statement. "This trial will continue to help us learn more about how NFC technologies work and how customers will want to use their phones as part of their real-world transaction process."

The down side of the service is that it is a lot easier for a mobile phone, usually carried in a pocket, to get stolen than a credit card. Also, security flaws in the system reminiscent of the currently available Paypass Mastercard system have already been reported.

The mobile phones will use NFC and the MasterCard PayPass system. The users will be able to make a purchase wherever Mastercard PayPass is available by simply holding their mobile phone near the card reader, while the payment is deducted from the mobile phone subscriber's account.

MasterCard PayPass is currently being tested in New York City's subway stations and can also be used at 1,000 Coca-Cola vending machines in Philadelphia, McDonald's or AMC movie theaters that are currently accepting the card. Some of Cingular Wireless subscribers and Citybank account holders in New York City will be testing these new NFC mobile phones. The trial, which will last three to six months, will allow the companies to evaluate the speed and convenience of the "tap and go" mobile payments.