Visa approves NFC smartphones

Near field communications (NFC)-enabled smartphones from Samsung Electronics, LG Electronics and RIM have been certified for use with Visa PayWave, its application for mobile payments, Mobile Payments Today reports.

Visa says PayWave on mobile devices is compatible with existing payment terminals using NFC technologies.

According to the payments giant, it is aiming to ensure that mobile payment devices are in line with current technology and security standards, which can easily integrate with the payments ecosystem, Silicon Republic states.

It has a compliance testing process for both the mobile devices and secure elements that host the PayWave app, which includes technical and usability testing for Visa's mobile payment functionality.

This aims to ensure that mobile payments are compatible with the standard for chip-enabled payments and establishes a single range for all NFC Visa payment devices.

According to Market Watch, Nick Holland, senior analyst Yankee Group, says NFC chips are gaining momentum as an industry standard for mobile payments.

He says: "Yankee Group predicts that the value of NFC-based transactions will grow significantly, from $27 million in 2010, to $40 billion in 2014."