1. Can mobile phones replace our wallet?

Yes We believe it can, and it can be smarter: for example applications can be linked and transactions can be more secure. A wallet can be integrated into a mobile phone by including a multi-application smart card. Every application correspondes to a particular traditional function, for example one application can be a particular credit card. These applications can be smarter and more secure than the traditional cards, cash or keys they replace.

2. Can mobile phones replace cash?

Yes and No
Today we do not know of large scale use of mobile phones for cash-like payments. One reason is, that cash transactions must be possible off-line when the mobile phone has no radio connection, thus requiring sufficient functionality within the phone itself. Electronic money needs to be stored within the mobile phone.

3. Can a wallet phone be used off-line, i.e. when it is out of range of radio waves?

Yes. Many functions can be used off-line. For example, JAVA applications in the phone can check the electronic cash balance, show the transaction record, and the phone can be used for payments. Adding to the e-cash account via a credit card, performing electronic banking transactions, or booking a theater ticket on the other hand need a network connection.

4. Could applications stored in my mobile phone one day replace all items in my wallet (cash, train tickets, subway tickets, the tickets for next weeks rock concert, my company ID or student ID, my fitness club membership card, the photos of my wife and kids etc)?

Yes. At the core is a special smart card built into the mobile phone. On this smart card many (on the order of 40) applications can be stored: electronic cash, train tickets, identity cards, credit cards etc. This number of applications may increase in the future. Advanced mobile phones have external memory cards, which allow storage of a large personal photo album, or photos for professional needs, or other data.

5. Is there a way to use a mobile phone in the same way as a credit card? Can credit card functionality be built into a mobile phone?

Yes. There are systems where credit card data can be stored in a mobile phone and can be communicated at a point of sale to make a purchase or other transaction. One way to do this, is to store the credit card data inside the mobile phone. Nokia has introduced such a system in several locations of the world on a test basis. In this system only an identification number is stored in the mobile phone, but no other funcationality. The JAVA application communicates with a point-of-sales equipment via the infrared link. In the future, credit card functionality can also be loaded into multi-application smartcards built into mobile phones.

6. How are on-screen coupons and 2D bar codes (QR codes) used for payment with mobile phones?

QR codes (2D bar codes) have become a standard for interfacing mobile phones, and are used in a variety of different payment systems. 2D bar codes are used for example to pay the mobile phone bill at a convenience store. The billing information is encoded in a 2D bar code which is downloaded to your mobile phone. The 2D bar code containing the billing information is read by a sensor at the cash register of a store, where payment can be made in cash. Completion of the transaction is communicated back to the billing center through the online connection of the cash register.