U.S. Bank, owner of locally based Nova Information, MasterCard Worldwide and Nokia have announced a mobile payments pilot program in Spokane, Washington using new Nokia mobile phones equipped with MasterCard PayPass payment functionality allowing consumers "to pay for purchases with a tap of their mobile phone, instead of sliding a card through a magnetic stripe reader, handing it over to the cashier, or fumbling for cash and coin.

The phones integrate technology that, when used at a PayPass-enabled terminal or reader, transmits payment details wirelessly, eliminating the need to hand over a card for a merchant to swipe through a reader. After the terminal is tapped with the phone, the customer receives payment confirmation and is on his or her way. With this new way to pay, there is typically no need to sign for transactions under $25.

Mobile payments are on the rise in the United States and worldwide, and will be available to a growing number of U.S. Bank customers in the future. As of Nov. 27, 2007, more than 80,000 merchants accept MasterCard PayPass, including many in the Spokane area, such as Regal Cinemas, McDonalds®, Jack in the Box® and 7-Eleven®. Gonzaga University will also accept PayPass at various vending machines throughout its campus in order to provide busy students and faculty with the fastest and most convenient payment option available.

Program participants received Nokia 6131 NFC phones, which are equipped with the Near Field Communication (NFC) technology needed to communicate with MasterCard PayPass readers. MasterCard PayPass is proving to be a better way to accomplish even the smallest transactions at gas stations, movie theatres, concession stands, vending machines, quick-serve restaurants, taxi cabs, sports arenas and other emerging acceptance locations.

MasterCard PayPass payments made via mobile phone are processed using the same secure network through which billions of other MasterCard transactions are processed each year. In addition, consumers can protect their payment account information on their phone with a password. Should a customer misplace his or her phone, the payment feature can easily be disabled remotely with a call to U.S. Bank customer service.

The ability to initiate secure Over-The-Air (OTA) delivery of the MasterCard PayPass application to the mobile phone is necessary for both effective implementation of the mobile payments pilot program and eventual commercial rollout. Venyon is providing this secure OTA service which also allows for remote personalization and management of the payment feature.