Microsoft Said to Add NFC Capabilities

Microsoft Corp. is working on a version of its Windows Phone software that will let users make contactless payments using their phones, two people familiar with the plans said.

Microsoft, of Redmond, Wash., aims to include mobile payment technology in new versions of its operating system for smartphones to narrow Google Inc.'s lead in handset software, said the people, who asked to remain anonymous because the features are not public. The first devices with these features may be released this year, the people said.

The phones running Microsoft's new software will use near-field communication chips, which let devices communicate wirelessly with objects immediately nearby. NFC technology enables payments and also lets consumers use a handset for other tasks, such as redeeming coupons and loyalty points at merchants.

Mobile software providers are weaving NFC support into their operating systems.

Google has made NFC part of Android for mobile devices and in December unveiled the first Android phone with some NFC capabilities. Apple Inc. is said to be working on adding the feature to its mobile operating system, people familiar with the company's plans said in January.

Microsoft is expected to hold about 5.5% of the mobile operating system market this year, compared with 39.5% for Android, 15.7% for Apple's iOS and 14.9% for Research In Motion Ltd.'s BlackBerry, according to IDC, a consulting firm in Framingham, Mass.

This story has been reprinted with permission from American Banker.

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