Coles trials mobile 'contactless' payments

Coles announced a trial of a mobile payments app that allows Coles MasterCard customers to pay using smartphones with near field communications (NFC) chips.

The trial will run three months, and Coles said the app could be publicly available within 12 months.

NFC technology enables smartphones to communicate with other devices containing an NFC chip. Coles MasterCard users will be able to purchase goods by waving their smartphones over a MasterCard PayPass reader.

The mobile payments app can be used in any store, Coles or otherwise, which accepts MasterCard PayPass. Coles customers can earn Flybuys points as they pay.

The trial will include 60 participants with Samsung Galaxy S3 handsets running the Android OS. The app is the result of a partnership among Coles, GE Capital Australia, Gemalto, MasterCard and Vodafone Hutchison Australia.

Who will win the digital wallet wars?

The trial requires a Vodafone SIM card, but a Coles spokeswoman said the plan is to expand the app to support all mobile networks.

Vodafone previously launched an NFC-based payment app with Visa.

Follow Adam Bender on Twitter: @WatchAdam

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