Chunghwa, Nokia test Visa handsets

Nokia Oyj, the world's largest mobile phone maker, and Chunghwa Telecom Co (中華電信) will test technology that allows subscribers to use their handsets as Visa Inc payment cards.

Chunghwa, the nation's largest phone operator, and Nokia will begin testing the product on Oct. 1 with 500 Chinatrust Commercial Bank (中國信託商銀) customers over six months, Gordon Cooper, head of mobile payments at Visa Asia-Pacific, said yesterday.

Chinatrust is the nation's largest credit card issuer.

Chunghwa aims to boost sales of ring tones, pictures, videos and payment-facilities amid slowing revenue from calling services.

SK Telecom Co, South Korea's largest mobile-phone operator, began a similar service with Visa in April.

"The technology is designed for low-value transactions" and targets to capture more of the payments market, Cooper said. Visa has more than 3,000 outlets with its PayWave contact-less card readers in Taiwan.

Chips embedded in each handset store card details that are transmitted using near-field-communications (NFC) technology in the phone to Visa's existing PayWave card readers at outlets throughout Taiwan.

During the trial, outlets including Blockbuster Inc will offer discounts to Chinatrust users, while posters and signs embedded with separate NFC chips will be able to send coupons when consumers wave their handset over the transmitter.

Chunghwa shares have gained 8.9 percent this year to close at NT$60 yesterday in Taipei, lagging a 14 percent gain on the TAIEX index.