Chicago Tribune

CHICAGO – Motorola Inc. said Wednesday it is rolling out new software that will allow cell phones to effectively double as credit cards.

Motorola’s “M-Wallet” technology will allow people to make purchases with their mobile phones, as relevant credit and debit card information will be embedded in the devices.

M-Wallet users will also be able to manage financial accounts on their mobile phones.

The phone-as-wallet concept has taken off in Asia over the past year, though it has yet to hit the United States. M-Wallet marks Motorola’s entry into the field.

Schaumburg, Ill.-based Motorola is the world’s second-largest mobile phone maker and also has a sizeable wireless network equipment operation.

M-Wallet is being developed by the latter and will be available on many phones, including those not made by Motorola.

It is expected to be offered through a U.S. wireless network within three to five months, said Navin Mehta, Motorola’s vice president of applications management.

The device aims to offer people more convenience in making payments.

By the end of the year, phones could be equipped not only with software like M-Wallet, but also with a new computer chip that allows retail checkout stations to scan a mobile phone like they would a credit card.

However, users will pay for such a convenience by paying for more airtime on their wireless networks.

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