In the second half of this year, First Data, in collaboration with Tyfone expects to launch a contactless payment system known as SideTap. The new system will be based upon the microSD card, so that smartphones and other networked mobile devices that have a compatible microSD card slot can be used as transaction terminals to authorize and approve financial transactions. The two companies placed a special emphasis on ensuring that their technology was based upon the microSD card to ensure widespread compatibility with a variety mobile devices regardless of brand name.

The additional benefit of using microSD cards is that they can also perform a secondary function as storage devices as they will include 1GB of storage space. Hence, just like other memory cards, the SideTap microSD cards can also be used to store personal data such as digital pictures, audio files and documents.

Mobile payment systems is a technology area that will grow in the coming years as mobile users look for quick payment options that don’t require carrying paper money. Recently at the Mobile World Congress, a no contact mobile payment system was being tested by several partner companies with some promising results.

Via: Gadget Venue, TechChee