NFC goes on the buses for Europe's first rollout

Europe can now boast its first commercial rollout of near field communications (NFC) technology which allows users to pay for items using their mobile handsets.

The short range wireless technology will be used by German commuters in the city of Hanau, near Frankfurt, who will be able to use NFC-enabled mobiles to pay for their fares on the city's buses.

Following a 10-month trial, the regional transport authority, the Rhein-Main-Verkehrsverbund, has signed up with Nokia, Philips and Vodafone to roll out the system.

Those travellers who wish to pay with their mobiles will be able to buy a Nokia phone, the 3220, which comes with NFC technology integrated. They will need to hold the devices to NFC readers as they get on and off the bus.

At the end of the month, travellers will be billed for the trips they've taken.

As well as using the phones to pay for public transport, commuters can use their NFC mobiles as a loyalty card for local leisure facilities.

The possibilities of NFC are also being tested in the French city of Caen and in the Philips Arena in Atlanta where sports fans can buys goods or download content to their mobiles using NFC.

According to a recent report from analyst house ABI Research, the success of such pilots will determine the future of NFC. The research company predicts that more experimental NFC rollouts will take place this year and the technology will make its way into the mainstream from 2007.