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Plan to use phones as credit cards

More than half of Japan's 85 million mobile phone users could soon be ditching the plastic and using their handsets as electronic credit cards.

According to reports, NTT DoCoMo, Japan's biggest mobile phone company, is in the final stages of talks to expand its mobile payment services with at least one leading credit card company.

DoCoMo sources said the firm planned to take a 33.4% equity stake in Sumitomo Mitsui Card, Japan's second-biggest credit card firm with 12.8 million subscribers. The stake would give DoCoMo a veto at shareholder meetings.

DoCoMo is also said to be in talks with JCB, Japan's leading credit card company.

If successful, DoCoMo's 49 million subscribers will be able to use phones as credit cards. Its "wallet phone", launched last year, allows bills to be paid at shops.

DoCoMo hopes the phones will replace cash, credit cards, ID cards and train tickets. By next year, one railway firm plans to allow handsets to be used as commuter passes.

The credit-card role would give DoCoMo an edge over its rivals in an almost-saturated mobile phone market.

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