High market penetration of cell phones in Japan is fueling several payment initiatives, in which Visa International, local operators and banks are participating, according to Electronic Payments International. In Japan, for instance, NTT DoCoMo, the premier operator, is exploring payment and authentication at a merchant’s real-world POS terminal, at vending machines, or in the form of virtual bar codes or vouchers. Visa International is also leveraging NTT DoCoMo’s expertise in 2-D bar codes and infrared systems by launching an infrared-based virtual credit card payment service, VISAPPI, in partnership with its issuers.

The VISAPPI service leverages a DoCoMo application, I-appli, based on Visa’s Proximity Payments specification, which subscribers download with credit card data to their handset before using a pass code to make a purchase at the POS. NTT DoCoMo’s arch-rival, KDDI, is also exploring mobile payments by offering a 3G handset with a dual-interface card for contact and contactless payments in partnership with several issuers. KDDI’s Kei-Credit service, which integrates the carrier’s 3G Au handsets and a PIN-activated UIM card for mobile credit card payments, leverages the contact interface of the dual-chip card.

(Electronic Payments International)