Payment Feature For Windows Phone

Two people close to Microsoft Corp are out with the news that Microsoft is working on a version of its Windows Phone software that would let users buy merchandise with a flick of their handset at any checkout counter.

Microsoft plans to include mobile-payment technology in new versions of its operating system for Smartphone as part of an effort to narrow Google Inc’s lead in handset software. The first devices boasting these features may be released this year.

The company joins a growing list of software providers aiming to benefit from rising demand for ways to purchase products and services on the go. Chief Executive Officer Steve Ballmer is under pressure to regain mobile-software market share lost to Apple Inc, maker of the iPhone, and Google’s Android.

The phones running Microsoft’s new software will be based on so-called Near Field Communication, which lets devices communicate wirelessly with objects immediately nearby. NFC technology enables payments and also lets consumers use a handset for other tasks, such as redeeming coupons and loyalty points at local merchants.

Mobile-software providers are weaving NFC support into their operating systems. Google has made NFC part of Android for mobile devices and in December introduced the first Android phone with NFC capabilities. Apple is said to be working on adding the feature to its mobile operating system. Having NFC features may be crucial to Microsoft’s efforts to boost shrinking market share.

Microsoft is likely to get support in its mobile payments effort from Nokia Oyj, the handset maker that recently said it will use Windows Phone software on its devices. Nokia said it will make NFC a standard feature of its 2011 Smartphone based on the Symbian operating system.

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