Japanese 3G mobile owners can now pay with their phones instead of their wallets with a new service launched by wireless mobile network NTT DoCoMo.

The Felica system lets those with compatible mobile handsets get cash and carry out other secure credit card-based transactions using a 3G network.

A credit card-sized Sony smart card powers the system. It holds a chip which can be loaded with personal data.

The handsets have built-in security to stop others using the service.

With a subscription, the wallet phones work by sending data at high speeds and securely over the DoCoMo network.

Special readers can also be built into cash machines and cash registers to recognise the transactions.

More here.