A MOBILE phone with a built-in credit card will be tested in Melbourne next year in an Australian-first.
Telstra, NAB and Visa are developing the trial, which will let customers pay for goods and services with a wave of their mobile phone.
About 250 Telstra and NAB customers will be supplied with a mobile phone embedded with contactless near field communications (NFC) technology, with a Visa application loaded on to the SIM card.
They will be able to make a payment by simply waving their mobile over a merchant's contactless reader. In the future, this technology could improve service times and lead to less queuing for customers.
The merchants -- there are expected to be about 30 named for the trial -- have not been finalised, but trials in the US and parts of Asia included fast-food restaurants, cinemas, petrol stations and supermarkets.
If stolen, the NFC-enabled phones must be reported stolen immediately -- similar to a credit card.
The credit card function could be disabled remotely, an NAB spokeswoman said.
"But of course, in the same way as if your credit card was stolen, there is consumer protection and you would not be left out of pocket," she said.
Larger purchases must be authorised by a PIN (personal identification number).
"For smaller purchases -- and the trial will help us find the right level, but we are envisaging less than $30 to $50 -- they will simply swipe their phone.
"But for purchases above that amount, there will be a PIN number," the NAB spokeswoman said.
Telstra has assured customers that transaction information will appear only on their credit card bill, not on their phone bill, with Telstra receiving no financial details or purchase information.
Telstra has not yet decided what fees, if any, will be applied to mobile credit card transactions. There will be no fees during the trial.
The Australian trial will begin in Melbourne early next year.