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This year, NFC technology will finally make its way into the hands of millions of users. This will be spurred along by new smartphones, notably from Android, that have NFC capabilities baked into them. The technology industry is waiting to see if and when Apple decides to put NFC into the iPhone. Many pundits think that when Apple goes NFC, that will be the true harbinger of the heyday for mobile payments. As it stands, Apple's newest iPhone 4S is three months old and a new one will not be released till the third or fourth quarters of 2012, if at all.

It is still a cash world, with about 85% of transactions still being made with paper currency. It behooves the financial system and their technology partners to shift those scales. Even a 1% increase in digital payments means billions dollars flowing through the ecosystem.

Mobility will reshape the credit card and payment industry.

Intuit is announcing major news this evening around its mobile credit card swiping device and Square-competitor GoPayment reader. Intuit is one of the first major U.S. mobile payments readers to go international, with a launch in Canada. And Intuit is debuting a newly, redesigned sleek version of its reader.

Launched two years ago, GoPayment offers a complimentary app and credit card reader to allow small businesses to conduct charges via their smartphones. GoPayment is available for iOS, Android and Blackberry phones and similar to Square’s device, the card reader simply plugs into the audio jack of a phone or tablet. The credit card data is also encrypted, (and never stored on the phone).

The GoPayment mobile payment app is free and the basic service has no monthly, transaction or cancellation fees, and offers a 2.7 percent rate for swiped transactions. Intuit and Square actually both eliminated the per transaction fee. And Intuit recently started allowing merchants to keep and receive funds on a prepaid credit card as opposed to depositing the amount in a bank account.

Amazon’s use of the iPhone camera to recognize and classify objects was preceded by Google, which released Google Goggles, a similar technology, for Android in December 2009 and for the iPhone last October.

Come November, the world's second largest mass transit company will let its riders pay for trips by waving their cell phones at the terminal. The Deutsche Bahn, Germany's main railway operator, began implementing its Touch&Travel mobile payments system in 2008 and expects it to be ready within two months.

The system will rely on near field communications (NFC) chips contained in customers' mobile phones to handle the payment transactions for each trip. Alternatively, riders can pay with their phones by scanning a QR code at the beginning and end point of their ride.

Touch&Travel mobile apps are available for iPhone and Android-based smart phones. "In addition to using NFC or barcodes to provide location information, smartphone apps can use GPS or the user can type in a location ID number," writes NFC World. Riders will be billed for their transit usage at the end of each month.

Starbucks is launching what it claims is the high street’s first iPhone mobile app payment system after growing impatient with the rate of development of mobile NFC technology.

Customers with registered Starbucks Reward Cards will be able to make purchases in all 700 UK Starbucks stores using a one-click iPhone or iPod Touch app from January. It is also developing an Android app that it hopes to launch at the start of 2012.

The coffee chain said it “did not want to wait” for the development of NFC and it becoming mainstream. Because so few handsets are currently NFC capable, Starbucks chose to develop its own mobile payment system using iPhone apps.

Over time, using your smart-phone touch screen becomes second nature, to the point where you can even do some tasks without looking. Researchers in Germany are now working on a system that would let you perform such actions without even holding the phone - instead you'd tap your palm, and the movements would be interpreted by an "imaginary phone" system that would relay the request to your actual phone.

The concept relies on a depth-sensitive camera to pick up the tapping and sliding interactions on a palm, software to analyze the video, and a wireless radio to send the instructions back to the iPhone. Patrick Baudisch, professor of computer science at the Hasso Plattner Institute in Potsdam, Germany, says the imaginary phone prototype "serves as a shortcut that frees users from the necessity to retrieve the actual physical device."

Just under half of the UK population now owns a smartphone, and Google's mobile operating system Android is powering half of those those being sold – followed by RIM's BlackBerry models with 22.5% and Apple's iPhone at 18.5%.

The pace of smartphone sales is accelerating rapidly, too. In the 12 weeks to 2 October, they comprised just under 70% of mobile phones, according to new research from Kantar Worldpanel ComTech.

Dominic Sunnebo, Kantar's global consumer insight director, warned that the next year could see a lot of jockeying for customers.""Over the next six to 12 months, the current group of Android owners will be coming to the end of their contracts and looking for an upgrade," he said."Our data shows that when these consumers upgrade they tend to remain fairly loyal to Android itself – 62% buy another Android mobile – but considerably less so to the handset manufacturer."

1. Just Gimme My Mobile Wallet, Man There are a lot of deviations of a mobile wallet, and everyone does it differently. Essentially, the mobile wallet is exactly what it sounds like: A service that stores everything you would normally put in a physical wallet, including debit and credit cards, coupons and loyalty cards, in a mobile wallet. Not all wallets store data on the phone itself; SCVNGR's LevelUp and PayPal, for example, store data in the cloud. Your mobile wallet arrives empty, just like an wallet. You decide what goes in it. Google's mobile wallet works off of an NFC chip called the Secure Element, which acts like a secure wallet and differentiates this product from being just an app. It's also separate from the phone's main operating system and hardware.

Google launched its Wallet program in late May. The official launch (yes, a beta) happened in September. Google chose MasterCard as its official partner in the realm of mobile payments using near-field communications (NFC). At the time of launch, Nexus S 4G on Sprint with Citibank and payment network MasterCard was the only phone compatible with Google Wallet. The industry is preparing for Wallet, but the consumer side isn't quite there yet. In September, however, Visa also signed a licensing deal to include credit and debit cards in Google's Wallet program. MasterCard's has begun its shift toward technology innovator thanks to its new partnership and investment with mFoundry. This solidifies MasterCard's commitment to the field of mobile payments. PayPal has a slightly different vision for its mobile wallet. With a wallet in the cloud, consumers can select a payment instrument (credit card, debit card, bank account) and then use any Internet-connected device to enable that purchase. Really, PayPal wants to be technology agnostic, meaning that its mobile wallet should work on any device regardless of the operating system. In mid-November, PayPal unleashed its mobile wallet that features a card and a smartphone app that lets consumers store credit cards, gift cards, frequent flier miles and more. Speaking of mobile wallets, whatever happened to Apple's iWallet? NFC never did come to the iPhone4S.

2. Where NFCs Will Go, Few Do Know NFC (near field communication) enables the exchange of data between devices (typically, mobile devices) that are in close proximity to each other. NFC devices are used for more than just payments, though - they can be the link between real world actions and consumer-facing or back office systems. While card issuers love NFC options, they would force payment processors to radically redesign. Are consumers ready to trade in the swipe of a credit card for the tap of an NFC-enabled device? NFC may never be widely used as a form of payments, writes RWW mobile expert Dan Rowinski. While the technology around NFC is ready and being widely adapted within the industry, the actual infrastructure is not there yet. But the NFC hype is here. Since Google's Beta Wallet launch in September, it has partnered with Mastercard, CitiBank, Sprint, FirstData, Verifone, VivoTech (NFC partner), Hypercom, Igenico and NXP (NFC partner). On the opposing end, NFC mobile payment solution ISIS is poised to attack Google's Wallet; it recently partnered with Verizon, T-Mobile and AT&T.

25-year-old Tim Pool — an internationally known journalist who attracts tens of thousands of viewers to his live-stream broadcasts from Occupy Wall Street protests in New York, DC, LA and other cities. (His feeds and archival footage are also aired on mainstream networks such as NBC.) He and his partners hope that the toy chopper — the $300 Parrot AR Drone — will be one step toward a citizen-driven alternative to mainstream news.

Along with “general assembly” and “99 percenters,” Occupy Wall Street has brought the phrase “live streaming” to the forefront. Rising-star reporters — known best by their Twitter and Ustream handles — such as Pool (timcast) in New York City and Spencer Mills (oakfosho) in Oakland are passionate, deeply embedded correspondents who provide live video reporting – sometimes lasting a dozen hours or more – of protests, general assemblies and other Occupy events. Instead of using a satellite truck, they broadcast live “TV” coverage from 3G- and 4G-equipped smartphones over video networks such as Ustream.com and Livestream.com.

The AR Drone is the first toy that came out,” said Sam Shapiro, a 24-year-old programmer from Brooklyn who’s helping Pool hack together an airborne news network.

Wearable computing becomes the next mobile frontier.

We’ll remotely connect to our smart homes.

A jump in wireless home broadband adoption.

The technology is run through an application call QkR that users can download for iPhone or Android devices. Australian movie chain Hoyts is being used for the test program.

“MasterCard is constantly looking for ways to improve the consumer payment experience by making life easier, and initiatives such as QkR have been developed for these reasons,” said Matt Barr, head of market development and innovation at MasterCard Australia, Purchase, NY.

“Hoyts decided to partner with MasterCard for this pilot because they recognize the benefits of innovative payment applications in enhancing the overall cinema experience for moviegoers,” he said.

“Eventually we want to make a version of the Obama Square application available to everyone from within the App Store,” Katie Hogan, an Obama re-election campaign spokesperson told The New York Times. “Someone who is a supporter of the campaign can then download the app, get a Square attachment and can go around collecting donations.” The app will collect information such as the donor’s name, address, occupation and employer.

A representative of Republican presidential hopeful Mitt Romney told the Times that Romney’s campaign will begin beta-testing Square during Tuesday’s primary election in Florida.

“We’re going to be testing it in Florida tomorrow night to see how it works and then hope to roll it out to the rest of the country,” Zac Moffatt, the Romney campaign’s digital director said. “Anything that reduces the barrier to donate is going to help us with our supporters.”

Late last month, I ordered the beverage at Sightglass Coffee in SoMa, grabbed it from the counter and walked out without cracking my wallet.

Nobody chased me down because, when I first approached the cafe, the Card Case app on my iPhone detected the store's perimeter and automatically switched on. It broadcast my picture to the barista, who could then tap my pre-entered credit card number to cover the bill. The phone never had to leave my pocket.

It felt a lot like buying in the one-click environments of iTunes or Amazon, which is to say it didn't feel like buying at all. Square, the San Francisco startup behind the app, has come close to replicating the frictionless online buying experience in the brick-and-mortar world.

With more than 200 million mobile users, Facebook and its currency platform Credits is poised to be the future of how we pay for both virtual and physical goods.

Right now there are various different technologies and start-ups actively looking at ways to penetrate the mobile payments market. Each company has taken a different approach, from digital bar codes to near field communication (NFC).

Introduced in May of 2009, Facebook Credits was originally designed as a virtual currency to allow people to make purchases within games and non-gaming applications on the Facebook platform.

The rumored update to the Apple Store app for iPhone, which we noted last week could revolutionize retail, has arrived, albeit a bit later than expected. Apple Store 2.0 brings many improvements, the most noteworthy among them being Personal Pickup and EasyPay services.

As reported, the app now allows you to purchase items directly for in-store pickup, available within an hour if it’s in stock at the local store of your choosing. If an item isn’t available, the expected ship times listed in the online store appear to apply. You can also now order custom Mac configurations (with more RAM, bigger hard drives, etc.) for in-store pickup through the app.

The other big new addition is EasyPay, which allows you to scan the bar codes of items you wish to purchase in-store with your iPhone’s camera (iPhone 4 or 4S only) and then pay for them directly in the app through your iTunes account. The app keeps your EasyPay purchase receipts, which should come in handy if you ever have to provide proof of purchase to in-store security on your way out the door.

The slow rise of NFC (near field communication) has given rise to the idea that you can pay for purchases by doing little more than getting out your phone and tapping it at checkout. While the technology is growing, a surprising number of phones lack this feature. Thankfully there are companies out there who see this issue, and are working to correct it by offering accessories that will add NFC to your smartphone.

The first is called SDpass. This product has launched in China and works with KJava and Android devices with a built-in microSD slot. The microSD connection fits in the available slot, and is attached to a small antenna, which receives the signal. This is currently on sale for around $25, and features 2GB of storage on the SD card.

Another option that will soon be on the market is an NFC-enabled iPhone case being developed in Taiwan. It isn’t much larger than an ordinary case, with most of the bulk on the bottom, due to the connector. Since the dock connector is blocked, they have added a USB port, which will allow you to charge and sync the phone. It is currently looking to get approval from local regulators before it can be used on the market. When it receives approval, it should sell for around $51. Unfortunately there is no word on when (or if) either of these will come to the US.