M-Wallet is the name of the payment system to be launched by Motorola. The downloadable application will work with mobile phone handsets from other manufacturers and PDAs as well.

Once the M-Wallet application is loaded onto the mobile device, users can then manage their accounts through the Wallet Service Center. At launch the M-Wallet system will only allow banking transactions and purchases from participating retailers.

Contact-less payment is expected as soon as the technology is available for US handsets. “Contact-less payment” is built on Near Field Communication (NFC) which allows devices embedded with NFC chips to serve as methods of payment when linked to accounts. This allows the device to complete the transaction without much effort and takes only seconds.

Motorola is hoping for agreements from other US mobile phone carriers for the technology to reach its full potential.