Use of Mobile phones as for the communication purposes is thing of past and what is emerging as with the latest trend is that they are now used for a great number of utilities and purposes. Among many a good number of usages of these devices the most exciting one as the usage of the mobile phone as a payment device for purposes like mobile ticketing, providing special offers from retailers and downloading data from the internet.

And one of the technology as used in payment mechanism is NFC. NFC (Near Field Communication) that is a short-range communication technology for mobile phones. It is as similar as to Bluetooth and has a range of about centimeters. It primarily can be used in three instances:

•Card emulation: The NFC device acts like an existing contactless card.

•Reader Mode: The NFC device is active and reads a passive RFID tag, for example for interactive advertising;

•P2P mode: Two NFC devices can communicate together and hence can exchange information.

Here a phone can be modified like as a smart card and can be used as payment device similar to like as a payment device, identity card, security device and many other purposes. Letting the phone to work as a reader and to interact with RFID enabled objects in the real world situation. To make and have better use of all these utilities on a Mobile Phone an NFC chip must be pre installed in most mobile devices. However NFC is not provides as a feature of the iPhone or Android. It is the Nokia 6131 NFC phone can be used as a credit card, travel card, loyalty card and a “multi-purpose smart card. The only limitation with the phone its short ranges. In order to use it up one needs to carry up it as closer and nearer to RFID tag or reader device.