Samsung will start embedding a new Near Field Communications chip in its next generation smartphones from early next year in a bid to corner the growing mobile, banking, advertising and sales market.
The chip will allow users to use their smartphones to pay for public transport, buy goods, or pay bills.
The design of Samsung's NFC chip means it can still make mobile payment even without battery power.
The NFC chip comes with embedded flash memory, which allows designers to upgrade software or firmware more easily.
Tae-Hoon Kim, VP of DDI and C&M marketing at the System LSI Division of Samsung Electronics, said: ‘NFC is recognized throughout the industry as an easy and effective way to transmit encrypted information between mobile devices or between mobile devices and other stationary NFC-enabled devices such as kiosks.
‘As momentum builds for adoption of NFC technology in next-generation/upcoming smartphones, we look forward to securing a competitive footing in NFC-based solutions with our new NFC technology, offering powerful mobile characteristics such as low power design and advanced RF sensitivity.'
Samsung's chip is expected to reach mass production in the first quarter of 2011.