Nokia Catching Up With Apple and Google

Nokia (NYSE:NOK) has partnered with Brazilian online payments company PagSeguro to create a Near Field Communications peer-to-peer payment service that will allow Nokia smartphone users to pay sellers for items and services and transfer money between two individuals, according to a report by the NFC Times.

The service, which launched last week, allows users to initiate payments and transfers over the network simply by tapping their phones together, according to the Nokia Conversations blog. Users of Nokia C7, Nokia N9 and Nokia 701 can use the service, provided both parties have the required app, which was developed by INdT, the Nokia Institute of Technology in Brazil.

To make a payment or transfer, both buyer and seller must first access their PagSeguro apps and enter their passcodes. The seller or transfer recipient then enters the amount to be received and taps the two handsets together. The transaction amount will appear on the phone of the other party, who must then select a method of payment and approve the transaction for processing. Acceptable payment methods include Visa (NYSE:V), Mastercard (NYSE:MA), American Express (NYSE:AXP), Diners Club, bank transfer and PagSeguro accounts.

Last year, online payment giant PayPal (EBSY) rolled out a similar NFC-enabled service as an alternative to peer-to-peer transfers on Apple’s (NASDAQ:AAPL) iPhone and Google’s (NASDAQ:GOOG) Android phones. Users initiate transactions through the service by shaking their phones together. The technology, by Bump, uses accelerometers and the network connection to locate users. PayPal P2P payments are processed over the mobile network. PayPal is reportedly interested right now in using non-NFC technology for its efforts at expanding to physical point-of-sale payments.