Digital wallet is now in the palm of your hand..on a smartphone.

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PayPass Wallet Services, by MasterCard, is “a suite of technologies” that allows you make easy purchases in-store and online – regardless of the merchant – with ‘tap and go’ NFC technology.

And best of all the service is free.

After loading payment and shipping information, users can securely make purchases online just by clicking the PayPass Wallet button, regardless of the device you’re using.

And once you’ve done it once you’ll never have to type in your credit card details ever again – or your billing and shipping details, for that matter.

The digital wallet can be used in-store wherever you see the PayPass button, meaning swiping with EFTPOS cards could soon be a thing of the past.

A PayPass Wallet mobile app is also on the way for iPhone or Android devices, Mastercard confirmed.

However, there’s one snag – smartphones need to have Near Field Communication (NFC) technology to use the PayPass – meaning HTC One X, BlackBerryBold 9900 / 9790, BBCurve 9360 / 9380,  Nokia Lumia 610 NFC, Samsung’s Wave Y, Galaxy mini 2, Galaxy S Advance, Galaxy Nexus (GT-i9250), Sony’s Xperia S, Xperia P and  Xperia sola, are all compatible. 

Some of these models are not even on sale in Oz and there are just a handful of NFC smarties on sale here at present – although this looks set to change this year. The new iPhone is also said to be NFC ready.

The digital wallet works with MasterCard, Amercian Express, Visa, and Diners Club international and other branded cards – regardless of whether it is credit or debit.

And if your worried about making a matrix of payments online, Mastercard say they have it covered with “multi-tiered security” built in and account’s identity verification controls.

This new online capability complements the contactless PayPass system already in place at thousands of merchants worldwide. And the same wallet credentials used online can be accessed through the mobile app.

Once activated, you can walk into any PayPass ready merchant today, tap your phone on the reader and the transaction is completed in seconds.

JB HiFi has already endorsed the PayPass Wallet, which is due to be unveiled here in Q3, as have CBA and Westpac.

“The future of retailing is about a harmonious experience both in-store and online, and with the PayPass Wallet Services we feel we’ll be able to provide innovative payment solutions to our customers to deliver on this,” says Richard Murray, CFO, JB Hi-Fi.

Simon Black, CEO, Sage Pay also reckons its the way of the future:

“A wallet on your smartphone promises convenience and security at a new level. Within just a few years the traditional wallet in developed economies will be a thing of the past.”

“I’m delighted that PayPass will enable 40,000 Sage Pay merchants to offer their customers more choice of how to pay online, and over time, in store through contactless, for the fast growing number of consumers with NFC-enabled devices.”