The message to retailers from IBM is simple: Embrace new technologies or suffer the consequences.

Contactless payment methods are already becoming the norm, paving way for a future where mobile phones will supplant wallets, according to MasterCard head of market development, Matthew Barr.

The mobile user interface is set for a range of changes in the next 12-24 months, creating new modes for users to interact with their devices, and with other devices nearby and network-based services.

Android-based smartphones with NFC (Near Field Communication) will help turn mobile phones into wallets, but there are issues that have to be solved before that happens, according to analysts.

Short range communication using NFC (Near Field Communication) circuitry embedded in mobile phones has had a difficult journey to market, but it may soon see light at the end of the tunnel with increasing adoption for city transit projects, according to analysts.

Wireless chip maker Broadcom plans to acquire Innovision Research & Technology, which specializes in short-range data communication, for approximately US$47.5 million in cash, Broadcom said on Thursday.

Visa expects soon to begin trials of contactless payments system for Apple's iPhone, using a special case for the phone developed by DeviceFidelity.

The mobile phone is turning into the platform of choice for banking in emerging markets. In developed markets, however, the phone has struggled to compete with existing payment methods, and the challenges aren't going away in 2010.