In Japan, a company called DoCoMo is selling new "wallet phones." They are cell phones with a new type of computer chip inside that pays for things. An owner of one of these new phones goes to a convenience store with a small "money machine." He pushes the phone into a special slot. The machine puts money electronically into the "smart card" or chip inside the phone.

     Ready to make a purchase, the owner goes into a restaurant and sees a sign which says people can use their phones to pay. He waves the phone in front of the "chip reading machine," listens for a tinkling sound and bingo...the right amount of money is taken from the chip. A small screen on the card reader will tell you how much money is left in the chip.

     In Japan, they can now be used in stores, restaurants, vending machines and arcades!! Soon the phone will have enough information in it to either pay immediately for stuff, or charge it to a credit card.

     One airline in Japan lets customers check in faster with the wallet phone. Next year, customers will be able to pay for train rides and video rentals. Soon they might have keys for office buildings built into them.

     These phones may come to the United States soon. Many people think they may replace the wallets your parents carry around, and that will just make Mom's cell phone that much more important. So, one day in the not-too-distant future, she might say to you "Tommy, have you seen my wallet phone?"

Did You Know?

Wallet phones can be used as a debit card and will hold more than one credit card too!