Mobile phones are stepping up another gear after Nokia and fellow mobile carriers have agreed to develop their handsets so they become wireless wallets.

This is all according to a wireless telecoms interest group - however there have been rumours about this for some time. The mobile phone becomes a nifty swipe card, more or less, so instead of pulling out your loose change or rummaging around for that valid credit card the phone can be used instead.

Similar to an access card, the intention is for it to be waved over a wireless reader and in some cases you will punch in the PIN number on the phone. This is pretty much like the design for the Oyster London Underground Card concept.

"The phone becomes a wallet, after that you can pay with it just like you pay with your bank cards", Kai Oistamo, head of Nokia's main cell phones unit.

Paying by card could soon be no longer.