Near Field Communication (NFC) chips are making their way into mobile phones this year. It will allow people using mobile phones to make purchases in the retail industry without using cash, credit cards or debit cards.

NFC is a wireless technology, which does not need contact to connect objects. Mobile phones and other equipments that are NFC enabled connect to each other, when they are four centimeters away, allowing for transact payments to take place. NFC-enabled mobile phones allow for the deduction of purchases from a pre-paid account or mobile credit cards and bank accounts directly.

Google Nexus S and Nokia C7 or Astound, already have NFC chips in them and are on sale in the US. But, many more are expected to be on their way by the end of 2011. Researchers at Forrester say 40 to 50 million mobile phones with NFC will sell in 2011.