Microsoft (MSFT) Offering Mobile Payments in Next WP7

According to people aware of the situation, Microsoft (NASDAQ:MSFT) reportedly will offer a mobile-payment feature in the next version of its Window Phone 7 operation platform. Presumably it may be offered with the release of its first Nokia (NYSE:NOK) phone, although that's not a certainty.

With the source saying the first phones with the feature may be released by the end of the year, it lines up with the goal of trying to bring a Nokia phone to market in that time period, or at latest, in the early part of 2012.

Users would be able to purchase items in stores by bumping a Windows Phone device against a compatible cash register.

The technology is based on what is identified as Near Field Communication, which allows devices to communicate wirelessly with objects close by. NFC technology enables not only payments but also lets consumers use a handset for such tasks as redeeming coupons and loyalty points at local merchants.

Microsoft closed Tuesday at $25.49, up $0.08, or 0.31 percent.