The main aim behind integrating this payment facility is to increase the use of contact-less payments which are believed to be safer than these plastic credit cards. Even if your mobile is stolen, the card number is stored in an encrypted form and can be disabled remotely. Due to increasing fraudsters even the mobile systems have permitted the use of one-time card numbers which are of no use after one transaction or else the merchant’s computer should be hacked to retrieve the information. 

Sam Shrauger, Visa's senior vice president for digital services in developed markets, said having payment information on remote servers is cheaper and easier to operate than using the phone's hardware.

With hardware-based systems, he said, wireless carriers and device makers sometimes restrict what can be done. As the U.S. carriers are in to developing a new competing system named Isis they have blocked Google’s wallet app which is based on NFC.

Visa and Mastercard have decided to announce their innovation in the “Mobile World Congress Wireless” (a trade show) which will be held in Spain next week.

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