Today’s SF Chronicle has an informative write up on mobile payments prompted by the CTIA Wireless 2006 convention in Las Vegas last week where PayPal announced its PayPal Mobile service.

Using your cell phone as a smart wallet

— PayPal has a service that allows a user to pay for items out of a PayPal account through text messages. The service, currently operational, would enable one to pay friends or donate to charities while on the go.

— Visa, MasterCard and American Express are working on ways to embed a credit cardholder’s information electronically in a cell phone. A payment is processed when the data is placed in front of an electronic reader. The system is in the testing stage; most companies expect a rollout possibly later this year or next year.

— Obopay’s users can use their mobile accounts to transfer money back and forth with others on cell phones. The service went live last week.

Read the full article here:

Short of cash? Buy it with your cell phone
Payment chip puts impulse purchasing at your fingertips
– Ryan Kim, Chronicle Staff Writer
Monday, April 10, 2006

See also this previous post on mobile phone payments pilot at the Philips Arena in Atlanta.