Royal Philips Electronics of the Netherlands, one of the world's biggest electronics companies, and Visa International, the world's leading payment brand, announced a major alliance to jointly promote and develop the application of contactless chip technology for payment transactions.

Through the alliance, Philips and Visa intend to explore a wide variety of applications and engage potential partners, such as handset and electronic device manufacturers and service providers, in areas such as gaming, ticketing, music, mass transit, and home shopping.

As a result, content providers and merchants will have a means to develop new revenue streams and distribution opportunities, as well as attract new customers. Consumers will benefit from easier, more flexible access to new shopping, transit and entertainment experiences. Banks will have the opportunity to improve customer convenience and create new service models.

According to a medianet release, the cooperation between the two companies will help promote the benefits of fast and secure universal commerce to the everyday connected consumer and to businesses worldwide such as content providers, merchants and banks.

The release adds that both organisations have recognised the enormous demand for non-traditional payments via connected consumer devices such as PCs, mobile phones, gaming and other handheld devices. By combining the benefits of electronic payments and contactless chip technology, Philips and Visa plan to deliver contactless solutions that will enable payment transactions anywhere, anytime and through any device.

Philips Semiconductors senior VP Karsten Ottenberg was quoted as saying: “As a pioneer in delivering contactless solutions for connected consumer applications, Philips’ alliance with Visa embodies the vision of bringing universal commerce to connected consumers. Visa’s trusted payment expertise and Philips’ innovation legacy makes for an ideal partnership and we both look forward to setting the standard for future payment technology."

" Philips’ vision of the future is a world connected in which everyone can always securely access multi-rich information, entertainment and services. Our contactless chip technology, which can be utilized for convenient and secure Visa payment transactions, is a key strategic cornerstone in making the connected consumer and the connected home a reality,” Ottenberg added.

“Visa’s commitment as the world’s leading payment brand is to enable commerce in any environment and through any means,” said Visa International Global Product Platforms executive VP Stephen Schapp. “We are very pleased to be working with Philips as a global leader in contactless chip technology. Our vision of universal commerce is to leverage Visa’s global reach, systems capabilities, and positive brand association, and to embrace new technologies in such a way that we facilitate secure payments through any channel and on any device.”