Nokia invests in smartphone payments

The system Nokia has invested in, called Obopay, allows users send money using text messaging or an Obopay client on their phones. Businesses can also let people pay for goods or services via Obopay.

The system works by allowing funds to come out of bank accounts or credit cards. People who lack bank accounts can prepay funds into a Obopay account.

Obopay is available in the US and India and competes with many other mobile payment systems, including eBay Inc.'s PayPal Mobile in the US. It is not yet confirmed how much Nokia has invested in Obopay.

Nokia has also been investing in other mobile payment technologies. This includes near-field communications which lets users wave their phones in front of a reader at a cash register to make a payment, much like an Oyster card on the London Underground.