You have mentioned the system being convenient. However, was it secure enough? Did the trial see any security failures? I think, yes. Otherwise, a succesful trial like the one you mention usually result in mass deployment and not withdrawal!
In Bangalore, India, between August 2009 and February 2010 Nokia together with Citibank had pilot run of payment through NFC enabled phone. The phone model used was Nokia 6212 classic having NXP NFC solution. I was part of this pilot run and it was very convenient to tap and pay. Later they discontinued, I don't know the reason for that. It was a great experience using this type of technology. Hope they will deploy it in near future.
It's interesting how Nokia's much maligned Symbian OS has managed to quietly allow the introduction of NFC hardware in the recently LAUNCHED C7. Nokia's been an early investor in NFC developments...seems the others are playing catch-up.
This would be a good path for finally modernizing the US in terms of payment systems. The rest of the world has largely left behind the quaint strip technology that we use for credit cards. The question is going to be whether or not they make the access secure. there have already been a couple of Android-related security problems pointed out in the last couple of weeks (Netflix and a couple of bank apps leaving sensitive information unencrypted).
NFC is a great promise. I have my wallet filled with smart cards now. The mobile will become a one smart card and that's it. Comfortable.
The daily transaction of info will be a swift just by passing the mobile phone through the checker, the teller... and even perhaps... a whole new bunch of apps will be available in surround of this technology such as using the phone for registering the groceries your buying in the super market! how's that for a plunge in the NFC enabled world?!
All these exciting news indicate Android is right up at the horizon of iPhone. With the number of apps increases and the support from the software community, Android based smartphones/ mobile devices will soon surpass Apple iPhone.
NFC likely becomes one of the media of e-payment in the future. What other area can it thrive?