Will that be cash, credit or cell phone?

You've probably been reading headlines and subheads like this for years now, haven't you? "Oh, my cell phone will replace my wallet?! Cool!" Every year, a new cell phone "wave-and-pay" story pops up like your BFF promising to return the hair dryer she borrowed three years ago.

This year it's finally happening. Really. I swear. No kidding.

"It" – the ability of a cell phone to become a digital wallet – is made possible by a technology called Near Field Communications (NFC). NFC is a wireless communications technology related to RFID (Radio Frequency Identification) and designed to replace credit card magnetic strips. Two NFC devices within a few centimeters of each other can perform a wide range of digital tasks, of which impersonating a wallet is one. 

For instance, in many European countries and Japan, commuters use NFC-enabled cell phones to pay mass transit fares. Some hotels are completely NFC automated – check yourself in on a terminal at the front desk, where your phone is digitally programmed as a room key – you wave it over the room lock to open it, then you check yourself out when your stay is completed. You won't need to interact with the hotel staff unless the house cleaning folks catch you in flagrante delicto.

Which phones have NFC?

Google's current Nexus S phone has it; in fact, all Android phones running Android 2.3.3 has the NFC capability. The just announced Samsung Galaxy S II has it as well (although the company has been vague about the implementation).

BlackBerry phones also are likely to have NFC built-in, at some point, if oblique hints from RIM co-CEO Jim Balsillie mean anything.

The one hold out may be Apple. There had been rumors the iPad 2 would include NFC – but it doesn't, and there are conflicting reports about whether NFC will be included in the iPhone 5 due this summer or won't be included. Make up your minds!

In either event, a Canadian company called Wireless Dynamics makes an iPhone 4 NFC-enabled case called the iCarte.

But even if the capability is included in iPhone 5, Android or BlackBerry phones, we're still missing the software and apps to make it all work.

Show me the money phone

Your "Blink" credit card uses NFC as do many credit cards, and there are 265,000 PayPass terminals in the world – half of them in the U.S.

So what's taking so long for NFC to find its way into cell phones? It's not the technology – it's the banks and ancillary financial and credit institutions. MasterCard and Visa both have been conducting pilot programs around the world.

You see, NFC represents a complete business paradigm shift. It requires a host of new security software and technology – both at the financial end and in the apps to make you feel safe about using your phone as a credit or debit card, including authentication methods so you can just wave-and-pay. So it's taking them a while to cross the i's and dot the t's.

Next week in Orlando is the spring edition of the twice annual CTIA show (CTIA is the wireless industry lobbying group). I'll be there bringing you the latest in cell phone news, including many more NFC-enabled phones.

But sooner rather than later, finally, you'll be able to leave your cash and credit cards, maybe even your keys, at home – just remember to take your cell phone.