Support for NFC (near-field communication) may be coming to Windows Phone 7 in its next update. According to Bloomberg, Microsoft will be adding support for NFC payments to its next update of Windows Phone 7, and will be outfitting new handsets with the technology as soon as this year.

NFC technology would allows you to use your Windows Phone 7 handset to do things like pay for a cup of coffee, a tank of gas, or a new pair of pants from your favorite retailer. Rather than pull out your traditional credit card or cash to make a payment, you'll instead wave your phone in front of a sensor at the store that will transmit your payment information from your handset to the cash register.

Google has reportedly teamed up with Mastercard and Citigroup to bring the technology to more Android phones (it's already available on the Nexus S). Apple was also reportedly looking at including the technology in its next iPhone, however, recent rumors indicate that might not be the case.

How do you feel about NFC payments? Would you use the technology if it was available for your phone?

[via Bloomberg]