Beijing residents can swipe their cellphones to get on buses or subways after China Mobile signed a contract with the capital's public transportation company, the People's Daily website reported on Monday.

After installing an SIM card, supporting Near Field Communication technology, passengers can pay with their phones, the report said.

China Mobile offices in the capital, including those located in Xidan, Wangfujing and Jinrongjie, have provided the service for residents. It can also be used in some markets and restaurants, the report said.

The service to exchange a new SIM card costs 20 yuan ($3), the report added.