Paper is on the way out, and mobile phones with a graphics display will soon be the new airport boarding pass, according to the New York Times on Tuesday. A 2-D encrypted barcode and an ID is all that will be required to board. Keeping the mobile phone charged will be crucial.

Continental Airlines is currently undergoing testing, and eventually the Transportation Security Administration is expected to grant approval. The 2-D bar code, unlike the 1-D bar code on food items, is a rectangular grid of encrypted data that looks like TV "snow."

"We definitely see this as the wave of the future," said Andrea McCauley, a spokeswoman for TSA. “It’s something we are very enthusiastic about pursuing."

The airlines, which have already saved millions of dollars by eliminating paper tickets see even more savings in eliminating the paper boarding pass. Passengers will be able to avoid the kiosks if they have no baggage to check. Airlines will be able to communicate with passengers directly for any aspect of their travel. "We kind of like the idea long term of having a kiosk in your pocket," said Mark Bergsrud, Continental senior VP for marketing programs.

Passengers will still have to show an ID when they pass through security and the information must match the bar code on the phone. Airline research has shown that passengers want this kind of convenience.

With the mobile phone transitioning from a mere communication device to a smartphone, Web browser and electronic boarding pass (perhaps even electronic credit card), phone security can be expected to become even more important for iPhone customers.