O2 UK has announced a new mobile payment initiative using the O2 Wallet brand. It’s a mobile application that allows customers to send money from an existing debit or credit card to individuals or to retailers. NFC payments are expected to be added as an option in the future.
The service is available to customers on any UK network and will largely be free for the first six months. After six months, sending a ‘money message’ to transfer funds will cost 15p.
Payments to individuals use the recipient’s mobile phone number for identification, as does the rival Barclays Pingit service.
Over 100 online retailers have already agreed to accept payments from an O2 Wallet.
James Le Brocq, Managing Director at O2 Money, said “O2 Wallet delivers the benefits of mobile money to more UK consumers than any other product or service currently available. With O2 Wallet, it’s easier to transfer money, track expenditure and pay swiftly and securely, all using your mobile. We believe it will transform the way people manage their finances and spend money. In additional to PINs and passwords, all personal details and financial data are held on remote central servers rather than on the mobile device itself. This, we believe, is the safest and most secure way to deliver mobile payment services.”