So long Credit Cards – Mobile payments are on their way!…
O2 has announced a smartphone payment system, called O2 Wallet, to rival Barclays, Google and PayPal.
The new app allows you to transfer up to £500 between mobile phones. It does not have the capability as of yet to purchase in shops. You can however, use the bar code scanner which allows you to search for products online, find the lowest price and purchase it via the phone. This could be a real game changer for online retail, meaning their pricing must be highly competitive to adopt to new consumer behaviour.
O2 said they would include near field communication (NFC) technology, which allows people to pay for goods by touching a phone against a reader, in the near future.
The system requires a user to set up an O2 Wallet account and load money onto it via a credit or debit card. From there, money can be sent between accounts instantly or used to shop online. It is not linked to a user’s mobile phone bill, but the service is available to everyone, not just O2 customers.
This is just the latest in mobile payment technology following suite from Barclays, Google and Paypal.
A technology like this could have a real impact on how the retail industry now markets to the consumer.
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