Smartphone ‘wallet’ set to replace change

By Jane Bradley
Published on 28/02/2012 12:23

SHOPPERS will be able to pay for small purchases using only their smartphones following a new partnership between mobile giant Vodafone and credit card operator Visa, which will create a “mobile wallet”.

From the autumn, customers of the network with specially-enabled mobile phones will be able to use their handsets instead of cash or cards at the checkout. The technology will allow users to pay for goods or services with a wave or tap of their smartphone – in the same way Oyster cards are used on the London Underground.

The announcement is the latest in a wave of so-called “contactless” payment technology, which began with Barclaycard in 2008.

Last week, Barclays bank revealed a smartphone app, Pingit, which allows users to transfer money between accounts by just using their phones. Meanwhile, Mastercard recently announced its PayPass sticker system.

The latest service uses a form of payment technology called Visa payWave mobile, which will be available on “near field communications” phones such as the BlackBerry Bold and some types of Samsung Galaxy. Set to launch worldwide from the spring, it will be based on the Visa prepaid account and available to users of the Vodafone stored value account.

While consumers can simply swipe their phone at a payment terminal to pay for items, such as newspapers or coffee, they will be asked to enter a Pin code into a terminal for purchases of £15 or more.

“Our mobile wallet will be open to any service provider and we are committed to enable all partners to provide our joint customers the richest service portfolio possible,” said Vodafone chief executive Vittorio Colao.

Visa said the service had “the potential to transform the way people pay and get paid”.