O2 launches mobile wallet trial

O2 fleshed out the details of the phone/mobile wallet/Oyster pilot this morning.

It's based around a Nokia 6131 that uses NFC (Near Field Comminications) technology and a 'wallet' containing the electronic cash needed for tube travel and low value payments at retailers.

The trail will see 500 punters using phones credited with £200 over a six month period, but a proper launch isn't due until end 2008 or later.

The launch was as much an attempt to garner interest from retailers who are needed to come on board to make a proper launch viable.

The project is backed by a large consortium: Nokia, Barclaycard, Transport for London, O2, Transys, Visa Europe, and AEG.

The downsides at present appear to be the need to carry ID to prove it is your phone, the scarcity of retailers accepting contactless payment, and the hassle of using a phone as a swipe mechanism as opposed to the Oyster card.

But on the upside the consortium claim that the plan is to offer the facility on more phones - eventually.

Much will depend on the success of the pilot and public demand for contactless payment on mobiles with all its inherant security concerns.

(Ken Young)